Reference no: EM132402485
FNSACC505 Establish and maintain accounting information systems, FNS50217 Diploma of Accounting
Accounting Information System
1.1 Prepare comprehensive specifications based on requirements of potential users that include system objectives, document specifications, and security and records requirements
1.2 Review features of any existing system and records to establish their suitability and usability
1.3 Establish recording processes according to accepted practice and in accordance with legislation and codes of practice
2.1 Compare and measure features of various systems against user requirements to enable identification of alternative systems and solutions
2.2 Carry out cost–benefit analysis of alternative systems and solutions, and document recommendations
3.1 Test system in operational environment to ensure compliance with user requirements, company policy and guidelines, system specifications and relevant legislation or industry codes of practice
3.2 Obtain formal confirmation from all users on acceptability of new system or system changes against all criteria and system specifications
4.1 Prepare system documentation thoroughly and accurately, using easily understood language and in clear format to support system implementation and training
4.2 Consult users to ensure clarity, accuracy, thoroughness and usability of system documentation
4.3 Make system documentation easily accessible, and constantly review and update to ensure currency and accuracy
5.1 Carry out implementation in accordance with specified guidelines and timelines, and establish contingency plans to deal with any potential delays or problems
5.2 Establish effective training schedules and programs to support implementation
5.3 Transfer all data from existing to new or modified system and records without error or loss
5.4 Update systems and records regularly to identify ongoing benefits and threats to organisation
5.5 Maintain files within organisational and statutory requirements, and identify and remedy discrepancies
5.6 Ensure integrity of systems and records complies with organisational and statutory requirements
5.7 Monitor transactions to identify taxation and other liabilities
6.1 Analyse and account for transactions, and correctly relate to accounting period
6.2 Communicate and promote processes for recording and classifying transactions to support internal verification of records
6.3 Standardise sources of input data and documentation in structured formats to minimise errors
6.4 Maintain back-ups in accessible location to safeguard data in accordance with organisational and audit requirements
3.3 Monitor budget variance and seek direction from client or designated person to address variance as required
7.1 Systematically check sources of input data and documentation records for accuracy and reliability
7.2 Establish reporting requirements and analyse regularly to identify variations and compliance with established processes for recording and classifying transactions
7.3 Maintain written reports, explanatory notes and financial results to support source documentation
Assessment Objects
In this assignment you are going to apply your knowledge of Establish and maintain accounting information systems to issues that arise in a real-life working environment.
You will assume the role of a financial services worker employed in an accounting and business advisory firm, working and studying towards your accounting qualification.
Your supervisor has asked you to undertake some research and provide a report on various matters in relation to clients with which he or she is dealing.
It is important to include the explanation for your conclusions and make reference where relevant.
Task 1
Please refer and apply the concepts from lecture materials (available on e-learning) & use search engines to complete the following case study.
Nature of accounting Information System
The accounting information system is used to process business documents to obtain information relating to the financial affairs of the business.
The following diagram illustrates the relationship of the input data contained on business documents, the processing of documents in journals and ledgers and the preparation of the financial statements as output from the system.
All accounting information systems require the existence of a general ledger that processes financial data and reports on the overall financial performance and position of the business at regular intervals. Mr Max is new to business and he does not have any understanding of how Accounting information system works.
In this case as an expert you need to explain the organisational policy and procedures relating to accounting system to Mr Max taking the following flowchart as an example with your understanding.
You are expected to include the following while mentoring Max:
Comprehensive specifications based on requirements of potential users that include system objectives, document specifications, and security and records requirements
Recording processes according to accepted practice and in accordance with legislation and codes of practice
Features of any existing system (Software, Web-based, Spreadsheets etc) and records to establish their suitability and usability
Task 2
Please refer and apply the concepts from lecture materials (available on e-learning) & use search engines to complete the following case study.
The systems Master Plan
Ricky Jones is the owner of a small but developing business that has grown rapidly over the first 12 months. Ricky is concerned that the accounting system that was set up when the business was first established may not be suitable.
Ricky is contemplating a review of the business accounting system.
a. Before he embarks on an analysis of the system what steps should he put in place to ensure that the business will benefit from the review of the system?
b. Also explain what is the difference between an information system and an accounting information system?
Task 3
Please refer and apply the concepts from lecture materials (available on e-learning) & use search engines to complete the following case study.
The systems analysis, system design The purchasing system of the business of XYZ International is going through preparing a master plan
of bringing significant changes.
As an expert in this field, explain the managers working in XYZ International what essential steps is to cover ‘system designing’ highlighting the need for system analysis, system implementation and monitoring.
While guiding you are expected to highlight the following points:
Analyse and account for transactions, and correctly relate to accounting period.
Communicate and promote processes for recording and classifying transactions to support internal verification of records.
Standardise sources of input data and documentation in structured formats to minimise errors.
Maintain back-ups in accessible location to safeguard data in accordance with organisational and audit requirements.
In light with your practical knowledge of system designing – please clearly use examples of devices, inputs and outputs etc.
Task 4
Please refer and apply the concepts from lecture materials (available on e-learning) & use search engines to complete the following case study.
Establishing the general ledger
a. James is preparing a business plan for his first business venture and has asked you to provide him with information in relation to an appropriate accounting information system.
You are required to prepare a short report on various systems against user requirements to enable identification of alternative systems and solutions for James that explains the factors that would be influential in the design of his accounting information system.
You should detail that the Accounting information system should support the following in the report:
cost – benefit analysis of alternative systems (Software: MYOB, QuickBooks, Xero etc, Web- based, Spreadsheets etc)
Carry out implementation in accordance with specified guidelines and timelines and establish contingency plans to deal with any potential delays or problems.
Maintain files within organisational and statutory requirements and identify and remedy discrepancies.
Ensure integrity of systems and records complies with organisational and statutory requirements.
Monitor transactions to identify taxation and other liabilities.
Task 5
Please refer and apply the concepts from lecture materials
(available on e-learning) & use search engines to complete the following case study.
1. Establishing the general ledger
The purchasing system of the business of N. Jones has the following characteristics.
a. The chief purchasing officer undertakes requisitions for stock and purchases of inventory.
b. When goods are received from suppliers the goods are forwarded to the receiving department, checked against the delivery docket then forwarded to the stores department awaiting collection by the department requesting the goods.
c. Incoming goods are taken from the receiving department and place next to the production line.
You are requested to review and explain any weaknesses associated with the purchasing system and establish reporting requirements and analyse regularly to identify variations and compliance with established processes for recording and classifying transactions.
Task 6
Please refer and apply the concepts from lecture materials (available on e-learning) & use search engines to complete the following case study.
a) The AIS produces information to meet needs of external and internal users.
Give two examples of when these needs may overlap, and information produced meets external and internal needs.
b) Management requirements for information will be a factor in setting accounting objectives, reporting schedules and internal control requirements of an organization.
These requirements will then affect the features and characteristics of the accounting information system.
Management requirements may include:
Complete all transactions for a day’s activities by 11 am on the following day.
Complete monthly accounting reports by the 3 rd day of the following month.
All cash transactions must be independently authorised before being processed.
However, each of these requirements will influence the information gathering process and will affect the type and quality of the information the system has available.
Required: List and briefly describe 6 characteristics of the quality and type of information required for an effective accounting system to ensure compliance with user requirements, company policy and guidelines, system specifications and relevant legislation or industry codes of practice.
Task 7
Choose the correct answer of the following questions:
1. AIS is
Select one:
a) Accounting information system
b) Accounts information system
c) Accounting informative system
2. Flowcharting technique is:
Select one:
a) A technique designed to show the accounting information system that relates the input, processing and output components of the system.
b) A technique designed to show the accounting information system in a diagram that relates the input, processing and output components of the system.
c) A technique designed to show the accounting information system as output components of the system.
3. Sales Invoice will be issued:
Select one:
a. When goods are sold on credit
b. When goods are sold on both cash and credit
c. When goods are sold on cash
4. Keyboard and bar code scanner are:
Select one:
a. Output devices
b. Processing devices
c. Input devices
5. There are three main forms of business organisation:
Select one:
a) Sole trader, company & public company
b) Sole trader, company & sole proprietorship
c) Sole trader, company & partnership
6. When a business is established it will need to ensure that its accounting information system:
Select one:
a. includes a balance sheet only
b. Includes a general ledger.
c. is accurate