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HI5019 T XXXXXXXXXXMidTerm) Assessment 1: Individual Assignment 1 HOLMES INSTITUTE FACULTY OF HIGHER EDUCATION ASSESSMENT DETAILS AND SUBMISSION GUIDELINES Trimester T XXXXXXXXXXMidTerm) Unit Code...

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HI5019 T XXXXXXXXXXMidTerm) Assessment 1: Individual Assignment
1
HOLMES
INSTITUTE
FACULTY OF
HIGHER
EDUCATION


ASSESSMENT DETAILS AND SUBMISSION GUIDELINES
Trimester T XXXXXXXXXXMidTerm)
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:
• Demonstrate theoretical and practical knowledge of Accounting
Information System.
• Articulate the various transaction cycles, financial reporting,
and management reporting systems to technical and non-
technical stakeholders.
• Evaluate various internal control process of an accounting
information system.
Weight 20% of the total assessments.
Total Marks 20 Marks.
Word limit XXXXXXXXXXwords ± 10%.
Due Date The written report is due in Week 7, dated 30th September 2020, on
Wednesday at 11.59 pm.
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 your 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 Harvard referencing
style.
HI5019 T XXXXXXXXXXMidTerm) Assessment 1: Individual Assignment
2

• Include a minimum of ten (10) references, at least five (5) from peer-
eviewed journal relevant to the unit.
ASSIGNMENT DETAILS

Analysing the Accounting Information System of HARDA Fashion.
HARDA Fashion sells ready-to-wear fashion clothes to teenagers. The company has a 20-store
chain concentrated in the north-eastern part of the United States of America. Each store has
the experienced full-time staff consist of a manager and an assistant manager. The full-time
staff is paid a fixed salary. The full-time staff is assisted with a cashier and a sales assistant
who have comparatively less experience. The cashier and sales assistant are paid hourly
wages plus the commission based on the volume of sales. HARDA Fashion uses
unsophisticated cash registered with four-parts sales invoice to record each financial
transaction. These sales invoices for the sales transaction i
espective of the payment type.
The record-keeping starts with the sales assistant on the sales floor. The sales assistant fills the
sales invoices manually by providing the following information:
1. Records his or her employee number.
2. Enters the transaction details including clothes item number, description, quantity,
and the unit price.
3. Totals the sales invoice.
4. Calculates the discounts manually when appropriate.
5. Calculates the sales tax.
6. Finalise the sales invoice after calculating the grand total.
The sales assistant then forwards the sale invoice to the cashier and keeps one copy in the
sales book.
The cashier reviews this sales invoice and enters in the cash register. The cash register
mechanically validates the invoice, automatically assigning a consecutive number to the
transaction. The cashier is also responsible for getting credit approval on charge sales and
approving sales paid by cheque. The cashier gives (1) one copy of the invoice to the customer,
(2) retains the second copy as a store copy, and (3) the third for a bankcard, if a deposit is
needed. Returns are handled in exactly the reverse manner, with the cashier issuing a return
slip.
At the end of each day, the cashier sequentially orders the sales invoices and takes cash
egister totals for cash, bankcard, cheque sales, and cash and credit card return. These totals
are reconciled by the assistant manager to the cash register tapes, the total of the consecutively
numbered sales invoices, and the return slips. The assistant manager prepares a daily
econciliation report for the store manager’s review.
HI5019 T XXXXXXXXXXMidTerm) Assessment 1: Individual Assignment
3

The manager reviews cash, cheque, and credit card sales and then prepares the daily bank
deposit (credit card sales invoices are included in the deposit). The manager makes the deposit
at the bank and files the validated deposit slip.
The cash register tapes, sales invoices, and return slips are forwarded daily to the central data
processing department at corporate headquarters for processing. The data processing
department returns a weekly sales and commission activity report to the manager for review.
Required
Prepare a report to Chief Executive Officer of HARDA Fashion to evaluate its processes, risks,
and internal controls for its revenue cycle. In your report, you need to include the following
items:
1. Identify six strengths in HARDA’s system for controlling sales transactions.
2. For each strength identified, explain what problem(s) HARDA Fashion has avoided
y incorporating the strengths in the system for controlling sales transactions.
3. Identify two situational pressures in a company like HARDA Fashion that would
increase the likelihood of fraud.
4. Explain why some companies would choose to install a distributed computer system
ather than a centralised one.
ASSIGNMENT STRUCTURE
The report should include the following components.
1. Holmes Institute Assignment Cover Sheet
2. Executive Summary
The Executive summary should be concise and not involve too much detail. It should make
commentary on 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.
3. Contents Page
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.
4. Introduction
Typically, the introduction is a short paragraph which includes background, scope and the
main points raised in the order of importance. There should be a
ief conclusion statement
at the end of the introduction.
5. Main Body Paragraphs with Numbered Sub-headings
This section contains the 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.
HI5019 T XXXXXXXXXXMidTerm) Assessment 1: Individual Assignment
4

6. Conclusion
This section contains a logical and coherent evaluation based on a thorough and objective
assessment of the research performed.
7. 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.
Marking criteria
Marking criteria
Weighting in
Total Grades
Strengths in HARDA’s system for controlling sales transactions 6%
Problems that HARDA Fashion has avoided by incorporating the
strength in the system for controlling sales transactions
6%
Situational pressures that would increase the likelihood of fraud 2%
Reasons for companies to install a distributed computer system rather
than a centralised one
2%
Research quality 4%
TOTAL Weight 20%
HI5019 T XXXXXXXXXXMidTerm) Assessment 1: Individual Assignment 5

Marking Ru
ic
Excellent Very Good Good Satisfactory Unsatisfactory
XXXXXXXXXX% XXXXXXXXXX% XXXXXXXXXX% XXXXXXXXXX%) (0-49%)
Strengths in HARDA’s
system for controlling
sales transactions (6
Marks)
Present an excellent
discussion of strengths in
HARDA’s system with
supporting evidence
from the case.
Present a very good
discussion of strengths in
HARDA’s system with
supporting evidence
from the case.
Present a good discussion
of strengths in HARDA’s
system without
supporting evidence
from the case.
Present a reasonable
discussion of strengths in
HARDA’s system with
minor e
ors and/or
omissions.
Present a weak or
inadequate discussion of
strengths in HARDA’s
system with significant
e
ors and/or omissions.
Problems that HARDA
Fashion Limited has
avoided by incorporating
the strength in the system
for controlling sales
transactions (6 Marks)
Co
ectly identify all
problems that HARDA
Fashion has avoided with
supporting evidence
from the case.
Co
ectly identify most
problems that HARDA
Fashion has avoided with
supporting evidence
from the case.
Co
ectly identify most
problems that HARDA
Fashion has avoided
without supporting
evidence from the case.
Co
ectly identify most
problems that HARDA
Fashion has avoided with
minor e
ors and/or
omissions.
Fail to identify the
problems that HARDA
Fashion has avoided.
Situational pressures that
would increase the
likelihood of fraud (2
Marks)
Present an excellent
discussion of situational
pressures that would
increase the likelihood of
fraud.
Present a very good
discussion of situational
pressures that would
increase the likelihood of
fraud.
Present a good discussion
of situational pressures
that would increase the
likelihood of fraud with
minor e
ors and/or
omissions.
Present a reasonable
discussion of situational
pressures that would
increase the likelihood of
fraud with e
ors and/or
omissions.
Present a weak or
inadequate discussion of
situational pressures that
would increase the
likelihood of fraud with
e
ors and/or omissions.
Reasons for companies to
install a distributed
computer system rather
than a centralised one (2
Marks)
Present an excellent
discussion of reasons for
installing a distributed
computer system instead
of a centralised one.
Present a very good
discussion of reasons for
installing a distributed
computer system instead
of a centralised one.
Present a good discussion
of reasons for installing a
distributed computer
system instead of a
centralised one with
minor e
ors and/or
omissions.
Present a reasonable
discussion of reasons for
Answered Same Day Sep 23, 2021 HI5019

Solution

Hartirath answered on Sep 29 2021
165 Votes
Accounting
Accounting
Student Name:
Unit Name:
University Name:
Date:
Contents
Introduction    3
Six strengths in HARDA’s system for controlling sales transactions    3
Problem(s) HARDA Fashion has avoided by incorporating the strengths in the system for controlling sales transactions    4
Outstanding inventory management    4
Customizable and Consistent reports    4
Up to date financial information    5
Effective reconciliation approach    5
Identification of e
ors    5
Two situational pressures in a company like HARDA Fashion that would increase the likelihood of fraud    8
Reasons some industries would select to install a distributed computer system instead of centralized one    9
Advantages of DCS over centralized computer system    10
References    12
Introduction
HARDA Fashion sells ready-to-wear fashion apparel to teenagers. The business has 20 chain stores in the northeastern United States. Every store has experienced full-time employees, including a manager as well as an assistant executive. The salary for full-time employees is fixed. The dedicated employee is assisted by cashiers and sales assistants with relatively little experience. The wages of cashiers and sales assistants are hourly wages plus commissions depend on sales volume. It uses simple cash with four parts of sales invoices to record every financial transaction. Regardless of the payment type, these are sales invoices for sales transactions. Although cash registers are good in businesses, they also pose a threat. The report was prepared for the CEO of HARDA Fashion to evaluate its internal control of risks, processes, and revenue cycles. After examining several procedures, internal controls, and risks associated with HRDA's fashionable income model. This report will discuss the advantages of HARDA Company and the problems avoided by implementing the advantages, as well as the pressure of two situations that increase the possibility of fraud. This study also discussed the benefits of distributed networks over centralized networks. At the end of the report, conclusions will be discussed based on the entire report.
Six strengths in HARDA’s system for controlling sales transactions
· The salesperson is very young, the cashiers or sales assistants work part-time and charge commissions based on the sales volume.
· HRDA uses a sophisticated cash register (divided into four parts) to record each transaction.
· The salesperson gives the sales invoice to the cashier, who will check the order and enter the sales (AICPA, 2016).
· The manager makes daily reconciliation reports, and the manager makes bank deposits.
· The department of data processing returns the weekly sales moreover commission activity report to the director for review.
· The cashier enters each transaction in the register to verify the invoice mechanically, and the sales invoice is similar, regardless of the type of payment (Cuevas, 2018).
Problem(s) HARDA Fashion has avoided by incorporating the strengths in the system for controlling sales transactions
Outstanding inventory management
The main issues that HARDA Fashion can avoid using this advantage are consistent stock-outs as well as spreadsheet data input e
ors (Cuevas, 2018). The system enables the business to verify the movement of each fa
ic so that managers can avoid shortages. In this case, the AM can contact the sales assistant furthermore cashier to recognize the type of clothing that needs to be provided (Fu, Hsu and Xue, 2017). Moreover, the system enables the sales assistants to record enough data about the clothes sold, thereby avoiding the problem of spreadsheets data entry.
Customizable and Consistent reports
This system enables the business to ignore the issue of dealing with big data. Since transaction cashiers submit transaction details every day, the assistant manager prepares consistent and customizable reports. It is worth noting that processing large amounts of data may result in the loss of basic transaction details (Gürtler, 2010). Such as, preparing reports to depend on weekly transaction details can be attributed to information loss.
Up to date financial information
The company prevents the threats of inco
ect economic reports by using a system that can provide the newest financial information (Gürtler, 2010). Financial reporting is a need of any business; a co
ect cash register can make the business avoid the issue of preparing inco
ect financial reports.
Effective reconciliation approach
HARDA Fashion ignores the issue of unauthorized and fraud economic transactions by using easy cash registers (Yudhantaka, 2019). If transaction details are not cross-checked, issues for example unauthorized and fraudulent transactions are likely to happen.
Identification of e
ors
Omissions or commission e
ors are general in several industries. If not detected, these e
ors may adversely affect the company's financial reports (Cuevas, 2018). HARDA Fashion ignores such issues by implementing a cash register, which enables assistant managers to recognize e
ors.
Strength-
The sales person is very young, and the cashiers, as well as sales assistants,...
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