Reference no: EM132341191

Question 2 Retail operations

This question continues on from question 1 above.

It is now January 2019, and Mr and Mrs Spot have been very busy growing the business of Spottie Ltd over the last year. The business now stocks 20 inventory lines, and employs three full-time staff.

After using a manual accounting system in Excel for SpottieLtd's business, Mr and Mrs Spot have come to you for advice as they consider moving to a computerised accounting system. They believe that they have been spending too much time preparing the accounting records, and a friend recommended that they make the move to ‘Xero' - an online accounting system.

Undertake some research into cloud-based accounting systems, and the ‘Xero' cloud-based accounting system.

Required:

Prepare a business report (for the directors of Spottie Ltd) on cloud-based accounting systems (explaining what they are and how they work), and the suitability of the Xero cloud-based accounting system to SpottieLtd's business. In your discussion, explain how a computerised system like Xero can help the business track and account for inventory. Also highlight three other useful features of Xero that will be beneficial to Mr and Mrs Spot as they seek to save time preparing their accounting records, and monitor and grow their business further. Note: You must reference using the APA referencing format, and include a reference list at the end of your report.

(Word count: 1000-1500 words)

Question 3

Internal controls - cash

This question continues on from question 1 and question 2 above.

It is now January 2020, and Mr and Mrs Spot have been very successful in growing the business of Spottie Ltd over the last 2 years. The business now stocks over 200 inventory lines, and employs six full-time staff.

As the business continues to grow, you strongly encourage Mr and Mrs Spot to review internal controls over cash receipts and cash payments in the business, to safeguard the business's money.

Mr and Mrs Spot are not overly concerned, as they have never had any issues with cash going missing or being stolen in the past.

Required:

Undertake some research online, looking at cases of employee fraud and/or supplier fraud in Australia. Prepare a letter to Mr and Mrs Spot - discussing the importance of internal controls, and addressing the following:

• Provide a brief overview of 2 recent cases of employee and/or supplier fraud in Australia, explaining how money was stolen from the business. Explain what internal controls could have been implemented to reduce the risk of the fraud occurring.

Include a copy of an article relating each case with your letter (or provide website links to the articles in your letter) for Mr & Mrs Spot to review;
• To help Mr & Mrs Spot as they consider reviewing internal controls, outline three internal controls over cash receipts and three internal controls over cash paymentsthat can be implemented in their business immediately. In your discussion, explain how each of these controls helps to reduce the risk of fraud or theft.

Question 5

Property, plant and equipment

Storm Ltd acquired an item of equipment on 1 July 2016 at a cost of $800,000. On 30 June 2017, Storm's directors decide to continue using the cost model for equipment. They elect to depreciate the equipment acquired on 1 July 2016 using the straight-line method, over its
useful life of five years. The estimated residual value is $40,000.

The remaining useful life is revised on 1 July 2018 - estimated to be six years from 1 July 2018. The estimated residual value is also revised on this date - to $50,000. The item of equipment is sold on 31 December 2019 for $500,000.

Required:

Prepare journal entries to account for all transactions that took place during the period 1 July2016 to 31 December 2019, including entries for the acquisition of the equipment, depreciation for each year, and its disposal. Show all relevant dates, narrations and workings.