This project gives you an opportunity to develop a system implementation, monitoring, and review plan for a newly purchased Accounting Information System (AIS) for a local garment wholesale company. As an accounting professional and the project leader, you are required to implement this new AIS, monitor and review this system. Finally, you have to report the management on whether this new AIS will be adopted.
In this project, you are going to make a proposal on how to implement, monitor, and review this new AIS. You have been asked to provide an informational session to management team about your proposal.
Note: This project can be completed individually or in teams of two to four members. The project will be completed by submitting a written proposal (1500 words) and a minimum 10 slides PowerPoint presentation slides. You will be required to present in the class at the end of Week 3.
Consulting Project Proposal Checklist
* Learners and assessor should refer to the assessment evidence checklist & record as below:
Assessment Task 3 Assessment Evidence Checklist & Record
Learner’s ID: ______________________
Learner’s Name: ___________________________________
|Performance & Knowledge Evidence||C/NYC||Comments|
|Identify and document record and systems requirements|
|Prepare systems documentation and implement reporting systems and records that comply with:
ü statutory requirements
ü organisational policy and procedures Knowledge Evidence
|Monitor and review reporting systems|
|Outline the key features of statutory requirements, codes of practice and organisational policy and procedures relating to accounting systems|
|Discuss ethical considerations for the handling of financial reconstruction|
|Explain the key features of financial legislation relating to taxable transactions and reporting requirements|
|Outline a range of considerations for developing accounting system specifications|
|Compare and contrast methods of data protection|
|Explain the key principles and practices of budgetary control and implications for accounting systems|
|Explain the process and procedures for recording and storing financial data|
|Signed by Learner:
|Signed by Assessor:
This proposal depicts the importance of developing the Accounting Information system in a local garment wholesale Company in order to gain effective revenue and competitive advantages as well. The role of the project leader and accounting professional is to define proper implementation, monitoring and review plan for developing the Accounting Information System for the Garment Company.
If the project manager fails to meet the requirements accurately then the project the different security oriented risks will occur those are needed to be mitigated at the same time. However, in order to resolve the issues certain AIS implementation, monitoring review standards are needed to be followed by the project manager and project team members. After analyzing the details of AIS requirements a set of recommendations and ethical considerations those should also be adopted by the project manager are also elaborated in this proposed.
1. Identification and documentation of record and system requirements
1.1 Statutory requirements
In order to develop AIS for any company it is necessary for the project manager to consider the statutory requirements. The corporate internal control legislation system eventually demands for AIS and currently revising different laws (38/2005, 231/2001, 262/2005). AIS are legal requirement in order to comply with tax regulations (Laudon and Laudon 2016). It is viewed as a source of information to take superior and timely business related decisions. In order to understand the details of AIS legal requirements an AIS framework is also developed. The system complexity will also be minimized with the adoption of proper legal requirements. The software to be used for the AIS system must have proper license (Uyar, Gungormus and Kuzey 2017). The information can be processed easily if accurate legal entities are considered.
1.2 Organizational policy and procedures
In order to outline the course of different actions for dealing with the issues organizations use policy and procedures. The way through which the company wish to behave can be formulated with the help of policies o the other hand the procedure defined the step by step activities to be performed to implement the AIS (Lipi, Rama and Agaraj 2015). During planning and implementation of AIS for local garment shop the standard policies and procedures that should be followed by the project manager are as follows:
The employees of the garment store must identify themselves as two factor identification process. For maintaining the security of the project team members accurate biometric scanning approach is need to be adopted (Wong and Wong 2017).
2. Monitoring review reporting systems
Different tools and techniques are available those are widely used for monitoring the AIS. In order to monitor the AIS, the followings are the phases those have been proposed:
In order to review the system, its functionalities and other operations are needed to be reviewed and the elements on the basic of which the system must be reviewed are as follows:
Efficiency: The system is needed to be faster and efficient than the traditional account management system. With the help of the AIS the users will be able to access information regardless of their location and time from the server with high profile security (Abduljalil and Zainuddin 2015). The accounting information systems are found to be much affordable due to its lower hardware cost, automatic scanning ability, easy availability and cheaper user friendly application. The rate of man made errors also get reduces with its application.
Cost effectiveness: Many accounting software package providers are available in the market and from the functionalities of the software it is found that software does most of the works therefore; the manpower requirement also decreases. The operations those could be served by the software include billing, budgeting payroll as well (Sularto 2016). Due to security the cost estimated for issue maintenance are also decreased.
After analyzing the system and its operational abilities it has been found that, for the local garment store accounting Information system can be installed.
3. Key features of accounting Information system
4. Ethical consideration for financial reconstruction
5. Comparison and contrast between different data protection method
Encryption: In order to maintain the data confidentiality proper encryption algorithm is needed to be adopted by the project manager (Napitupulu 2015). Due to absence of encrypted code and decrypted code none of the unauthenticated user will be able to access data from the server.
Firewall: Two or more than two methods for firewall security are needed to be followed in terms of application gateway, packet filtering, dynamic packet filtering etc.
Strong password: A strong password should be set by the system developer to keep the system security. The password strength must ensure that it cannot be accessed easily by any user.
6. Explanation of the process and procedures to store and recording financial data
The processes those are generally used for storing and recording the financial data inclue the followings:
7. Potential problems and difficulties
The issues are associated to the accounting information system are as follows:
Problems to the non-trained: As AIS holds different advanced technical features thus sometimes it found to be difficult for the non trained employees to use such system efficiently (Fang and Shu2016). Additionally, earning such system are often found to be time consuming and difficult as well.
Data loss: While transmitting data from sources to the storages or even during data access, information might be lost due to lack of managerial features. If confidential data are hijacked then those could be misused.
From the overall discussion it can be concluded that in order to minimize the issues of financial risks currently most of the small to medium companies are adopting Accounting Information system for managing large set of data without loss or external interruption. With the usage of software based AIS data processing become easier for the companies. It can compile the financial, payroll data and tax without any kind of error. Additionally other bookkeeping functionalities could also be served with the help of the AIS. AIS are also capable to collect and process transaction data distribution to help the decision makers for taking company decisions. From the key features of the system it can be said that, adoption of the AIS for the local garment shop is enough beneficial.
Training and development program: In order to ensure that the employees are capable to handle the newly developed AIS, proper training and development programs are needed to be organized by the project manager and system developer.
Resource usage: The project managers are needed to utilize proper resource in terms of human, financial and physical as well.
Security approaches: The AIS must have accurate security approaches in terms of firewall, encryption and password to make sure that the confidentiality of the company is being maintained accurately.
Abduljalil, K.M. and Zainuddin, Y., 2015. Integrating Technology Acceptance Model and Motivational Model towards intention to adopt accounting information system. International Journal of Management, Accounting and Economics, 2, pp.347-539.
Collier, P.M., 2015. Accounting for managers: Interpreting accounting information for decision making. John Wiley & Sons.
Fang, J. and Shu, L., 2016. Modern Accounting Information System Security (AISS) Research Based on IT Technology.
Laudon, K.C. and Laudon, J.P., 2016. Management information system. Pearson Education India.
Lipi, I., Rama, R. and Agaraj, X., 2015. Implications of Accounting Information System Implementation in SMEs: A Study on Retail Business in Vlore Region. Mediterranean Journal of Social Sciences, 6(3), p.553.
Mirzaey, M., Jamshidi, M.B. and Hojatpour, Y., 2017. Applications of Artificial Neural Networks in Information System of Management Accounting. International Journal of Mechatronics, Electrical and Computer Technology, 7, pp.3523-3530.
Napitupulu, I.H., 2015. Impact of Organizational Culture on the Qualty of Management Accounting Information System: A Theoritical Approach. Research Journal of Finance and Accounting, 6(4), pp.74-83.
Roni, M. and Saiyidi, M., 2015. An analysis of insider dysfunctional behavours in an accounting information system environment.
Sularto, L., 2016. Refinement and user acceptance test of accounting information system for restaurants SMEs. Journal of Internet Banking and Commerce, 21(2), p.1.
Uyar, A., Gungormus, A.H. and Kuzey, C., 2017. Impact of the Accounting Information System on Corporate Governance: Evidence from Turkish Non-Listed Companies. Australasian Accounting Business & Finance Journal, 11(1), p.9.
Wong, H. and Wong, R., 2017. Students’ Perceptions on Studying Accounting Information System Course. International Journal of Business Administration, 8(2), p.1.
Zakaria, W.Z.W., Ilias, N. and Wahab, N., 2017. A Survey on the Impact of Accounting Information System on Tasks Efficiency: Evidence from Malaysian Public Sector Agencies. International Review of Management and Marketing, 7(1).