SOLUTION: Strategic Information Systems for Business and Enterprise

HI5019 T1 2021 Assessment 1: Individual Assignment Page 1 of 9 HOLMESINSTITUTEFACULTY OFHIGHEREDUCATION ASSESSMENT DETAILS AND SUBMISSION GUIDELINESTrimesterT1 2021Unit CodeHI5019Unit TitleStrategic Information Systems for Business and EnterpriseAssessment TypeAssessment 1: Individual AssignmentAssessment TitleAnalysing an Accounting Information SystemPurpose of theassessment (withULO Mapping)Students are required to:• Critically evaluate the purpose and role of accountinginformation systems in today’s business environment [ULO 1].• Articulate the various transaction cycles, financial reporting,management reporting systems and ecommerce systems totechnical and non-technical stakeholders [ULO 2].• Appraise the risks inherent in computer-based systems/ERP,including the role of ethics and the various internal controlprocesses that need to be in place [ULO 4].Weight20% of the total assessments.Total Marks20 Marks.Word limit2000 words ± 10%.Due DateThe written report is due in Week 5 on Friday, dated 23rd April 2021, at11:59 PMLate submission incurs penalties of five (5) % of the assessment percalendar day unless an extension and/or special consideration has beengranted by Student Services prior to the assessment deadline.SubmissionGuidelines• All work must be submitted on Blackboard by the due date along witha completed Assignment Cover Page. HI5019 T1 2021 Assessment 1: Individual Assignment Page 2 of 9 • The assignment must be in MS Word format, double spacing, 12-ptArial font and 2 cm margins on all four sides of your page withappropriate section headings and page numbers.• Reference sources must be cited in the text of the report and listedappropriately at the end in a reference list using Adapted HarvardReferencing style. Please see the section Assignment Design –Adapted Harvard Referencing Section below.• Include a minimum of ten (10) references, at least five (5) from peerreviewed journal relevant to the unit. ASSIGNMENT DETAILSThe Revenue Cycle of RCE Limited.RCE Limited is a Queensland based wholeseller that deals in the rafting and campingequipment. In particular, RCE Limited serves outdoor sports camping retailers throughoutthe Queensland. Mr. Chris Doubler has recently joined the accounting department of RCELimited as a head of the department. Mr. Doubler gathered a wide range of data from hisdeparment using different sources to improve the operations of his departmetn. Afteranalysing this data, Mr. Doubler is concerned about the revenue cycle of RCE Limited.You are running an accounting consultancy and considered as the best consultant on theaccounting information system. Therefore, Mr. Doubler approached you to evaluate theirrevenue cycle. During the initial meeting, you suspect that the business activities and relateddata processing operations of the revenue cycle of RCE Limited might not closely associatedwith providing goods and services to customers and collecting their cash payments. Youfurther elaborated that the revenue cycle can be categorised into (1) sales order processingprocedures (SOPP), and (2) cash receipts procedures (CRP). Consequently, you requested thehead of the accounting department to describe the SOPP and the CRP of RCE Limitedseparately. This description is given below.Sales Order Procedures of RCE LimitedThe sales department encourages its customers to forward the orders in any form, includingmail, e-mail or fax. The sales clerk first converts these sales order into the standardised salesorder. For this purpose, the sales representative requests the missing information, if any. (Inthe light of our discussion during the Interactive Tutorials, please mention this missinginformation.) When the order is received, the sales clerk checks the customer’screditworthiness of the customer from his computer terminal. Sales clerk thinsk that checkingthe accounting record is not technical and he can perform these duties efficiently. Two yearsago, the sales clerk requested the accounting department to provide him with a list ofcustomers whose account receivables are written off. The sales clerk is still using thisinformation to check the creditworthiness of the customers. The sales clerk did notdifferentiate the new customers from the existing customers and he is using the sameHI5019 T1 2021 Assessment 1: Individual Assignment Page 3 of 9procedure to check the creditworthiness of the new customers. The customer’s order isrejected if the customer’s credit is not verified.The sales order processing is started after the credit verification. In particular, the sales clerkrecords the approved standardised sales order in the sales order system through his computerterminal. A digital copy of the order is distributed to the warehouse and the shippingdepartment terminals for further processing. The computer system automatically records thesale in the sales journal. The clerk files the hard copy of the customer order in the salesdepartment without reviewing the entry. Then, the receipt of the digital sales order promptson the computer terminal of the warehouse manager. This digital sales order has theassociated stock release and the shipping notice. These documents play an important role inthe transation processing system. The warehouse manager has access to these documents. Forfurther processing, the warehouse manager prints out the sales order, the stock release, andthe shipping notice. Using the stock release copy, a warehouse clerk picks the selected itemsfrom the shelves and sends them to the shipping department along with the stock release andthe shipping notice. The warehouse manager then updates the inventory subsidiary ledgerand the general ledger control account from his computer terminal.The shipping clerk receives the physical stock, the stock release, and the shipping notice fromthe warehouse manager. The shipping clerk matches them to the corresponding digital salesorder displayed on his terminal. If everything matches, he prints out three hard copies of thebill of lading and a packing slip. The shipping clerk sends two copies of the bill of lading andthe packing slip, along with the goods, to the carrier. The stock release copy and the shippingnotice are sent to the accounts receivable department. The third bill of lading copy is filed inthe shipping department. Account receivable clerk receives the stock release and shippingnotice from the shipping clerk. Then, the accounts receivable clerk manually creates a hardcopy invoice, which is immediately mailed to the customer. After mailing the invoice, theclerk uses information on the stock release to update the accounts receivable subsidiary ledgerand general ledger from his computer terminal. After the records are updated, the clerk filesthe stock release and shipping notice in the accounts receivable department. Sometimes, theaccount receivable clerk reconciles the quantities from the sales order and adjusts the accountreceivables.Cash Receipt Procedures of RCE LimitedThe payments of customers come directly to the general mailroom along with other mailitems. The mail clerk performs the different tasks, including (1) sorting the mail, (2) openingthe customer payment envelope, (3) removing the customer’s check and remittance advice,and (4) reconciling these two documents. To control the checks and remittance advices, theclerk manually prepares two hard copies of a remittance list. He sends one copy to theaccounts receivable department, along with the corresponding remittance advices. The othercopy of the remittance list accompanies the checks to the cash receipts department. Once thechecks and remittance list arrive in the cash receipts department, the treasurer performs thefollowing tasks: (1) reconciles the documents, (2) endorses the checks, (3) manually preparesthree 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 thebank, and (6) files the third copy of the deposit slip and the remittance in the department.HI5019 T1 2021 Assessment 1: Individual Assignment Page 4 of 9The accounts receivable clerk receives the remittance list and remittance advice from themailroom and reconciles these two documents. He then updates the accounts receivablesubsidiary ledger and the general ledger. Then, account receivable files the two documents inthe department.RequiredBased on the above information, prepare a report for the chief financial officer of RCE Limitedto evaluate their revenue cycle. In your report, you need to include the following items:1. “The additional cost required to establish separate departments for warehousing,shipping and inventory control is considered a necessary cost for the added benefit ofcontrol over inventory.” Discuss this statement in the light of existing revenue cycle ofRCE Limited.2. In the light of our discussion during Interactive Tutorials, describe potential internalcontrol weaknesses in the sales order processing procedures and cash receiptsprocedures of RCE Limited.3. In the light of our discussion during Interactive Tutorials, discuss the potential risksassociated 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 discusseddifferent types of frauds in the interactive tutorial and lectures. Your discussion should be basedon these contents.ASSIGNMENT STRUCTUREThe report should include the following components.1. Holmes Institute Assignment Cover SheetThe Holmes Institute Assignment Cover Sheet is available at the end of menu itemAssessments on the Blackboard.2. Executive SummaryThe executive summary should be concise and not involve too much detail. It should makecommentary on the main points only and follow the sequence of the report. Write theexecutive summary after the report is completed, and once you have an overview of the wholetext.3. Table of ContentsThis needs to show a logical listing of all the sub-headings of the report’s contents. Note thisis excluded from the total word count.4. IntroductionTypically, the introduction is a short paragraph which includes background, scope and themain points raised in the order of importance. There should be a brief conclusion statementat the end of the introduction.HI5019 T1 2021 Assessment 1: Individual Assignment Page 5 of 95. Main Body Paragraphs with Numbered Sub-headingsThis section contains the detailed information which elaborates on the main points raised inthe introduction. Each paragraph should begin with an exact topic sentence, then supportingsentences with facts and evidence obtained from research and finish with a concludingsentence at the end.6. ConclusionThis section contains a logical and coherent evaluation based on a thorough and objectiveassessment of the research performed.7. AppendicesThis section includes any additional explanatory information which is supplementary and/orgraphical to help communicate the main ideas made in the report. Refer to the appendices inthe main body paragraphs, as and where appropriate. (Note this is excluded from the totalword count.)Note: The report should be grounded on relevant literature, and all references must be citedappropriately and included in the reference list.Assessment Design – Adapted Harvard ReferencingHolmes will be implementing as a pilot program a revised Harvard approach to referencing.The following guidelines apply:1. Reference sources in assignments are limited to sources which provide full textaccess 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 andtitled: References.3. It should include the details of all the in-text citations, arranged alphabetically A-Zby author surname. In addition, it MUST include a hyperlink to the full text of thecited reference source.For example;P Hawking, B McCarthy, A Stein (2004), Second Wave ERP Education, Journal ofInformation Systems Education, Fall, http://jise.org/Volume15/n3/JISEv15n3p327.pdf4. All assignments will require additional in-text reference details which will consist ofthe surname of the author/authors or name of the authoring body, year ofpublication, page number of content, paragraph where the content can be found.For example;“The company decided to implement a enterprise wide data warehouse businessintelligence strategies (Hawking et al, 2004, p3(4)).”HI5019 T1 2021 Assessment 1: Individual Assignment Page 6 of 9Non Adherence to Referencing GuidelinesWhere students do not follow the above guidelines:1. Students who submit assignments which do not comply with the guidelines will beasked to resubmit their assignments.2. Late penalties will apply, as per the Student Handbook each day, after the student/shave been notified of the resubmission requirements.3. Students who comply with guidelines and the citations are “fake” will be reportedfor academic misconduct. Marking CriteriaMarking criteriaWeighting inTotal GradesDiscuss the given statement in the light of existing revenue cycle of RCELimited.4%The potential internal control weaknesses in the SOPP and CRP of RCELimited.4%The potential risks associated with the internal control weaknesses inthe SOPP and CRP of RCE Limited.4%The potential frauds in the SOPP and CRP of RCE Limited.4%Presentation and Referencing.4%TOTAL Weight20% HI5019 T1 2021 Assessment 1: Individual Assignment Page 7 of 9 Marking RubricExcellentVery GoodGoodSatisfactoryUnsatisfactory(80-100%)(70-79%)(60-69%)(50-59%)(0-49%)Discuss the givenstatement in the lightof existing revenuecycle of RCE Limited.[4 Marks]Present an excellentdiscussion on the thegiven statement in thelight of existingrevenue cycle of RCELimited.Present a very gooddiscussion on the thegiven statement in thelight of existingrevenue cycle of RCELimited.Present a gooddiscussion on the thegiven statement in thelight of existingrevenue cycle of RCELimited.Present a reasonablediscussion on the thegiven statement in thelight of existingrevenue cycle of RCELimited.Present a weak orinadequate discussionon the the givenstatement in the lightof existing revenuecycle of RCE Limited.The potential internalcontrol weaknesses inthe SOPP and CRP ofRCE Limited. [4Marks]Correctly identify allthe potential internalcontrol weaknesses inthe SOPP and CRP ofRCE Limited.Correctly identify mostof the potentialinternal controlweaknesses in theSOPP and CRP of RCELimited.Correctly identifysome of the potentialinternal controlweaknesses in theSOPP and CRP of RCELimited.Correctly identify oneto two potentialinternal controlweaknesses in theSOPP and CRP of RCELimited.Fail to identify thepotential internalcontrol weaknesses inthe SOPP and CRP ofRCE Limited.The potential risksassociated with theinternal controlweaknesses in theSOPP and CRP of RCELimited. [4 Marks]Correctly identify allthe potential risksassociated with theinternal controlweaknesses in theSOPP and CRP of RCELimited.Correctly identify mostof the potential risksassociated with theinternal controlweaknesses in theSOPP and CRP of RCELimited.Correctly identifysome of the potentialrisks associated withthe internal controlweaknesses in theSOPP and CRP of RCELimited.Correctly identify oneto two potential risksassociated with theinternal controlweaknesses in theSOPP and CRP of RCELimited.Fail to identify thepotential risksassociated with theinternal controlweaknesses in theSOPP and CRP of RCELimited.The frauds possible inthe SOPP and CRP ofRCE Limited. [4Marks]Correctly identify allthe frauds possible inthe SOPP and CRP ofRCE Limited.Correctly identify mostof the frauds possiblein the SOPP and CRPof RCE Limited.Correctly identifysome of the fraudspossible in the SOPPand CRP of RCELimited.Correctly identify oneto two frauds possiblein the SOPP and CRPof RCE Limited.Fail to identify thefrauds possible in theSOPP and CRP of RCELimited.Presentation andReferencing. [4 Marks]An extensive amountof high-qualityevidence from peerreviewed journalarticles and otherA broad range ofquality peer-reviewedjournal references andother sources wasincluded and usedAn adequate range ofpeer-reviewed journalreferences wasincluded and used tosupport discussion.An adequate range ofpeer-reviewed journalreferences wasincluded and used to aLittle or no peerreviewed journalreferences wereincluded, and thesewere rarely used to HI5019 T1 2021 Assessment 1: Individual Assignment Page 8 of 9 sources was includedand used effectively tosupport discussion.effectively to supportdiscussion.basic extent to supportdiscussion.support discussioneffectively. HI5019 T1 2021 Assessment 1: Individual AssignmentPage 9 of 9Academic IntegrityHolmes Institute is committed to ensuring and upholding Academic Integrity, as AcademicIntegrity is integral to maintaining academic quality and the reputation of Holmes’ graduates.Accordingly, all assessment tasks need to comply with academic integrity guidelines. Table1 identifies the six categories of Academic Integrity breaches. If you have any questions aboutAcademic Integrity issues related to your assessment tasks, please consult your lecturer ortutor for relevant referencing guidelines and support resources. Many of these resources canalso be found through the Study Sills link on Blackboard.Academic Integrity breaches are a serious offence punishable by penalties that may rangefrom deduction of marks, failure of the assessment task or unit involved, suspension ofcourse enrolment, or cancellation of course enrolment.Table 1: Six categories of Academic Integrity breaches PlagiarismReproducing the work of someone else without attribution.When a student submits their own work on multipleoccasions this is known as self-plagiarism.CollusionWorking with one or more other individuals to complete anassignment, in a way that is not authorised.CopyingReproducing and submitting the work of another student,with or without their knowledge. If a student fails to takereasonable precautions to prevent their own original workfrom being copied, this may also be considered an offence.ImpersonationFalsely presenting oneself, or engaging someone else topresent as oneself, in an in-person examination.Contract cheatingContracting a third party to complete an assessment task,generally in exchange for money or other manner ofpayment.Data fabrication andfalsificationManipulating or inventing data with the intent of supportingfalse conclusions, including manipulating images. Source: INQAAHE, 2020