Acc 559 AIS Choate and Choate

Acc 559 AIS Choate and Choate - Choate & Choate CA RUNNING...

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Choate & Choate CA 1 RUNNING HEAD: Identifying controls for a system Overall good write-up. In grading, 3 strengths and weaknesses were expected. Suggested controls include identity of the  salespersons or their representatives, justification of the expenses, access  controls over the computer terminal, controls over computer processing, and  controls over checks.  Acc-559 Advanced Accounting Information Systems Case Analysis Identifying Controls for a system Choate & Choate
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Choate & Choate CA 2 Identifying Controls for a system Choate and Choate (C & C), an advertising agency, employs 625 salespersons to secure accounts for the agency. The sales team travel throughout company territory requiring reimbursement of expenses associated with securing client business. A change in the economy mandated a modification in the way C & C handles sales expenses. Sales personnel felt waiting up to two months for reimbursement on expenses was not a sound financial decision and requested an implementation of a faster reimbursement system. In order to secure financial resources C & C need to examine the strengths and weaknesses of the current AIS system. Examining the current system enables C & C to design a new system necessary to safeguard the company’s financial standing while mitigating employee frustration over a lengthy reimbursement-waiting period. Strengths and weaknesses of the current system When identifying controls for a system, internal and application controls need considered. According to Koutoupis (2007), “Controls should promote efficiency, reduce the risk of asset loss, and ensure the reliability of financial statements and compliance with relevant laws and regulations” (¶ 1). Internal controls include policies, procedures, and practices. Designed to achieve four objectives, internal controls safeguard assets, provide checks for accurate and reliable accounting data, promote efficiency, and provide managerial policies adherence. (Moscove et al., 2003). Application controls differ in internal controls by working within the IT environment to prevent, detect, and correct errors and irregularities. In order to determine strengths and weaknesses in C & C’s current system controls in both systems need evaluated.
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Choate & Choate CA 3 The strengths in C & C’s current system include several methods to ensure compliance with reimbursement of expenses. The sales team submits paper receipts with expense reports
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This note was uploaded on 09/28/2008 for the course MBA mba 559 ac taught by Professor Unknown during the Spring '08 term at University of Phoenix.

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Acc 559 AIS Choate and Choate - Choate & Choate CA RUNNING...

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