Question 1 (60 marks) â Development ofAccounting:
You are a Systems Accountant working as an independent consultant.You have been approached by a local small wholesaler who has grownsignificantly since they opened their business 5 years ago. Usingthe article by Kinkela (Kinkela, K. Journal of Finance andAccountancy 14 (Oct 2013)) as a starting point, provide a researchreport to the business that outlines the following:
⢠Differences between a cloud based accounting system and atraditional accounting system
⢠Advantages of a cloud based accounting system
⢠Potential risks in adopting a cloud based accounting system
Based on your findings make a recommendation on the use of acloud based accounting system for the wholesaler.
Question 2 (40 marks) â Internal Controls:
You have recently started in a new organisation as a FinancialAccountant. Part of this role involves supervising the GeneralAccounting Team. This team is responsible for the day to dayaccounting functions and period end reporting to management. Youhave early concerns about internal controls within the existingprocess. You have decided to undertake an initial internal audit ofthe General Ledger and Reporting process, specifically focusing onreliability, completeness and validity of the process. The scope ofthe investigation is to review:
a) Master file data
b) General Ledger Postings
c) Period End Postings
d) Reporting
Provide a 1,500 word business report to your manager, theFinancial Controller, identifying potential internal control risksthat may exist in each of the areas above (a-d). You must alsorecommend appropriate internal control measures to mitigate theidentified risks.
Question 1 (60 marks) â Development ofAccounting:
You are a Systems Accountant working as an independent consultant.You have been approached by a local small wholesaler who has grownsignificantly since they opened their business 5 years ago. Usingthe article by Kinkela (Kinkela, K. Journal of Finance andAccountancy 14 (Oct 2013)) as a starting point, provide a researchreport to the business that outlines the following:
⢠Differences between a cloud based accounting system and atraditional accounting system
⢠Advantages of a cloud based accounting system
⢠Potential risks in adopting a cloud based accounting system
Based on your findings make a recommendation on the use of acloud based accounting system for the wholesaler.
Question 2 (40 marks) â Internal Controls:
You have recently started in a new organisation as a FinancialAccountant. Part of this role involves supervising the GeneralAccounting Team. This team is responsible for the day to dayaccounting functions and period end reporting to management. Youhave early concerns about internal controls within the existingprocess. You have decided to undertake an initial internal audit ofthe General Ledger and Reporting process, specifically focusing onreliability, completeness and validity of the process. The scope ofthe investigation is to review:
a) Master file data
b) General Ledger Postings
c) Period End Postings
d) Reporting
Provide a 1,500 word business report to your manager, theFinancial Controller, identifying potential internal control risksthat may exist in each of the areas above (a-d). You must alsorecommend appropriate internal control measures to mitigate theidentified risks.
