Accounting Information Systems and Controls

Answer 1

A) Two system analysis and design problems

System analysis can be defined as the ways of solving the problem in the effective manner. It also provides the architecture of the proposed system. In the current environment, the role of the information system has become very important. In the same concern of this, system analysis is a tool that helps to understand the analysis process.

In the other words, system is a set of methods, procedures and routine those are developed to complete the specific activity. At the same time, system design is a process of architecture, components and modules to satisfy specified requirements (Diatmika, el. al. 2016). In the reference of the system analysis, the main problem is found as the involvement of the management.

The information system is developed for the employees to the government office so that there is no need of involvement of management. At the same time, it is also identified that the scope of the project is unclear that is also an issue. At the same time, it is also possible that system analysis and design can also face problem as the documenting the result.

Along with this, it is also identifies that lack of the sufficient experience is one of major problem in the implementation of the system. In order to establish system in the effective manner, the government should conduct the training and development programme (Wijaya, et. al. 2015). It will help the security officers at a Local Government Offices to achieve its objectives.

B) Steps to improve the systems performance and user acceptance

As determined that security officers are getting problem in the systems performance and user acceptance. Due to this, there is a need of taking the some significant steps that will be effective to improve the system performance and user acceptance. For this, local government can conduct a survey in the office to identify the need and requirement of the officers regarding the database system (Worrell, et. al. 2013).

It will help to know the different innovative and effective ideas to apply the database system. At the same time, the local government can also develop and implement the training and development program to make the office to familiar with the database system. By the help of the training and development system, the security officers will be able to operate the system and find out the essential information more quickly. The local government can also consider another system that can minimise requirement of filling out paper form.

For this, both primary system and alternative system can be compared in the terms of the cost, time, advantage and disadvantage. In the same concern of this, the local government can also take a step as appointing a security officer that has sufficient knowledge and experience in using computer (Galliers and Leidner, 2014).

It will be helpful reduce the problem application of the new database system in the security office. Furthermore, the government should also tell the advantage of using the computer to the officer that will help to motivate the officers to use computer at the workplace.

Answer 2

In the business environment, business ethics play a significant role in the in the success of a firm. In this case, a family company is planning to become a public company and is listed on the Australian Security Exchange. But, the main problem is that company does not want to share its financial information and interference of shareholder.

It affects the ethics of the stock market in the negative manner. Along with this, it also indicates to the ethical dilemma in the business process. In the stock market, when a shareholder invests money on a company then first it checks the financial information of the company.

The principle of the stock market also determines that it is essential for an organisation to share the financial information front of the public (Weiss, 2014). In the ethical business activity, a company and its shareholder are liable to do right thing. In the current environment, ethical dilemma has become a significant part of the business firm. An ethical dilemma is also known as the moral dilemmas. It is a kind of situation, where company faces the face of problem in the decision making.

In regard of this case study, it is found that there ethical dilemma is not presented withholding information from shareholders in this situation. It is because that ethic in the context of the public company depicts that it is essential for a public company to share its financial information front of the public (Gostin, et. al. 2014).

Along with this, shareholder also has right to attend the meeting of the company and put their views. But, in this case, company do not want to share financial information with their shareholder. At the same time, the company also wants to avoid the interference of the shareholder.

If, the company will do this, then it will lead the ethical issue because the rule of becoming the public company makes liable the company to share financial information with allowing the shareholder interference. Hence, the situation cannot be called of the ethical dilemma because if, the company is listed in the list of the Australia stock exchange then it has to share financial information. There has not second option for the firm.

On the other hand, the situation of the ethical dilemma represents two options. Hence, it can be said that it is essential for company to share its financial information if it wants to do activity in the stock market (Galliers and Leidner, 2014).

Answer 3

A) Weaknesses in current procedures

In this case, segregation of duties is not effective as the Plant Superintendent is doing multiple tasks such as interviewing and hiring new employees, declaration of tax file record, recording the hourly rate, advising payroll department, etc. It is impacting the performance and the quality of the work done by him which causes different types of errors in the system (Henry, 2016).

Moreover, the Superintendent has verbally advised the payroll department for subsequent pay raises however, it should be in the written format which should be signed by the relevant authority.

In like manner, in the context of the given scenario, it can be analysed that there are weaknesses in the current procedures which are employed by the firm. The failure of the time card system has created the issue additionally, firm has not back-up facility due to which, the payroll clerk not become able to develop the automatic payroll on the basis of the time card system. Cooking Utensils employs time card system as well as manual system too.

Due to the reason of failure of time card system, firm has taken the assistance of manual system to provide the cheque to the employees. Firm utilizes manual as well as automatic system, so that if any problem occurs then they can take the assistance or can tally (Bansal and Narula, 2014).

However, it is increasing the recruitment of the number of employees regarding handling the manual system, which increases the company cost. In like manner, manual system is time consuming too. The current procedure can create various issues which can create threat towards the firm. The issue of improper management in the firm as ineffective segregation of authority increases the pressure on an individual which decreases his efficiency (Moussa, 2014).

Additionally, it will create the situation of irritation, frustration and decreased productivity. In like manner, improper automated management can create the situation of human error from the side of the payroll department which can create a big fuss and can create the situation of employee dissatisfaction too.

B) Ways to improve the Cooking Utensils Company’s internal controls

To improve the Cooking Utensils internal controls over hiring and payroll processing firm primarily needs to delegate the authority in an adequate manner. There should be proper delegation of authority. In like manner, there is a need of back-up system too which will remain supportive to get the back-up if any problem occurs in the context of failure of data access or data corruption (Johnson, Lukaszewski and Stone, 2016).

Moreover, developing employee portal will remain assistive as on the portal employee can enter the details of working hours by entering check-in and check-out time. So, that payroll department can cross-tally it with the time cards. It will minimize the wastage of time and will enable to make the system more effective and error free. In like manner, it will support to eliminate the scenario of extra burden and the payroll clerk can indulge for more productive task (Bansal and Narula, 2014).

In like manner, there is a need of developing the procedure of involving the supervisors of the department in the recruitment process as it supports to hire the job applicants while focusing towards various parameters which are essential to be fulfilled for a particular job position. Focusing towards all the parameters related to payroll and hiring process will remain supportive to control the system of Cooking Utensils in an effective manner.


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Diatmika, I.W.B., Irianto, G. and Baridwan, Z. (2016) Determinants of Behavior Intention Of Accounting Information Systems Based Information Technology Acceptance. Imperial Journal of Interdisciplinary Research, 2(8).

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Gostin, L.O., Lucey, D. and Phelan, A., (2014) The Ebola epidemic: a global health emergency. Jama, 312(11), pp.1095-1096.

Henry, L. (2016) Fraud prevention: an effective control environment can deter or minimize the occurrence of fraudulent activities. Internal Auditor73(2), pp. 17-19.

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Moussa, M. (2014) A Review of Human Resource Information Systems (HRISs) in Organizations. SIU Journal of Management4(1), pp. 1-34.

Weiss, (2014) Business ethics: A stakeholder and issues management approach. UK: Berrett-Koehler Publishers.

Wijaya, R.E., Ludigdo, U., Baridwan, Z. and Prihatiningtias, Y.W. (2015) Paradigm Blurred: Opera Cake in Management Accounting Information Research. Procedia-Social and Behavioral Sciences, 211, pp.859-865.

Worrell, J., Wasko, M. and Johnston, A., (2013) Social network analysis in accounting information systems research. International Journal of Accounting Information Systems, 14(2), pp.127-137.






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