Reference no: EM132839701

Question -

A. This year you obtain a new client, Lee Corporation, a regional distributor of appliances. Before becoming your client, Lee had installed a microcomputer-based accounting system to handle its receivable, payables general ledger and payroll. Lee purchases its microcomputer with off-the-shelf software and appears very pleased with it. You notice that the computer sits on the bookkeeper's desk. You ask Christian Lee, the president, about his feelings about the computer system, and he states:

"The system is absolutely great. It has already saved us a lot of time and money. I get reports when I want them, not days later. In fact, it is so good, why don't you try it? The password is LEE. You can go ahead and use it. If you want any backup files, they are stored in the supply room. We sure saved a lot of money by purchasing the system from a mail-order operation. A system analyst wanted P15,000 to help pick the best system for us, and a local dealer wanted P11,000 more for comparable hardware and software."

Required - What are your concerns about the system that Lee uses?

B. Mr. Pedro, owner of department store, wants to convert from manual to computerized system since his store is getting bigger due to the increase of demand as well as his potential customers. He thinks by the use of computerized system. It is way better than before where he only used the manual system.

Required - What major differences would you expect to find in a client's organization structure and transaction processing when the client converts from a manual to a computerized system? What would be the possible result or outcome of it?