Expert answer:Analyze the risks in the systems that your team an
Answer & Explanation:Do not bid if you are asking for more than $15. 0% PLAGIARISM AND NO GRAMMAR ERROR.Management at Kudler Fine Foods has reviewed the flowcharts (attached) and is requesting information on controls that will be required.Kudler AIS brief.pdf Prepare a brief of 1100 words in which you address the following:Analyze the risks in the systems that your team analyzed.Identify all risks and internal control points by incorporating the controls and risks into the flowcharts.Design internal controls to mitigate risks to the systems.Evaluate the application of internal controls to the systems.Discuss other controls, outside the system, that Kudler Fine Foods may need.
kudler_ais_brief.pdf
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Automated Process of Accounting Information Systems
MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
Kudler Fine Foods automation of AIS
CC:
Accounting & Information Technology Departments
Similar to any business, Kudler Fine Foods (KFF) uses payroll, accounts payable, accounts
receivable, and inventory processes. Kudler Fine Foods can improve all four of these processes
by the use of accounting information systems (AISs). The accounting firm has assigned us to the
team that will recommend methods to improve automation of these processes.
Both teams agree that Kudler Fine Foods should use industry-specific software to automate these
processes. It is well known that prewritten, off-the-shelf software is relatively reliable and
inexpensive1. Many companies pay for custom-developed accounting information systems that
end up costing a lot of money for less reliability1. The team also believes that Kudler would
avoid paying for many expenses long term by using an industry-specific accounting system. The
processes that Kudler is looking to implement are common and well documented in many
industry standard packages.
Implementing a new system in the workplace requires training to get the employees familiar with
the new software. Since a standard AIS would include the user guides, manuals, and similar
operating instructions to help people learn how the AIS operates, Kudler Fine Foods would
spend less of their retained earnings on training their employees. A custom-built AIS would
require a lot more time, energy, and money because the system would have to start from the
beginning stage of gathering requirements and go through each subsequent stage until
implementation. With an off-the-shelf package, the client can focus on their needs and then
select the best package to fit the requirements. Also, documentation will have to be created
during the project. The documentation will describe the application, but not give step by step
instructions. To have a user manual, Kudler Foods would need to invest in a documentation
writer at the end of the project to create one.
Another advantage to using an AIS that is already well known in the marketplace is the potential
to save in maintenance fees and downtime. Other companies have found many of the “bugs” in a
1
Bagranoff, N. A., Simkin, M. G., & Strand Norman, C. (2008). Core concepts of accounting information systems (10th ed.). New York, NY:
Wiley.
Automated Process of Accounting Information Systems
well-documented and established AIS package. The developers have had time to fix the issues to
make the application more stable. New problems can be solved a lot easier and faster because the
creators of the AIS are familiar with standard troubleshooting and can focus on the major issues.
The maintenance costs of a brand new AIS can become costly because there is no history
indicating the sources of particular problems.
One enhancement the team is recommending is to implement a Human Resources module to
track employee information such as personal data, resume, yearly reviews, and complaints. This
module is critical because it is part of the input into the to the payroll module. It can help to track
that each employee receives the proper pay and benefits.
Maintenance Schedules will depend on the recommendation from the software vendor, the
hardware vendor, and the needs of the clients. Usually, there are scheduled updates for software to fix bugs or add small enhancements. These should be applied based on the needs of the
customer and the impact of the change. Hardware vendors put out bug fixes to make their
hardware run more efficiently. These should be evaluated based on the change and the potential
impact on the processes.
According to Kudler Fine Food 2003 Strategic Plan, payroll is currently outsourced. This
particular process should be continued because “many businesses, particularly those with small
staffs, send their payroll to outside firms like Automated Data Processing, Inc. (ADP) and
Paychex to be processed” (Murray and Murray, 2012, p. 184). Outsourcing all components of
payroll is a sound business decision to ensure tax withholding, quarterly deposits and 941 returns
are timely submitted. Next priority should be the security of the finance and accounting systems.
KFF must acquire software that will handle audits because there are currently no formal policy.
If Kudler Fine Foods incorporates the recommended AIS into their current accounting operations,
their payroll, accounts payable, accounts receivable, and inventory processes would be more
efficient. Kudler Fine Foods are expanding its business operations and investing in a new
standard AIS would be a sound business decision. An old accounting system may not have the
capability to handle a larger amount of data for new clients. A new AIS would also convince
potential customers that Kudler Fine Foods is innovative and a leader in the food store industry.
Below is a flowchart to show the flow of data in the recommended accounting information
system for Kudler Fine Foods:
Automated Process of Accounting Information Systems
Automated Process of Accounting Information Systems
References
Kudler Fine Food 2003 Strategic Plan. (2011). Apollo Group, Inc.: Virtual Organizations Portal
Retrieved from
https://ecampus.phoenix.edu/secure/aapd/cist/vopdevelopment/Business/Kudler2/internet
/index.asp
Murray, G.R. & Murray, K. (2012). Accounting at your fingertips (2nd ed.). Penguin Group: New
York, NY.
…
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