Analysing an Accounting Information System

HI5019 T1 2022: Individual Assignment (Assessment 1) Page 1 of 7

ASSESSMENT DETAILS AND SUBMISSION GUIDELINES
Trimester T1 2022
Unit Code HI5019
Unit Title Strategic Information Systems for Business and Enterprise
Assessment Type Assessment 1: Individual Assignment
Assessment Title Analysing an Accounting Information System
Purpose of the
assessment (with
ULO Mapping)
Students are required to:
Critically evaluate the purpose and role of accounting information
systems in today’s business environment [ULO 1].
Articulate the various transaction cycles, financial reporting,
management reporting systems, and e-commerce to technical and non
technical stakeholders [ULO 2].
Appraise the risks inherent in computer-based systems/ERP,
including the role of ethics and the various internal control processes
that need to be in place [ULO 4].
Weight 20% of the total assessments.
Total Marks 20 Marks.
Word limit Two thousand words (± 10%)
Due Date The written report is due in Week 5 on Friday, dated 22nd April 2022, at 11:59
pm (AEST)
.
Late submission incurs a penalty of five per cent of the assessment per calendar
day unless Student Services have granted an extension and/or special
consideration before the assessment submission deadline.
Submission
Guidelines
All work must be submitted on Blackboard by the due date, along with a
completed
Assignment Cover Page.
The assignment must be in MS Word format, double spacing, 12-pt Arial font
and 2 cm margins on all four sides of the page with appropriate section
headings and page numbers.
Reference sources must be cited in the text of the report and listed
appropriately at the end in a reference list using Adapted Harvard
Referencing style. Please see the section Assignment Design – Adapted
Harvard Referencing Section below.
Include a minimum of ten references, at least five from peer-reviewed
journals relevant to the unit.

HI5019 T1 2022: Individual Assignment (Assessment 1) Page 2 of 7
ASSIGNMENT DETAILS
The first four interactive tutorials of the Strategic Information System for Business and Enterprise
HI5019 T1 2022 provide sufficient background knowledge to understand accounting information
systems and analyse the revenue cycle of a company. Based on a strict assumption, this knowledge
enables you to start an accounting consultancy. You are passionate to provide consultancy services in
this area. To pursue your passions, you started your consultancy services. Luckily, you got your first
client, Mrs Maria, head of the RCIATO Limited
.1 Mrs Maria approached you to evaluate their revenue
cycle. At the end of the initial meeting, you requested Mrs Maria to provide you with the details of the
sales order processing procedures (SOPP) and (2) cash receipts procedures (CRP). Here it might be
essential to note that the revenue cycle can be broadly categorised into SOPP and CRP. For this
assessment purpose, we will use the terms type one procedures and type two procedures to reveal the
sales order processing procedures and cash receipts procedures, respectively.
2 The description of the
type one procedures and type two procedures are given below.
Type One Procedures of RCIATO Limited
The sales department encourages its customers to forward the orders in any form, including mail, email or fax. The sales clerk first converts these sales orders into standardised sales orders. For this
purpose, the sales representative requests the missing information, if any.
3 When the order is received,
the sales clerk checks the customer’s creditworthiness from his computer terminal. The sales clerk
thinks that checking the accounting record is not technical, and he can perform these duties efficiently.
Two years ago, the sales clerk requested the accounting department provide him with a list of
customers whose account receivables are written off. The sales clerk is still using this information to
check the customers’ creditworthiness. The sales clerk did not differentiate the new customers from the
existing customers, and he is using the same procedure to check the creditworthiness of the new
customers. The customer’s order is rejected if the customer’s credit is not verified.
The sales order processing is started after the credit verification. In particular, the sales clerk records
the approved standardised sales order in the sales order system through his computer terminal. A
digital copy of the order is distributed to the warehouse and the shipping department terminals for
further processing. The computer system automatically records the sale in the sales journal. The clerk
files the hard copy of the customer order in the sales department without reviewing the entry. Then,
the receipt of the digital sales order prompts on the computer terminal of the warehouse manager. This
digital sales order has the associated stock release and the shipping notice. As discussed in our
interactive tutorials, these documents play an essential role in the transaction processing system. The
warehouse manager has access to these documents. The warehouse manager prints out the sales order,
the stock release, and the shipping notice and use these hard copies for further processing. Using the
stock release copy, a warehouse clerk picks the selected items from the shelves and sends them to the
shipping department along with the stock release and the shipping notice. The warehouse manager
then updates the inventory subsidiary ledger and the general ledger control account from his computer
terminal.
1 RCIATO Limited is a Queensland based wholesaler that deals in rafting and camping equipment. In particular, RCIATO
Limited serves outdoor sports camping retailers throughout Queensland. Mrs Maria has recently joined the accounting
department of RCIATO Limited as a head of the department. Mrs Maria gathered a wide range of data from her department
using different sources to improve the operations of her department. After analysing this data, Mrs Maris is concerned about
the revenue cycle of RCIATO Limited.
2 For further information on these terms, attend the weekly interactive tutorials.
3 In the light of our discussion during the interactive tutorials, please mention this missing information.
HI5019 T1 2022: Individual Assignment (Assessment 1) Page 3 of 7
The shipping clerk receives the physical stock, the stock release, and the shipping notice from the
warehouse manager. The shipping clerk matches them to the corresponding digital sales order
displayed on his terminal. If everything matches, he prints out three hard copies of the bill of lading
and a packing slip. The shipping clerk sends two copies of the bill of lading and the packing slip, along
with the goods, to the carrier. The stock release copy and the shipping notice are sent to the accounts
receivable department. These documents play an essential role in the efficient management of the
account receivable. The third bill of lading copy is filed in the shipping department for record-keeping
and audit purposes. The account receivable clerk receives the stock release and shipping notice from
the shipping clerk. Then, the accounts receivable clerk manually creates a hard-copy invoice, which is
immediately mailed to the customer. After mailing the invoice, the clerk uses information on the stock
release to update the accounts receivable subsidiary ledger and general ledger from his computer
terminal. After the records are updated, the clerk files the stock release and shipping notice in the
accounts receivable department. Sometimes, the account receivable clerk reconciles the quantities from
the sales order and adjusts the account receivables.
Type Two Procedures of RCIATO Limited
Customers’ payments come directly to the general mailroom along with other mail items. The mail clerk
performs the different tasks, including (1) sorting the mail, (2) opening the customer payment envelope,
(3) removing the customer’s check and remittance advice, and (4) reconciling these two documents. The
clerk manually prepares two hard copies of a remittance list to control the checks andremittance advice.
He sends one copy to the accounts receivable department and the corresponding remittance advice.
The other copy of the remittance list accompanies the checks to the cash receipts department. Once the
checks and remittance list arrive in the cash receipts department, the treasurer performs the following
tasks: (1) reconciles the documents, (2) endorses the checks, (3) manually prepares three hard copies of
a deposit slip, (4) updates the cash receipts journal and the general ledgerfrom his computer terminal,
(5) sends the checks, and two copies of the deposit slip to the bank, and
(6) files the third copy of the deposit slip and the remittance in the department.
The accounts receivable clerk receives the remittance list and remittance advice from the mailroom and
reconciles these two documents. He then updates the accounts receivable subsidiary ledger and the
general ledger. Then, the account receivable files the two documents in the department.
Required
Based on the above information, prepare a report for the head of the accounting department of RCIATO
Limited to evaluate their revenue cycle. In your report, you need to include the following items:
1. “Establishing separate departments for warehousing, shipping and inventory control will
enhance internal controls over the inventory.” Discuss this statement in the light of the existing
revenue cycle of RCIATO Limited.
2. In the light of our discussion during interactive tutorials, describe potential internal control
weaknesses in the sales order processing procedures and cash receipts procedures of RCIATO
Limited.
3. In the light of our discussion during interactive tutorials, discuss the potential risks associated
with the internal control weaknesses identified in Section (2) above.
4. Based on Section (3) above, what types are frauds are possible. Hint: we have discussed different
types of frauds in the interactive tutorial and lectures. Your discussion should be based on these contents.
ASSIGNMENT STRUCTURE
The report should include the following components.
HI5019 T1 2022: Individual Assignment (Assessment 1) Page 4 of 7
Holmes Institute Assignment Cover Sheet
The Holmes Institute Assignment Cover Sheet is available at the end of menu item Assessments on the
Blackboard.
Executive Summary
The executive summary should be concise and not involve too much detail. It should make commentaryon
the main points only and follow the sequence of the report. Write the executive summary after the
report is completed, and once you have an overview of the whole text.
Table of Contents
This needs to show a logical listing of all the sub-headings of the report’s contents. Note this is excluded
from the total word count.
1. Introduction
Typically, the introduction is a short paragraph that includes background, scope and the main points
raised in the order of importance. There should be a brief conclusion statement at the end of the
introduction.
2. Main Body Paragraphs with Numbered Sub-headings
This section contains detailed information which elaborates on the main points raised in the
introduction. Each paragraph should begin with an exact topic sentence, then supporting sentences
with facts and evidence obtained from research and finish with a concluding sentence at the end.
3. Conclusion
This section contains a logical and coherent evaluation of the work you have performed during this
assessment.
4. References
Please see the section “Assessment Design – Adapted Harvard Referencing” for the referencing
guidelines.
5. Appendices
This section includes any additional explanatory information which is supplementary and/or graphical
to help communicate the main ideas made in the report. Refer to the appendices in the main body
paragraphs as and where appropriate. (Note this is excluded from the total word count.)
Note: The report should be grounded on relevant literature, and all references must be cited appropriately and
included in the reference list.
Assessment Design – Adapted Harvard Referencing
As a pilot program, Holmes is implementing a revised Harvard approach to referencing. The
following guidelines apply:
1. Reference sources in assignments are limited to sources that provide full-text access to the
source’s content for lecturers and markers.
2. The Reference list should be located on a separate page at the end of the essay and titled:
References.
3. It should include the details of all the in-text citations,
arranged A-Z alphabetically by author
surname
. In addition, it MUST consist of a hyperlink to the full text of the cited reference
source.
For example;

HI5019 T1 2022: Individual Assignment (Assessment 1) Page 5 of 7
Hawking P, McCarthy B, Stein A (2004), Second Wave ERP Education, Journal of Information
Systems Education
, Fall, http://jise.org/Volume15/n3/JISEv15n3p327.pdf
4. All assignments will require additional in-text reference details, which will consist of the
surname of the author/authors or name of the authoring body, year of publication, page
number of content, the paragraph where the content can be found.
For example;
“The company decided to implement a enterprise wide data warehouse business intelligence
strategies (Hawking et al, 2004, p3(4)).”
Non Adherence to Referencing Guidelines
Where students do not follow the above guidelines:
1. Students who submit assignments that do not comply with the guidelines will be asked to
resubmit their assignments.
2. As per the Student Handbook, late penalties will apply each day after the student/s have been
notified of the resubmission requirements.
3. Students who comply with guidelines and the citations are “fake” will be reported for
academic misconduct.

Marking Criteria
Marking criteria Weighting in
Total Grades
Discuss the given statement in light of the existing revenue cycle of RCIATO
Limited
4%
The potential internal control weaknesses in the SOPP and CRP of RCIATO
Limited
4%
The potential risks associated with the internal control weaknesses in the
SOPP and CRP of RCIATO Limited
4%
The potential frauds in the SOPP and CRP of RCIATO Limited 4%
Presentation and Referencing. 4%
TOTAL Weight 20%

HI5019 T1 2022: Individual Assignment (Assessment 1) Page 6 of 7

Marking Rubric
Excellent Very Good Good Satisfactory Unsatisfactory
(80-100%) (70-79%) (60-69%) (50-59%) (0-49%)
Discuss the given Present an excellent Present a very good Present a good discussion Present a reasonable Present a weak or
statement in light of the discussion on the given discussion on the given on the given statement in discussion on the given inadequate discussion on
existing revenue cycle of statement in the light of statement in the light of the light of the existing statement in the light of the given statement in the
RCIATO Limited. [4 the existing revenue cycle the existing revenue cycle revenue cycle of RCIATO the existing revenue cycle light of the existing
Marks] of RCIATO Limited. of RCIATO Limited. Limited. of RCIATO Limited. revenue cycle of RCIATO
Limited.
The potential internal Correctly identify all the Correctly identify most of Correctly identify some Correctly identify one to Fail to identify the
control weaknesses in the potential internal control the potential internal of the potential internal two potential internal potential internal control
SOPP and CRP of weaknesses in the SOPP control weaknesses in the control weaknesses in the control weaknesses in the weaknesses in the SOPP
RCIATO Limited. [4 and CRP of RCIATO SOPP and CRP of SOPP and CRP of SOPP and CRP of and CRP of RCIATO
Marks] Limited. RCIATO Limited. RCIATO Limited. RCIATO Limited. Limited.
The potential risks Correctly identify all the Correctly identify most of Correctly identify some Correctly identify one to Fail to identify the
associated with the potential risks associated the potential risks of the potential risks two potential risks potential risks associated
internal control with the internal control associated with the associated with the associated with the with the internal control
weaknesses in the SOPP weaknesses in the SOPP internal control internal control internal control weaknesses in the SOPP
and CRP of RCIATO and CRP of RCIATO weaknesses in the SOPP weaknesses in the SOPP weaknesses in the SOPP and CRP of RCIATO
Limited. [4 Marks] Limited. and CRP of RCIATO and CRP of RCIATO and CRP of RCIATO Limited.
Limited. Limited. Limited.
The potential frauds Correctly identify all the Correctly identify most of Correctly identify some Correctly identify one to Fail to identify the frauds
possible in the SOPP and potential frauds possible the potential frauds of the potential frauds two potential frauds possible in the SOPP and
CRP of RCIATO Limited. in the SOPP and CRP of possible in the SOPP and possible in the SOPP and possible in the SOPP and CRP of RCIATO Limited.
[4 Marks] RCIATO Limited. CRP of RCIATO Limited. CRP of RCIATO Limited. CRP of RCIATO Limited.
Presentation and An extensive amount of A broad range of quality An adequate range of An adequate range of Little or no peer
Referencing. [4 Marks] high-quality evidence peer-reviewed journal peer-reviewed journal peer-reviewed journal reviewed journal
from peer-reviewed references and other references was included references was included references were included,
journal articles and other sources was included and and used to support the and used to a basic extent and these were rarely
sources was included and used effectively to discussion. to support the discussion. used to support
used effectively to support the discussion. discussion effectively.
support the discussion.

Academic Integrity
Holmes Institute is committed to ensuring and upholding Academic Integrity, as Academic Integrity is
integral to maintaining academic quality and the reputation of Holmes’ graduates. Accordingly, all
assessment tasks need to comply with academic integrity guidelines. Table 1 identifies the six categories
of Academic Integrity breaches. If you have any questions about Academic Integrity issues related to
your assessment tasks, please consult your lecturer or tutor for relevant referencing guidelines and
support resources. Many of these resources can also be found through the Study Sills link on
Blackboard.
Academic Integrity breaches are a serious offence punishable by penalties that may range from
deduction of marks,
failure of the assessment task or unit involved, suspension of course enrolment,
or cancellation of course enrolment
.
Table 1: Six categories of Academic Integrity breaches

Plagiarism Reproducing the work of someone else without attribution. When a
student submits their own work on multiple occasions this is
known as
self-plagiarism.
Collusion Working with one or more other individuals to complete an
assignment, in a way that is not authorised.
Copying Reproducing and submitting the work of another student, with or
without their knowledge. If a student fails to take reasonable
precautions to prevent their own original work from being copied,
this may also be considered an offence.
Impersonation Falsely presenting oneself, or engaging someone else to present as
oneself, in an in-person examination.
Contract cheating Contracting a third party to complete an assessment task,
generally in exchange for money or other manner of payment.
Data fabrication and
falsification
Manipulating or inventing data with the intent of supporting false
conclusions, including manipulating images.

Source: INQAAHE, 2020
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