Accounting Information System
Improving Transactional Processing in Accounting Information System (AIS)
Propose two (2) innovative technology changes that would be appropriate for a firm's:
Revenue (sales to cash collection) cycle
Revenue cycle represents the description of the financial progression of a business entity in relation to the accounts receivable from the point of acquisition of products to the stage when the company or business organization receives full payment for the products (Romney, 2012). One of the innovative technological changes that can transform the revenue cycle is leverage technology. This technology would allow the company or business entity to adopt appropriate way of providing crucial information to essential parties in relation to consumers or market audience. Application or adoption of this technology would allow the company to maximize consumer relationships and production or profit levels. The other innovative technological change is automation of the management systems of the firm or organization. It is crucial to review the transfer of information within the organization and across the market or industry in order to satisfy the needs of consumers. Automation of the management would enhance the effectiveness and efficiency of the activities by the company hence satisfaction of the consumers.
Expenditure (purchase to cash disbursements) cycle
Expenditure cycle involves all the activities that take place between the points where the business organization or entity places an order for products and disburses funds to cater for the commodities (Romney, 2012). Expenditure cycle begins from the point when the organization or business entity makes the decision to procure a commodity or service up to the time of settling the payment. Innovative technological changes in relation to communication, transportation, manufacturing, and production have enormous capacity to influence the expenditure cycle of a firm or organization. The other technological innovation might include adoption of new product or production and procurement of existing products with the help of new processes. Automation of the activities within the expenditure cycle also has the opportunity to offer significant change to the production levels of the firm.
Human resources / payroll cycle
Human Resource or payroll cycle represents the recurring set of business operations and data processing activities in relation to managing the workforce effectively and efficiently (Romney, 2012). Some of the activities under this cycle include training, recruitment and selection of new employees, evaluation of performance, job design, and discharge of employees. One of the innovative technological changes that can transform an organization is the adoption of effective and efficient data entry programs. This would record information in relation to the workforce or staff members. The technological change is adoption of automation system in conducting activities in relation to the development of the workforce. This would include application of automation in hiring employees, keeping valid information on the staff, and effective transmission of resources and data across different departments within the organization or business entity.
Financial reporting / general ledger system
These programs relay the financial statements or strengths of the company (business entity). These programs are crucial to the attraction of new investors to further development of the company to a different level (Romney, 2012). The company has the opportunity to adopt any financial reporting system in order to be precise in its illustrations. The company might decide to illustrate its financial reports through revaluation technological innovative. The other technological innovative is the use of depreciation system to portray the financial reports. The company could also adopt the use of database system to illustrate crucial financial information in relation to the performance of the company. Potential and current investors have the opportunity to access the financial information within the database.
Suggest two (2) controls for each of the AIS information system applications (revenue cycle, expenditure cycle, production cycle, human resource / payroll cycle, and the general ledger / financial reporting system) that will mitigate potential threats.
Revenue Cycle
Well-designed accounting information system should ensure that all transactions enjoy proper authorization. The other control should ensure that the transactions of revenue cycle activities are valid. Valid and authorized transactions or operations must undergo reliable recording system to provide sufficient information to allow the companies make future references. The controls should also ensure that there is an enhancement in the effectiveness and efficiency of the performance of the activities (Hall, 2011).
Expenditure Cycle
One of the controls that might affect the organization or relates to expenditure cycle is the budgetary control. The organization...
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