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Autor: anton • December 26, 2010 • 911 Words (4 Pages) • 1,909 Views
Hardware and Software Selection
There is a necessity to have either hardware or software to integrate the accounting information into an automated system for viewing by the proper individuals. Below, Learning Team A will show who needs to access this information, what controls will be implemented, the type of reports to be generated from these hardware or software and importantly what type of information will be available through corporate Intranet and the Internet. Having the proper hardware and software integrating Riordan's data into automated systems will make life easier for those involved with all the accounting cycles, especially accounts receivable.
Who Needs Access To What Information
Many different departments of Riordan will need access to different levels of the new system. The accounting clerk needs access to enter and edit billings, payments, and adjustments of credits/debits, but only needs to view reports such as the General Ledger and Month End Reports. The General Accountant and the General Accounting Supervisor, on the other hand will need access to edit these reports. The Director of Accounting and Finance will need access to review and edit these reports as well as reports from other departments in the Finance area, such as Accounts Payable and Credit. The President, CEO, COO, and CFO will need access to view the entire system, from month end reports down to payment reports. Although, upper and middle management will normally not need to view the lower reports, questions arise from the month and year end reports that require investigation using reports such as payment histories and Agings.
The controls that need to be in place for this are preventive, detective, and corrective controls. To integrate the accounts receivable process into an automated system for Riordan Manufacturing, management needs to reduce the likelihood of risks happening in the future. Management needs to identify possible events that represent a problem to the firm then determine appropriate responses to those problems (Dunn, Cherrington, Hollander, 2004). A detective control is designed to uncover an undesired problem that has transpired. This control is necessary when the preventive control has failed (Dunn, et al, 2004). The third is the corrective control, which is designed to restore a system to an approved or last known good state. A company usually establishes corrective controls to remedy problems that are discovered by the detective controls. One advisable procedure that can be implemented for this control is establishing training programs that can teach employees how to use the new automated system that can help them perform their job functions more efficiently and effectively.
It is necessary to recognize that any control strategy has to be tailored to address the risks to objectives that management identifies as unacceptable for the integration. The objective should be detecting risks that are materially threatening the goals of the organization and to reduce them to the point that management is more willing to accept.
With regard to software and which one is best when dealing with accounts receivable, there are many different programs available. The main thing the company must look at when purchasing software is that the system works for the company. There are many reports that are useful to companies within the Accounts Receivable cycle. We will name the one report that is the most important and gives the most information