The Course Project is designed to provide you with a scenario-based approach to developing an updated Accounting Information System. In this project, you are asked to develop a team, perform systems analysis, calculate the cost vs. benefit, evaluate balanced scorecard factors, prepare flowcharts, and make a recommendation for a feasible accounting information system for your company. This course project is prepared to demonstrate your understanding of an accounting information system analysis, implementation and how the system relates to other departments within a company.
Your company is a publicly held, mid-sized manufacturer, with $20 million dollars in annual revenue. You produce high-end running shoes exclusively in the US. You are planning to sell your products internationally within the next 2 years. You operate in a lean environment and your supplier monitors your raw materials needs and shipments are made JIT.
Throughout the term, you are asked to submit portions of your project. In Module 05, you deliver your final proposal to company's management.
Requirements
Assume that you are the Chief Accounting Officer (CAO) for the company. The company is publicly held; therefore, it must follow all reporting requirements of the Securities and Exchange Commission (SEC).
The company is expanding rapidly and has outgrown its information system. You have been given the task of evaluating and recommending a viable accounting information system solution for the accounting and financial data. Your final proposal will be delivered to the Chief Executive Officer (CEO) and Chief Information Officer (CIO). You must be able to support your proposal with appropriate research.
To complete this project:
- Organize a team to assist you in finding the appropriate system. Identify the departments that will be affected by the change and their role on your team.
- Identify the strengths and weaknesses of the current system including internal control and complete a balanced scorecard that must be addressed in an AIS transition.
- Each department must prepare a flowchart of how their information works in the system. Your task is to prepare a flowchart for at least two of the following business processes:
o Sales Process
o Purchasing Process
o Production Process
o Financing Process
- Conduct research to find two standard packages that you feel may fit your company. Please remember that the business is a large, publicly held manufacturing company. Include a minimum of the following:
o Cost
o Availability
o Required Hardware
o Training and Support Package
o Transition Time
- Assume that you adopt custom software. Briefly explain the advantages and disadvantages to selecting this approach. Using present value tables, evaluate the cost vs. benefit of a system under the following scenario: The probable cost of the best package is estimated at $20 million to implement. While there are no benefits in the first year, you estimate the system will save the company a net of $4 million the second year after costs and $6 million for the next three years. Interest rate is 2 %. Your cost vs. benefit analysis should indicate the total and yearly benefits and discounted costs.
- Summarize your findings and prepare a PowerPoint presentation to be delivered to the CEO and CIO. Be creative in your slides by incorporating charts, graphs, and/or artwork. Your PowerPoint should begin with an introduction as to why the project was considered and conclude with the value of the project.
PART I: TEAM SELECTION
You have been given the task of evaluating and recommending a viable accounting information system for the accounting and financial data of your company. As you begin to research this system, you realize that many departments are involved in the information system. You decide that selecting a team to assist you with your research would be the most beneficial approach for the company.
This module, you begin your course project by selecting a team to assist you in finding an appropriate accounting information system.
- Prepare a summary of the departments that will be affected by the AIS change and identify their role on your team.
o Your team must consist of at least four departments. Discuss the team members and indicate which departments/roles they represent. Should they be a manager, supervisor, production line worker, etc.? Why?
o What are some of the other key characteristics and skills that these team members should have and why these are important? For example, constantly focuses on the task and always listens to others, provides valuable input and ideas, etc.
o Identify the accounting information provided by and used by each department.
- Provide an APA formatted title page.
- Include an APA formatted reference page and in-text citations if needed for any outside sources used.
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PART II: System Analysis, Internal Control, and Balanced Scorecard
As noted in the introduction overview in Module 01, this course project demonstrates your understanding of an accounting information system analysis, implementation and how the system relates to other departments within a company. Your assignment for Module 02 consists of two parts:
1. Identify the weaknesses of the current system of internal control and how to address them.
2. For each category in a balanced scorecard, note one key success factor to help achieve shareholder value.
Internal Control
In Module 01 you determined the departments and employees that you would like on your team to assist you in researching your accounting information system. This module you are preparing a summary of internal control weaknesses that may occur in each of those four departments.
Requirements:
- Prepare a summary that identifies the department, the weakness or threat, and control that you will implement in the new system.
- Discuss at least three internal control weaknesses or threats in each of the four departments that you are working with (12 in total).
o Explain why a weakness exists and the steps that you will implement in your new system to address these issues.
- Provide an APA formatted title page.
- Include an APA formatted reference page if needed for any outside sources used.
An example of a weakness or threat in the general ledger and reporting system might be unauthorized disclosure of financial statements. Controls to respond to this weakness or threat include access controls and encryption.
Balanced Scorecard
While the balanced scorecard is not a new concept, it does offer a framework allowing managers to measure an enterprise's performance from four categories - financial, customer, business processes, and learning and growth. The balanced scorecard considers both financial and nonfinancial measures.
After researching the balance scorecard, for each of the four categories, identify at least one critical success factor for a firm to achieve shareholder value.
When submitting your work, make certain to provide an APA formatted title page and include an APA formatted reference page if needed for any outside sources used.
Save your assignment as a Microsoft Word document.
PART III: Flowcharting Business Processes
As part of the planning process for your new accounting information system, your supervisor has asked that you prepare flowcharts. This graphic presents the flow of information through the accounting cycles.
- Using the company information provided in the Module 01 Course Project Overview, prepare flowcharts for two business processes.
o Each of your flowcharts should be detailed, and have the right symbols for each process.
o Use Word, Excel or PowerPoint to demonstrate flowcharting features and basic visual elements.
o Also, think your way through the processes from beginning to end. For example, how is sales revenue defined, such as when is it considered earned? Construct your thoughts and concepts by using the programs listed above.
The following are the business processes that you may elect to address:
- Sales
- Purchasing
- Resources Management
- Production
- Financing
Please note that you will have two distinct flowcharts for this assignment. Be sure your flowcharts are professionally presented and clearly labeled.
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PART IV: Software Research and Costs vs. Benefits
As part of your course project, you are asked to research software for your accounting information system and complete a cost vs. benefit analysis using present value tables.
Part 1 - Software Research
Conduct research to find two standard packages that you feel may fit your company. For example, SAP is a one of the solutions that a company can utilize, to do everything from human resources, finance, and inventory.
You should use 2 credible sources, which may include journal articles from Academic Journals. You can access these through the Rasmussen Online Library databases.
Use APA formatting to write your paper and to document your sources. It will be important to cite your sources both in-text and on your reference page.
You are required to discuss the following:
In a single document, provide a summary of the two software packages that you researched. Include the following information in your summary:
- Cost
- Availability
- Required Hardware
- Training and Support Package
- Transition Time
- Briefly explain the advantages and disadvantages of each of the software.
- In the summary, indicate the product that you feel is the best fit for your company and why.
- Include an APA formatted reference page.
- Include an APA formatted title page.
Part 2 - Cost vs. Benefit Analysis Using Present Value Tables
Assume that you adopt a custom software package. Using present value tables, evaluate the cost vs. benefit of a system under the following scenario: The probable cost of the best package is estimated at $20 million to implement. While there are no benefits in the first year, you estimate the system will save the company a net of $4 million the second year after costs and $6 million for the next three years. Interest rate is 2%. Your cost vs. benefit analysis should indicate the total and yearly benefits and discounted costs. Will the project make money at the 2% interest rate?
This exercise involves a capital budgeting decision using the net present value method. This method considers the estimated net cash flows for a project's expected life.
You can use the following format for your analysis. Alternatively, you can list the years using a vertical format.
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Year 1
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Year 2
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Year 3
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Year 4
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Year 5
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Benefits
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Discounted
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Total Discounted
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Value
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Summarize your findings in an executive summary table with information for easy comparability. THIS TABLE IS UP TO FIVE AND NOT JUST TWO
Save your assignment as a Microsoft Word document.
PART V: Final Proposal
This module the final part of your course project is due. Using the information that you have gathered throughout the previous 4 modules:
- Prepare an executive summary that will be delivered to the CEO and CIO.
o Your report should include your suggestions for implementing a new accounting information system. In addition, briefly discuss the types of ethical issues involved in computerized accounting information systems and how organizations can encourage their employees to act ethically.
o Your suggestions should be supported by the research that you have completed. Remember you are solving complicated issues by determining best methods to solve the issues.
o Include a minimum of 5 reference sources with 2 being credible. For your credible sources, you can use journal articles from Academic Journals, which can be accessed from the Rasmussen Online Library databases.
o Use APA formatting to write your paper and to document your sources. It will be important to cite your sources both in-text and on your reference page.
o Include an APA formatted title page.
- In addition to the executive summary, create a PowerPoint to be presented to senior management. Be creative in your slides by incorporating charts, graphs, and/or artwork. It should begin with an introduction as to why the project was considered and conclude with the value of the project.