INFS2005 Accounting Information Systems
Research School of Accounting and Business Information Systems Group Assignment (Due on 6 May 2014)
20% of overall assessment
The objectives of this assignment are to assess your knowledge in (1) systems documentation; (2) analysis of internal controls; and (3) business process re-design.
To complete this assignment, you should form groups of five to six (5‒6) students. We will not adjust the assignment marks according to the size of the group. Technically speaking, a large group can “gain” an advantage. (We do have a policy to penalise non-participative group members. Please refer to the section Grading on page 3 in this document.) We do not allow students to form groups of seven. If you have a group of seven, we recommend you to split it into two groups. We strongly disagree that students try to complete this assignment individually.
In this assignment, you are given a business case (see pages 6‒7 for the narration). The business case describes an inefficient revenue process at Excellent Cycle Company.
Task 1. Systems Documentation (8 marks)
Your first task is to document this process with data flow diagrams (DFDs). Lectures 3‒5 describe three kinds of DFDs: context diagrams, physical DFDs, and logical DFDs. In this assignment, you are asked to develop (i) a structured narration, i.e., a table of entities and activities, (ii) a context diagram, (iii) a physical DFD, and (iv) a level-0 logical DFD with more than three (> 3) bubbles, for the given process. In other words, you are not required to develop level-1 logical DFDs.
The lecturer suggests students use the following table structure to develop a structured narration. It is optional for students to include the columns, INPUT and OUTPUT, in this table.
Note: The number of words in the structured narration table is not included in the overall word count of this assignment.
If you need more information on systems documentation, please refer to the lecture recording (Lectures 3‒5) and the textbook Chapter 5 (3rd Eds) or Chapter 6 (4th Eds). Your assignment must be drawn using a computerised drawing package. On page 5 in this handout, you can find the section Suggestions regarding Electronic Drawing Facilities that shows a list of downloadable licensed drawing tools. Or you can develop diagrams with circles and arrows with Microsoft Word.
Task 2. Internal Controls (6 marks)
Your second task focuses on internal controls. You are asked to identify (1) the weaknesses of segregation of duties, and (2) three missing application controls, of the given process. Regarding (1), you are asked to write (approximately) 500‒700 words to point out the weakness of segregation of duties in the current process. Please note that you should present your idea in complete sentences and in paragraphs. In Task 2, you are not asked to discuss how to improve the current process. The improvement of the current process is part of Task 3. Regarding (2), you are asked to develop a table to describe three application controls which are missing from the given process, and elaborate the potential problems caused by these missing controls. Here I give you two examples of missing application controls: Missing application controls
(A) The use of standardised form for customer orders
According to the narrative, customers send their orders via mail. Customers may write their orders on a piece of blank paper. Some of them may fail to provide all necessary information about their orders. E.g., they provide the shipping address, but not the billing address. Hence, without a standardized form for customer orders, customer orders (and consequently sales orders) may be incomplete. (B) Prenumbering for sales orders
Sales orders are not prenumbered. As the sales clerk...
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