Question 21 Why should an auditor be involved in the system design? [20 marks] Question 22 a) As an accountant of an organization, discuss why it might be necessary to initiate systems analysis. [6 marks] b) Giving reasons for your answer, discuss the accounting system you would recommend to a decentralized organization between a computerized accounting information system and a manual accounting information system. [14 marks] Question 23 RECYC Ltd is a medium sized recycling consultancy firm, which is currently experiencing rapid growth. This is evidenced by increased turnover. It has been able to develop a range of new consultancy and specialist business advisory services that it offers to its growing customer base. To cope with these developments, several organisation-wide initiatives have been launched over the past two years. The existing financial systems are struggling to cope with these developments, but replacement software is due to be installed within the next six months. The new system was justified partly because it could reduce costs, although precise details have not been given. The application software selected does not fit existing business processes exactly. However, it has the clear advantage of giving RECYC access to an industry best practice system and is identical to that used by all its main competitors and some of its clients. A three-person Project Steering Group has recommended that a phased approach to introduction should be used and has undertaken most of the project planning. A programme of events for implementing the system has been agreed, but is not yet fully operational. This group has not met for a while because the designated Project Manager has been absent from work through illness. You are Head of RECYC’s Central Support Unit. You also serve on the Project Steering Group. A Directors’ meeting is due to take place soon. The firm’s Managing Director has asked you to prepare and present a PowerPoint presentation to the other Directors on project management and implementation issues. You understand that the Directors are conscious that system implementation represents a form of further organisational change. They are asking questions about the approach that will be taken to the introduction of the new system, likely changes to practices, critical areas for success, system testing, support after implementation, system effectiveness, etc. REQUIRED: (a) List and describe the project management activities and variables addressed by your steering group. (8 marks)
Question 21 Why should an auditor be involved in the system design? [20 marks] Question 22 a) As an accountant of an organization, discuss why it might be necessary to initiate systems analysis. [6 marks] b) Giving reasons for your answer, discuss the accounting system you would recommend to a decentralized organization between a computerized accounting information system and a manual accounting information system. [14 marks] Question 23 RECYC Ltd is a medium sized recycling consultancy firm, which is currently experiencing rapid growth. This is evidenced by increased turnover. It has been able to develop a range of new consultancy and specialist business advisory services that it offers to its growing customer base. To cope with these developments, several organisation-wide initiatives have been launched over the past two years. The existing financial systems are struggling to cope with these developments, but replacement software is due to be installed within the next six months. The new system was justified partly because it could reduce costs, although precise details have not been given. The application software selected does not fit existing business processes exactly. However, it has the clear advantage of giving RECYC access to an industry best practice system and is identical to that used by all its main competitors and some of its clients. A three-person Project Steering Group has recommended that a phased approach to introduction should be used and has undertaken most of the project planning. A programme of events for implementing the system has been agreed, but is not yet fully operational. This group has not met for a while because the designated Project Manager has been absent from work through illness. You are Head of RECYC’s Central Support Unit. You also serve on the Project Steering Group. A Directors’ meeting is due to take place soon. The firm’s Managing Director has asked you to prepare and present a PowerPoint presentation to the other Directors on project management and implementation issues. You understand that the Directors are conscious that system implementation represents a form of further organisational change. They are asking questions about the approach that will be taken to the introduction of the new system, likely changes to practices, critical areas for success, system testing, support after implementation, system effectiveness, etc. REQUIRED: (a) List and describe the project management activities and variables addressed by your steering group. (8 marks)
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