Question 1(50 marks) Using Principle 11 in CoSO, discuss at least 8 controls wit

Question

Question 1(50 marks) Using Principle 11 in CoSO, discuss at least 8 controls with technological significance that can assist as internal controls in an Accounting Information System. Hint: Describe the principle and its associated focus points, then discuss appropriate governance such as procedures, IT governance, infrastructure, IT general controls and so forth. Question 2 (30 marks) Identify and discuss 6 potential users who are compulsory to participate in the development of an Accounting Information Systems. In your discussion, you must include their relevance, importance and contribution to the project The revenue cycle affects the bottom line of the business critically. Hence, there are many threats that could derail a successful cycle. Describe 5 threats that may hinder this sequence and its compensating controls for each threat.

Explanation / Answer

ANSWER-1:

PRINICIPLE-11:

The association chooses and creates general control exercises over innovation to help the accomplishment of goals.

Purposes of Fous:

•Determines reliance between the utilization of innovation in business process and innovation general controls

•Establishes relevant innovation insfrastructure control exercises

•Establishes relevant security administration process control exercises

•Establishes relevant innovation procurement, improvement, and support process control exercises.

ANSWER-2:

potential clients of an authoritative bookkeeping data framework are:-

Importance requires nature of the data to give replies in a given circumstance;

Significance -

Management speaks to the aggregate everything being equal, disciplines, strategies, systems consolidating administration undertakings, administration, organization and association of the organization and goes for invigorating the whole group to work at the greatest benefit, through taking the ideal choices in the plan and modifying of the business forms.

Workers:

For playing out their everyday exercises. Likewise to clarify the intricasies of their activity.

Significance :

It is the job of workers to guarantee that the bookkeeping framework outlined is executed really.

Significance :

So it is simply not that the methodology are set up whether the execution and requirement has been done properly.The bookkeepers while being engaged with the implemtation procedure may find a usage issue that non bookkeepers may discover troublesome imparting back to the framework planners.

Proprietors:

For breaking down the reasonability and benefit of their speculation and deciding any future strategy.

Importance :

As bookkeepers gets more engaged with the general basic leadership from business point they are delegated clients of bookkeeping data framework.

Significance :

The proprietors need a decent learning of the general basic leadership .So they need the learning to make quality money related examination from the budgetary data.

Care Staff:

Because they are the ones that are required to help enhancing the framework and support with the framework glitches.

Relevance:

The bolster staff are critical to the making to the advancement of the new framework as it is required for the money related working of the business

Significance :

These staff assume a fundamental job with regards to the usage and support in the midst of execution and applicable data gathering for the higher administration.

Topic Expert: SME's are essential as they need to watch that the programing is finished by the idea and standards of bookkeeping.

Importance :

A SME can go about as mentor, peer-commentator, approver, or learning sharer. He can even help outline the design of a framework. The SME's job can be effortlessly jumbled, tangled, or decreased if the task does not find a way to guarantee that the SME comprehends her duties.

Significance :

SME have very much characterized undertakings, expectations, and due dates. With a specific end goal to expand her efficiency, before touching base to an occasion, the SME ought to have had the chance to make inquiries about her job to guarantee that she comprehends it plainly.

ANSWER-3:

1) Sales to clients with poor credit -

What great deals can do in the event that they are not ready to create money streams and simply more turn Bad, the organization would'nt ready to emerge any income if the customer has a poor reputation and isunable to pay Controls: Having a free credit endorsement work and keeping up great client bookkeeping can avert issues.

2)Stockouts:

Conveying expenses, and markdowns are a danger in the business arrange passage process. The issue with stockouts is that when products are not accessible to ship to clients, the business dangers losing the deal to a contender that can give the merchandise in an opportune way. The contrary issue can likewise happen where overabundance stock increments conveying costs, with the outcome that markdowns might be vital so as to offer the stock. Two controls can be executed to adapt to this danger. One control that can be instituted is to build up exact stock control.Periodic physical checks of stock will likewise confirm the unending sums recorded by the AIS. Another imperative control in this circumstance is that of precise deals guaging. Appropriate showcasing endeavors ought to be made related to frequently assessing deals estimates for exactness.

3)Failure to charge clients and Billing mistakes -

Making deals without issuing a business receipt or issuing a deal receipt with a sum not as much as the sum acquired ,and so forth indicate misrepresentation in thecompany.the incomes get affeted thusly Controls: Separating transportation and charging and pre-numbering of delivery reports helps alongside compromise of all business records , Reconciliation of picking tickets and bills of filling with deals orders; information section alter controls; and value records may forestall charging blunders.

4) Theft of money -

Segregation of obligations is basic to keep this major issue (the accompanying obligations ought to be isolated: taking care of money and presenting on client accounts; taking care of money and approving credit reminders and alterations; issuing credit notices and keeping up client accounts); utilization of lockboxes for receipts and EFT for payment; mailing client articulations month to month; utilize trade enlists out retail tasks where money installments are gotten; store trade day by day out the bank; and have the bank compromise work performed by free outsiders.

5) Posting blunders in refreshing records receivable -

Hiring of expert for upkeep and refreshing the records is vital on the grounds that an organization should know its indebted individuals for legitimate receovery and reconcilitation of records Controls: Use of altering and clump aggregates is basic here.

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