Analysing the Accounting Information
Analysing the Accounting Information System of HARDA Fashion
I just need executive summary and conclusion.
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HI5019 T2 2020 Assessment 1: Individual Assignment
1
HOLMES
INSTITUTE
FACULTY OF
HIGHER
EDUCATION
ASSESSMENT DETAILS AND SUBMISSION GUIDELINES
Trimester T2 2020
Unit Code HI5019
Unit Title Strategic Information Systems for Business and Enterprise
Assessment Type Assessment 1: Individual Assignment
Assessment Title Analysing an Accounting Information System
Purpose of the
assessment (with
ULO Mapping)
Students are required to:
Demonstrate theoretical and practical knowledge of Accounting
Information System.
Articulate the various transaction cycles, financial reporting,
and management reporting systems to technical and non-
technical stakeholders.
Evaluate various internal control process of an accounting
information system.
Weight 20% of the total assessments.
Total Marks 20 Marks.
Word limit 2000 words 10%.
Due Date The written report is due in Week 7, dated 4th September 2020, on
Friday at 11.59.
Submission
Guidelines
All work must be submitted on Blackboard by the due date along with
a completed Assignment Cover Page.
The assignment must be in MS Word format, double spacing, 12-pt
Arial font and 2 cm margins on all four sides of your page with
appropriate section headings and page numbers.
Reference sources must be cited in the text of the report and listed
appropriately at the end in a reference list using Harvard referencing
style.
HI5019 T2 2020 Assessment 1: Individual Assignment
2
Include a minimum of ten (10) references, at least five (5) from peer-
reviewed journal relevant to the unit.
ASSIGNMENT DETAILS
Analysing the Accounting Information System of HARDA Fashion.
HARDA Fashion sells ready-to-wear fashion clothes to teenagers. The company has a 20-store
chain concentrated in the north-eastern part of the United States of America. Each store has
the experienced full-time staff consist of a manager and an assistant manager. The full-time
staff is paid a fixed salary. The full-time staff is assisted with a cashier and a sales assistant
who have comparatively less experience. The cashier and sales assistant are paid hourly
wages plus the commission based on the volume of sales. HARDA Fashion uses
unsophisticated cash registered with four-parts sales invoice to record each financial
transaction. These sales invoices for the sales transaction irrespective of the payment type.
The record-keeping starts with the sales assistant on the sales floor. The sales assistant fills the
sales invoices manually by providing the following information:
1. Records his or her employee number.
2. Enters the transaction details including clothes item number, description, quantity,
and the unit price.
3. Totals the sales invoice.
4. Calculates the discounts manually when appropriate.
5. Calculates the sales tax.
6. Finalise the sales invoice after calculating the grand total.
The sales assistant then forwards the sale invoice to the cashier and keeps one copy in the
sales book.
The cashier reviews this sales invoice and enters in the cash register. The cash register
mechanically validates the invoice, automatically assigning a consecutive number to the
transaction. The cashier is also responsible for getting credit approval on charge sales and
approving sales paid by cheque. The cashier gives (1) one copy of the invoice to the customer,
(2) retains the second copy as a store copy, and (3) the third for a bankcard, if a deposit is
needed. Returns are handled in exactly the reverse manner, with the cashier issuing a return
slip.
At the end of each day, the cashier sequentially orders the sales invoices and takes cash
register totals for cash, bankcard, cheque sales, and cash and credit card return. These totals
are reconciled by the assistant manager to the cash register tapes, the total of the consecutively
numbered sales invoices, and the return slips. The assistant manager prepares a daily
reconciliation report for the store managers review.
HI5019 T2 2020 Assessment 1: Individual Assignment
3
The manager reviews cash, cheque, and credit card sales and then prepares the daily bank
deposit (credit card sales invoices are included in the deposit). The manager makes the deposit
at the bank and files the validated deposit slip.
The cash register tapes, sales invoices, and return slips are forwarded daily to the central data
processing department at corporate headquarters for processing. The data processing
department returns a weekly sales and commission activity report to the manager for review.
Required
Prepare a report to Chief Executive Officer of HARDA Fashion to evaluate its processes, risks,
and internal controls for its revenue cycle. In your report, you need to include the following
items:
1. Identify six strengths in HARDAs system for controlling sales transactions.
2. For each strength identified, explain what problem(s) HARDA Fashion has avoided
by incorporating the strengths in the system for controlling sales transactions.
3. Identify two situational pressures in a company like HARDA Fashion that would
increase the likelihood of fraud.
4. Explain why some companies would choose to install a distributed computer system
rather than a centralised one.
Assignment Structure
The report should include the following components:
Assignment Cover Page clearly stating your name and student number.
Executive summary.
A table of contents.
The introduction.
Body of the report with sections to answer the above issues and with appropriate
section headings.
Conclusion and recommendations.
List of references.
The report should be grounded on relevant literature, and all references must be cited
appropriately and included in the reference list.
HI5019 T2 2020 Assessment 1: Individual Assignment
4
Marking criteria
Marking criteria
Weighting in
Total Grades
Strengths in HARDAs system for controlling sales transactions 6%
Problems that HARDA Fashion has avoided by incorporating the
strength in the system for controlling sales transactions
6%
Situational pressures that would increase the likelihood of fraud 2%
Reasons for companies to install a distributed computer system rather
than a centralised one
2%
Research quality 4%
TOTAL Weight 20%
HI5019 T2 2020 Assessment 1: Individual Assignment 5
Marking Rubric
Excellent Very Good Good Satisfactory Unsatisfactory
(80-100%) (70-79%) (60-69%) (50-59%) (0-49%)
Strengths in HARDAs
system for controlling
sales transactions (6
Marks)
Present an excellent
discussion of strengths in
HARDAs system with
supporting evidence
from the case.
Present a very good
discussion of strengths in
HARDAs system with
supporting evidence
from the case.
Present a good discussion
of strengths in HARDAs
system without
supporting evidence
from the case.
Present a reasonable
discussion of strengths in
HARDAs system with
minor errors and/or
omissions.
Present a weak or
inadequate discussion of
strengths in HARDAs
system with significant
errors and/or omissions.
Problems that HARDA
Fashion Limited has
avoided by incorporating
the strength in the system
for controlling sales
transactions (6 Marks)
Correctly identify all
problems that HARDA
Fashion has avoided with
supporting evidence
from the case.
Correctly identify most
problems that HARDA
Fashion has avoided with
supporting evidence
from the case.
Correctly identify most
problems that HARDA
Fashion has avoided
without supporting
evidence from the case.
Correctly identify most
problems that HARDA
Fashion has avoided with
minor errors and/or
omissions.
Fail to identify the
problems that HARDA
Fashion has avoided.
Situational pressures that
would increase the
likelihood of fraud (2
Marks)
Present an excellent
discussion of situational
pressures that would
increase the likelihood of
fraud.
Present a very good
discussion of situational
pressures that would
increase the likelihood of
fraud.
Present a good discussion
of situational pressures
that would increase the
likelihood of fraud with
minor errors and/or
omissions.
Present a reasonable
discussion of situational
pressures that would
increase the likelihood of
fraud with errors and/or
omissions.
Present a weak or
inadequate discussion of
situational pressures that
would increase the
likelihood of fraud with
errors and/or omissions.
Reasons for companies to
install a distributed
computer system rather
than a centralised one (2
Marks)
Present an excellent
discussion of reasons for
installing a distributed
computer system instead
of a centralised one.
Present a very good
discussion of reasons for
installing a distributed
computer system instead
of a centralised one.
Present a good discussion
of reasons for installing a
distributed computer
system instead of a
centralised one with
minor errors and/or
omissions.
Present a reasonable
discussion of reasons for
installing a distributed
computer system instead
of a centralised one with
errors and/or omissions.
Present a weak or
inadequate discussion of
reasons for installing a
distributed computer
system instead of a
centralised one.
Research quality (4
Marks)
An extensive amount of
high-quality evidence
from peer-reviewed
journal articles and other
sources was included and
used effectively to
support discussion.
A broad range of quality
peer-reviewed journal
references and other
sources was included and
used effectively to
support discussion.
An adequate range of
peer-reviewed journal
references was included
and used to support
discussion.
An adequate range of
peer-reviewed journal
references was included
and used to a basic extent
to support discussion.
Little or no peer-
reviewed journal
references were included,
and these were rarely
used to support
discussion effectively.
HI5019 T2 2020 Assessment 1: Individual Assignment
6
Academic Integrity
Holmes Institute is committed to ensuring and upholding Academic Integrity, as Academic
Integrity is integral to maintaining academic quality and the reputation of Holmes graduates.
Accordingly, all assessment tasks need to comply with academic integrity guidelines. Table
1 identifies the six categories of Academic Integrity breaches. If you have any questions about
Academic Integrity issues related to your assessment tasks, please consult your lecturer or
tutor for relevant referencing guidelines and support resources. Many of these resources can
also be found through the Study Sills link on Blackboard.
Academic Integrity breaches are a serious offence punishable by penalties that may range
from deduction of marks, failure of the assessment task or unit involved, suspension of
course enrolment, or cancellation of course enrolment.
Table 1: Six categories of Academic Integrity breaches
Plagiarism Reproducing the work of someone else without attribution.
When a student submits their own work on multiple
occasions this is known as self-plagiarism.
Collusion Working with one or more other individuals to complete an
assignment, in a way that is not authorised.
Copying Reproducing and submitting the work of another student,
with or without their knowledge. If a student fails to take
reasonable precautions to prevent their own original work
from being copied, this may also be considered an offence.
Impersonation Falsely presenting oneself, or engaging someone else to
present as oneself, in an in-person examination.
Contract cheating Contracting a third party to complete an assessment task,
generally in exchange for money or other manner of
payment.
Data fabrication and
falsification
Manipulating or inventing data with the intent of supporting
false conclusions, including manipulating images.
Source: INQAAHE, 2020 REPORT FOR THE EVALUATION OF PROCESSES,RISKS AND INTERNAL CONTROL FOR REVENUR CYCLE
TO THE CHIEF EXECUTIVE OFFICER
HARDA FASHION
Strengths in HARDAS system for controlling sales transactions
1. Each 20-store chain of HARDA fashion has experienced full time staff members.
2. Full time staffs are assisted with a cashier and sales assistant.
3. Cashier and sales assistant are paid incentives on hourly basis and given commission based on volume of sales.
4. The sales assistant prepared and forwards sales invoice to the cashier who reviews the same and enters in the cash register. Returns are handled exactly in the opposite manner.
5. The cash register mechanically validates the sales invoice and automatically assigns a consecutive number and the cashier sequentially orders the sales invoices.
6. Assistant manager prepares a daily reconciliation report for the managers review and there after the manager forwards this to processing department. Returns a weekly sales and commission activity report to the manger for the review.
Problems avoided by HARDA fashion by in controlling the strengths in the system for controlling sales transactions:
1. Each and every store of the HARDA fashion has the experienced full-time staffs, which makes the activities of the store to be controlled and well maintained in professional manner. Because the staffs are experienced and also, they are in full time employment, the possibility of making any errors are eliminated and their attention will be available at all times.
2. Cashier and the sales assistant who are under the full-time staffs have an opportunity to learn and seek information and work practices ,techniques from the staffs. They can also get their work evaluated by the staffs.
3. As the cashier and salesperson are paid on hourly basis and given commission based on volume of sales, these people will be more active and hard working so as to increase the sales volume. This helps the store to achieve high turnover of sales and also, they will be willing to work overtime as they get paid.
4. Work done by the sales assistant are reviewed by the cashier and this eliminates the possibility of not detecting any errors because an error done by one will be identified by the others. Also, this is a case of delegation of work which is very helpful in eliminating the burden of work on one person.
5. The cash register is validated mechanically which makes it more reliable and accurate. The automatic assigning of consecutive number for the invoices are helpful to identify any omission of invoices.
6. Preparation of daily reconciliation report helps to identify if there is any mismatch in the sales, cash and bank balances. The weekly sales and commission activity reports helps the manager to overlook the functioning of the store.
Situational pressures in a company like HARDA fashion that would increase the likelihood of fraud:
1. Unrealistic goals and performance biased compensation tempt the workers to artificially boost revenue like dependency up on the is more as compared to other people which might be risky if the cashier wants to commit fraudulent activities.
2. There might be the conflict between the staffs because of opinion taken by one may not be accepted by the others. This can create a weak relationship between the staffs. Competition with rivals are good but competition within the business or between staff can often be a threat for company.
Distributed computer system v/s centralized system.
Many companies are trying to find the application of distributed computer system because:
Every node makes its own decision and are independent of each other.
The final behaviour of the system is the aggregate of the decisions of the individual nodes.
There is more than one central unit which can listen for connections from other nodes.
One central node failure does not cause the whole system to failure ,while in centralised system, if one node fails the whole system fails.
In centralized system , all the calculations are done on one particular computer system, however the calculation is distributed to multiple computers in a decentralized computer system which join forces to solve the task.