Many companies still keep cost accounting separate from the production information systems. Do you think this is a good or a bad idea and why?
1 What is the role of accountants in ensuring that there are sufficient controls to safeguard the production cycle?
2 How can data warehousing enhance the reporting process over a file-based system or a manual system?
3 The production order document is part of controls within manufacturing operations. Why is the document important?
4 It is true that it authorizes the manufacturing of a product, and provides specifications for production. However, materials are needed to meet production specifications.
5 Class: Why is Materials Requisition important? What is the role of Materials Requisition in the production cycle?
6 When an organization installs a new accounting system, its managers hope that it will eliminate all the old problems and not create new ones. However, as the new system operates on a day to day basis, some of the company's original systems problems may reoccur or new problems may develop. What is the purpose of the follow up phase of a systems study? Can system analysis help mitigate threats in the production cycle?
7 Why should accountants be concerned about labor productivity? How is labor productivity related to product defect yield?
8 An AIS provides so much information to use in decision-making, both financial and non-financial, what tools are available for measuring how a company is performing?
9 A manager of a computer assembly plant has created many fictitious accounts receivables to hide his personal orders of computers from his company. When an account becomes a bad debt, he creates a new one. Fortunately, the manager ships the computers to his home address which is the same in the employee master file. Discuss how an integrated HR/Payroll system would help auditors to detect this fraud.
10 When establishing controls within a payroll system, the implementation team should also design an effective audit trail, develop general and application controls for the computerized system, and create good documentation for the system. Because these controls will affect both the form and content of a company's computer files, the team should create and implement these controls before converting accounting data files to alternate formats. Who should have access to payroll data?
11 How can the payroll module of an AIS be breached? What controls should be set up to help prevent this?
12 What is a payroll master file? Describe the types of errors that may occur in the master file and how they get there. How would you design payroll procedures to help prevent them?
13 Can you share your knowledge about XBRL? What are the benefits of XBRL?
14 Discuss how controls in the payroll work flow may make employees feel like they are being "watched." Would you communicate up front the reasons for the changes, why or why not?
15 What kind of threat do unauthorized changes to the payroll master file pose to payroll processing? Can you relate separation of duties to the threat?
16 Why should accountants be concerned about threats to payroll fraud? How can the AIS help in resolving the problem of ghost employees?