...INFS7004 Accounting Information Systems Lecture 4 Transaction Cycles: The Revenue Cycle 1 The Conceptual System The Revenue Cycle The revenue cycle is the set of activities in a business which brings about the exchange of goods or services with customers for cash. Most business transactions are conducted on a credit basis. Cash is received after goods are shipped to the customer. 2 Sales Order 1 Credit / Customer Service 2 REVENUE CYCLE (SUBSYSTEM) Cash Receipts/ Collections 6 Shipping 3 Billing/ Accounts Receivable 4/5 Journal Vouchers/Entries: How do we get them? Billing Dept. prepares a journal voucher: Accounts Receivable Sales DR CR Inventory Control Dept. prepares a journal voucher: Cost of Goods Sold Inventory DR CR Cash Receipts Dept. prepares a journal voucher: Cash Accounts Receivable DR CR 4 Sales Order Procedures Sales order procedures include the task involved in receiving and processing a customer order, filling the order and shipping products to the customer at the proper time, and correctly accounting for transaction. 5 Receive Order At this point, sale process begins indicating the type and quantity of merchandise desired by customer. It may or may not be a physical document Orders may arrive by mail, by telephone, or from a field representative who visited the customer After creating the sales order, a copy of it is placed in the customer open order file. 6 Check Credit For...
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...DATABASE DESIGN Research Paper You are to write a research paper about an approved topic in the field of Information Technology (IT) Management, preferably in the area of Database Systems. The topic must be of current interest to the IT professionals. The deadline for the topic approval is September 20. You must turn into me one page (single-spaced) ‘Abstract’ of your paper by that date. A partial list of journals which publish articles pertaining to the IT area is attached. These publications are some of the source for your research work. Your paper must be between 12 and 15 pages of typed, doubled-spaced text, not including your references and any appendices or attachment. Plagiarism will result in a grade of zero. Your research paper is due on November 29. It will be graded according to the criteria on the attached page Suggested Structure of Research Paper Abstract: Half-page (single spaced) summary of the paper I. Introduction: - Problem Background -Problem Importance - Purpose and contents of this paper i. Target audience of the paper ii. Overall objective iii. Within the overall objective, the specific issues or question addressed in the paper iv. A precise statement of the content of the paper v. Scope and limitation of the paper vi. Usefulness of the paper - How would the target audience...
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...Overview Purchase processing and cash disbursements procedures constitute the expenditure cycle for most retail, wholesale and manufacturing organizations. Purchase processing procedures Purchases procedures include the tasks involved in identifying inventory needs, placing the order, receiving the inventory and recognizing the liability. In general, these procedures apply to both manufacturing and retailing firms. It differs only in the way purchases are authorized. | Manufacturing firms | Merchandising firms | Purchase authorization | Production planning and control function | Inventory control function | Monitor inventory records The inventory control monitors and records finished goods inventory levels, when inventories drop to a predetermined reorder point, a purchase requisition is prepared and sent to the prepare purchase order function to initiate the purchase process. Prepare purchase order The prepare purchase order function receives the purchase requisitions, which are sorted by vendor if necessary. Next, a purchase order (PO) is prepared for each vendor. A copy of the PO is sent to the vendor. In addition, a copy sent to the set up of accounts payable (AP) function for filing temporarily in the AP pending file and a blind copy is sent to the receive goods function, where it is held until the inventories arrive. The last copy is filed in the open/closed purchase order file. Receive Goods The next event in the expenditure cycle is the receipt of the...
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...be successful, it is essential that the management team take steps to identify, access and manage risk. For many businesses, risk management has been identified as a way to thwart and reduce losses, as well as develop business performance. A collection of new tools have been introduced over the past few years to help measure enterprise risk. The Committee of Sponsoring Organizations of the Treadway Commission (COSO) has also played a major role in helping companies manage risk. COSO was formed in 1985 and is a U.S. private sector initiative whose major goal is to identify the different factors that lead to fraudulent activities such as fraudulent financial reporting and make recommendations to reduce the incidences. COSO established a variety of internal controls and criteria that companies and organizations can use to assess their control systems in order to manage risk. “In 2001, COSO initiated a project, and engaged PricewaterhouseCoopers, to develop a framework that would be readily usable by managements to evaluate and improve their organizations’ enterprise risk management” (COSO Executive Summary, 2004). Based on the many COSO recommendations of risk management, many companies and businesses have implemented enterprise risk management techniques within their organization. The goal of this paper is to summarize a plan to apply enterprise risk management for New Mexico Solutions. “The underlying principle of enterprise risk management is that every entity exists to provide...
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...OF FINANCIAL MANAGEMENT 2 II. PERTINENT POLICIES 2 III. INTERNAL CONTROL 2 A. Overview of Internal Control 3 B. On-the-Job Application of Internal Controls 4 1. Records Management 4 2. Source Documents: Organization and Filing 5 3. Develop Departmental Procedures for Each Financial Process 7 4. Detailed Procedures for Cash Handling 10 5. Perform a Series of Daily, Weekly, Monthly, and Quarterly Tasks 10 6. Provide Regular Reporting to Management 14 7. Know Pertinent Campus Policies, Procedures, Regulations and Resources 14 CHAPTER 3 – RESPONSIBILITIES OF FINANCIAL MANAGEMENT The purpose of this chapter of The Guide is to provide information about administering departmental finances. This section notes significant policies and procedures, provides an overview of internal control, gives suggestions for getting organized and ready to work, and provides a checklist of periodic tasks to complete. PERTINENT POLICIES As noted in Chapter 2 of The Guide, departmental financial management must be done in accordance with University of Colorado and Boulder campus policies. The following three policies are of critical importance: ▪ Fiscal Roles and Responsibilities ▪ Program Management and Fiscal Control Responsibility ▪ Fiscal Code of Ethics The Fiscal Roles and Responsibilities Policy establishes the duties associated with key levels of management personnel, so...
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...Chapter 1: Assurance services: 认证业务 Independent professional services that improve the quality of information for decision makers. Attestation services: 鉴证服务 A type of assurance service in which the public accounting firm issues a written communication that expresses a conclusion about the reliability of a written assertion of another party. Audit of historical financial statements: A form of attestation services, the auditor issues a written report expressing an opinion about whether the F/S is in material conformity (一致) with accounting standards. e.g.: listed company must provide shareholders with annual financial statements that are audited by an independent accounting firm. Review of historical cost financial statements: A form of attestation services, a public accounting firm issues a written report that provides less assurance than an audit as to whether the financial statements are in material conformity with accounting standards. Auditing standards: Establish mandatory (强制) requirements and provide explanatory (解释) guidance to auditors in fulfilling their professional responsibilities in the audit of financial reports. Auditing: Is the accumulation and evaluation of evidence about information to determine and report on the degree of correspondence between the information and established criteria. Auditing should be performed by a competent, independent person. Compliance audit: 合规性审计 One of three primary types of audits, a review of an organization’s financial records...
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...Statistical Databases Jaideep Srivastava and Hung Q. Ngo, Department of Computer Science, University of Minnesota, 200 Union street, EE/CS Building, room 4-192, Minneapolis, MN 55455 e-mail: srivasta, hngo @cs.umn.edu, ¡ 1 Introduction A statistical database management system (SDBMS) is a database management system that can model, store and manipulate data in a manner well suited to the needs of users who want to perform statistical analyses on the data. Statistical databases have some special characteristics and requirements that are not supported by existing commercial database management systems. For example, while basic aggregation operations like SUM and AVG are part of SQL, there is no support for other commonly used operations like variance and co-variance. Such computations, as well as more advanced ones like regression and principal component analysis, are usually performed using statistical packages and libraries, such as SAS [1] and SPSS [2]. From the end user’s perspective, whether the statistical calculations are being performed in the database or in a statistical package can be quite transparent, especially from a functionality viewpoint. However, once the datasets to be analyzed grow beyond a certain size, the statistical package approach becomes infeasible, either due to its inability to handle large volumes of data, or the unacceptable computation times which make interactive analysis impossible. With the increasing sophistication of data collection instrumentation...
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...the increased protection of whistleblowers that the act now provides many are now incentivized to report wrongdoing. As a result, it would behoove executives to institute a corporate compliance program and code of ethics. This was a very informative paper which provides insight into how senior management must set the tone for the organization in the standard of ethics and what is tolerated when any wrongdoing may occur. Frey, Kelly L., Taney, Francis X., Wucher, Robert. “The Top Five Tips Every Technology Executive Needs to Know About Sarbanes-Oxley.” Exec Blueprints (2008): Print. The authors, two of whom are lawyers and the other an IT executive, provide a high-level, summary overview of the Sarbanes-Oxley Act of 2002, and how it relates to decisions that every IT executive within a public company must make. Much of this document is centered on section 404 of the act, which details regulatory compliance language that these firms must now abide by. Information security systems and management must design IT systems that comply with section 404. This is a very informative article geared towards executives who must have an understanding of the IT security and compliance systems and processes required by Sarbanes-Oxley. Moore, Frank, Swarz, Nikki. “Keeping an Eye on Sarbanes-Oxley.” The...
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...Cost/Managerial course. I do emphasize the need for good ledger control over property, plant, and equipment. THE PRODUCTION BUSINESS PROCESS Production Planning and Control. A sales order or sales forecast cause the creation of production orders which specify items that should be produced. Materials are requisitioned and production is scheduled. Items are produced, inspected, transferred to finished goods inventory, then transferred to shipping to complete the process. Basic production requirements are provided by the bill of materials and master operations list. Resources available for production are communicated to the production control function through inventory status reports and factor availability reports. The production order serves as authorization for the production departments to make certain products. Materials requisitions are issued for each production order to authorize the inventory department to release materials to the production departments. Production status reports are periodically sent from the production departments to the production control function. Cost Accounting Controls. Job costing is a procedure in which costs are distributed to particular jobs or production orders. In process costing, costs are compiled in process or department accounts by periods (day, week, or month).The cost accounting department is responsible for maintaining a file of WIP cost records. Inventory Control. The control of inventories is accomplished through a series of inventory...
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...Performance: A Meta-Analysis, in Organization Studies, 2003; 24; 403-441 2) E J Walton, The Persistence of Bureaucracy – A Meta-Analysis of Weber’s Model of Bureaucratic Control, in Organization Studies, 2005; 26; 569-600 Organisational Design is concerned with constructing and changing an organisation’s structure to achieve the organisation’s goals. In order to understand organisation, we have to look at the two dimensions; structural and contextual. Structural dimensions provide labels like formalization, specialization, hierarchy of authority, centralization, professionalism and personnel ratios, to describe the internal characteristics of an organisation, and they create a basis for measuring and comparing organisation. Whereas contextual dimensions, they characterize the whole organisation, including its size, technology, environment and goals, and also describe the organisational setting that influences and shapes the structural dimensions. For some time, researchers have studied the relationship between a firm’s corporate financial performance (CFP) and its corporate social performance (CSP). Although many studies indicated that CSP is a determinant of CFP, other aspects of some research have been inconsistent. Some studies are criticized for using unrealizable CSP measures; others for missing control variables; and still others for assuming linearity without valid testing. CSP has been most frequently defined as “a business organisation’s configuration of principles...
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...The International Journal of Digital Accounting Research Vol. 1, No. 1, pp. 47-68 ISSN: 1577-8517 Risks and Controls in the Implementation of ERP Systems Severin V. Grabski. Michigan State University, U.S.A. grabski@pilot.msu.edu Stewart A. Leech. The University of Melbourne, Australia saleech@unimelb.edu.au Bai Lu. Colonial Mutual Group, Australia blu@colonial.com.au Abstract. The implementation of ERP systems has been problematic for many organizations. Given the many reports of substantial failures, the implementation of packaged ERP software and associated changes in business processes has proved not to be an easy task. As many organizations have discovered, the implementation of ERP systems can be a monumental disaster unless the process is handled carefully. The aim of this study is to identify the risks and controls used in ERP implementations, with the objective to understand the ways in which organizations can minimize the business risks involved. By controlling and minimizing the major business risks in the first instance, the scene can be set for the successful implementation of an ERP system. The study was motivated by the significance, for both the research and practice communities, of understanding the risks and controls critical for the successful implementation of ERP systems. Following the development of a model of risks and controls, a field study of an ERP system implementation project in an organization was conducted to provide a limited test of the model...
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...International Journal of Engineering and Technology Innovation, vol. 3, no. 3, 2013, pp. 134-143 A Case Study Improvement of a Testing Process by Combining Lean Management, Industrial Engineering and Automation Methods Simon Withers1, Jose Arturo Garza-Reyes2,*, Vikas Kumar3, Luis Rocha-Lona4 1 2 3 4 Turbo Power Services, Bardon, UK. Centre for Supply Chain Improvement, The University of Derby, Derby, UK. Dublin City University Business School, Dublin City University, Dublin, ROI. Business School, National Polytechnic Institute of Mexico, Mexico City, Mexico. Received 04 April 2013; received in revised form 25 April 2013; accepted 26 May 2013 Abstract Increasingly competitive market environments have forced not only large manufacturing, but also smalland-medium size enterprises (SME) to look for means to improve their operations in order to increase competitive strength. This paper presents an adaptation and adoption by a UK SME engineering service organisation, of lean management, industrial engineering, and automation metods developed within larger organisations. This SME sought to improve the overall performance of one of its core testing processes. An exploratory analysis, based on the lean management concept of “value added” and work measurement technique “time study”, was developed and carried out in order to understand the current performance of a testing process for gas turbine fuel flow dividers. A design for the automation of some operations of the testing process...
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...Executive summary Table of content (a) Explain the audit risk and each component of the audit risk model and how the audit risk works Audit risk is the auditor might give an incorrect or inappropriate opinion the financial statements. (Taylor, 2008). The audit risk model expresses the relationship among the audit risk components as follows: PDR = AAR IR x CR PDR = planned detection risk AAR = acceptable audit risk IR= inherent risk CR= control risk The four risks in the audit risk model are appropriately important to valuable detailed discussion. All four risks are discussed briefly in this section o provide an overview of the risks. Planned detection risk (PDR) is a measure of that audit evidence for a segment will fail to detect misstatements exceeding an acceptable amount, should such misstatements exists. (James, 2001) PDR is a function of the effectiveness of an audit test and of its application by the auditor. Decreases in PDR will require the auditor to increase the competence and sufficiency of audit evidence collected. (Taylor, 2008). Inherent risk (IR) represents the auditor’s assessment of the susceptibility of an assertion to a material misstatement assuming there are no related internal controls. (Boynton, 2001). If the auditor concludes that there is a high likelihood of misstatements, ignoring internal control, the auditor would conclude that inherent...
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...AN EVALUATION OF THE INTERNAL CONTROLS SYSTEM FOR CASH FOR THE CASE OF NAIROBI SMALL BUSINESSES BY CLEOPHAS MUSINGA A Management Research Project Submitted In Partial Fulfillment For The Requirements Of The Award Of Bachelor Of Commerce (BCOM), School Of Business, University Of Nairobi JULY, 2008 DECLARATION This research project is our own original work and has not been submitted for academic purposes in any institution of higher leaning. Name Number Sign CLEOPHAS MUSINGA D33/6646/05 ………………………….. This research project has been submitted for examination with my approval as the university supervisor Signed……………………………. Date…………………………………………. Mr. Abdulatif Essajee Lecturer University of Nairobi TABLE OF CONTENTS DECLARATION i CHAPTER ONE 1 INTRODUCTION 1 1.1 Background of the study 1 1.2 Statement of the problem 5 1.3 Objectives of the study 6 1.4 Research questions 6 1.5 Scope of the study 6 1.6 Justification of the study 7 CHAPTER TWO 9 LITERARURE REVIEW 9 2.1 Evolution of internal controls 9 2.2 Components of Internal Controls 12 2.4 Relationship between a firm’s age and internal control 18 2.6 Internal controls in small businesses 19 CHAPTER THREE 21 RESEARCH METHODOLOGY 21 3.1 Research design 21 3.2 Population 21 3.3 Sample and Sampling Technique 21 3.4 Data collection methods 22 3.5 Data analysis 22 CHAPTER FOUR 23 DATA ANALYSIS AND FINDINGS 23 4.1 Introduction...
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...software. The purchase price for Peachtree ranges from varying on the size of the business and its specialty in the industry. For example, Peachtree complete accounting 2012 software for a small business costs $299.99. However, Peachtree Premium Accounting for Distribution 2010 will cost a company $1199.99. This does not include any extras added in; this is just the base price for if a company purchased the software online and no installation costs have been added as well. All Peachtree products can be viewed on websites to include amazon.com, bizrate.com and simply by searching Peachtree in a search engine. In order for Peachtree software to work properly on business computers, there are a few requirements for the operating system. “All versions except Peachtree Quantum require the minimum of a 1 GHz Intel Pentium III or equivalent for both single and multiple users. The Peachtree Quantum, however, requires the minimum of a 1.8 GHz Intel Pentium 4 or equivalent...
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