Reference no: EM132167932

Question 1

1. Explain whether Johnny Wright's statement is correct: ‘Once the system is acquired then the business can get back to normal and do what it does best - take photos - without having to spend money on IT'.

2. One option for HurstTrails Co. is to purchase and implement an SAP ERP system. SAP-ERP system is one of the world's largest and most expensive and sophisticated software systems, which integrates all business processes, including the accounting processes. Considering from a strategic viewpoint, do you recommend HurstTrails Co. to replace MYBP with SAP-ERP? Justify your answer.

3. Consider an Application Service Provider (ASP) and other outsourcing methods. Which of these methods would be the best choice for HurstTrails Co. to limit the cost of maintaining the system once it is in place within the organisation? Why?

4. Would you recommend that HurstTrails Co. develop or buy the new system? Why?

5. Describe the process that HurstTrails Co. could use for selecting a vendor for the new system.

6. Identify three possible consequences for HurstTrails Co. of relying on a single vendor for the system?

Question 2

Prepare a report comparing two accounting software packages
1. Xero
2. SAP

Question 3

William Pitt is preparing the income tax return of a client who has earned more income than expected. On 2 July, the client pays for advertising and asks William to backdate the expense to the preceding financial year, which ends on 30 June. Backdating the deduction would lower the client's immediate tax payments. After all, there is a difference of only two days between 2 July and 30 June. This client is important to William. What should he do?