🏷️ LIMITED TIME OFFER: GET 20% OFF GRADE+ YEARLY SUBSCRIPTION →
Log in
HomeStudy Guides420,000AU10,000

AYB341 : AYB341 Full Set of Course Notes

218 views77 pages
lemonotter502
5 Jul 2013
School
QUT
Department
Accountancy
Course
AYB341
Professor
All

For unlimited access to Study Guides, a Grade+ subscription is required.

Document Summary

Lecture 1 introduction to financial forensics and business intelligence. Data are the raw pieces of information such as a transaction record, a click stroke on an internet site etc. Information is data to which business context and meaning has been added. It is data, which has been filtered, sorted, summarised, prioritised and presented, often in summary format. Example report of transactions by division: reports provide information for example an exception report. Value of information is constantly changing due to the large quantities of information collected by organisations today. The value of information to an organisation is dependent on how each organisation changes its data into information to assist day to day business decision making. Information is a commodity but has no value in itself. Its value is derived from its understanding and subsequent application. Fraud is the largest crime (in $ value) in australia. Two reasons its expanding: population increase, easier access to technology.

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers

Related Documents

BA 3340 Lecture Notes - Lecture 99: Third Normal Form, Group Decision-Making, Forensic Accounting
ochreeel360
BBG 101 Lecture Notes - Lecture 15: Usability, Computer Forensics, Business Intelligence
tealmammoth179
BA 3340 Lecture Notes - Lecture 99: Power User, Social Networking Service, Linkedin
ochreeel360

Related Questions

Role of Accounting Information System

What is the relationship between Accounting and an Accountinginformation system? (2.5 Marks)

• What has happened to the relationship over the years? (2.5Marks)

• What is accounting information? (1 marks)
• Name 4 uses of Accounting Information? ( 4 Marks)

• Use an example to illustrate the difference between data,information, and intelligence? (4 Marks)

• Discuss security concerns related to shadow data and businessintelligence technologies. (2 Marks)

• Discuss the role of accounting professionals in thedevelopment of shadow data. (2 Marks)

System Documentation

• What is system documentation? (1 Mark)

• Why is it important to know system documentation? ( 4marks)

• Explain the 4 elements that makes up the Data Flow Diagrams? (4 marks)

• Give an example of who or when one of these documents may berequired ( 2 marks)

• What are Flowcharts? (1 mark)
• List an example of an Input/output, processing and storage

Symbols (6 marks)

• Differentiate between different types of Flowchart? ( 6marks)

• If you were a new factory employee on your first day at a vastfactory, indicate which level Flowcharts would be required and

• If you were a new external auditor (assume that you have over10 years of experience but new to this factory) and wish to reviewthe strength of internal control of the same factory, indicatewhich Flowcharts you would require and why? ( 1.5 marks)

why? ( 1.5 marks)

ERP

• What sort of organisation would most benefit from having anERP ? (5 Marks)

• Describe some problems one might encounter from your readingswhen using an ERP? (5 Marks)

• How can a Supply Chain Management system and CustomerRelationship Management system help a company? (5 Marks)

Database

ABC is a large car retailer that also manufactures its ownbrand, assembles made-to-order cars from purchased components andsells fully assembled branded names. The Company also have as stocklots of spare parts that it usually need to help with the processabove.

You have been employed as a consultant to ABC.

What databases are available to help ABC capture, store, manageand manipulate data for decision making and reporting? (1 Mark) Useone of those databases to explain its operation? (3 Marks) What areits advantages and disadvantages of a database?

(6 Marks)

System Development

ABC is a non profit company. It has several branches and allof
them specialises in different operations. It has around 15different operations some of which are free food catering toelderly, free temporary accommodation to elderly, providing freecomputer training to elderly etc. The company receives grants fromgovernment and several local agencies and donation from the generalpublic.

One of the staff was heard saying “Our ERP cannot handlethe
amount of transactions and requirement. Last month, we helped
around 3000 elderly clients and received revenue from at least 30government and private agencies. The company has plenty of fundingfor the new ERP but just recently thought about getting a newERP”.

As a student who completed ACC200, what would you suggest thebest ways of getting the new ERP? Use the pros and Cons in youranswer about all the different methods of getting a new ERP.(15marks)

Woolworths is a major supermarket in Australia with over 500Outlets all around the country. The company is about to implement anew system.

As a student of ACC200, You have been asked to write a report onthe best way for this conversion to best suit the interest of thecompany. (15 Marks)

Controls

ABC is a company currently set up in Melbourne and currentlyoperating in all around Victoria. The operation of the company isgeneral cleaning offices and cleaning after constructionoperations.

Until now the company was only accepting cash payment from theclients upon delivery of services and also whenever possible onlymaking cash payment to employees and some suppliers.

Due to lack of business and pressure from clients, the companywill now also accept credit card payment from Businesses and set acredit account as well with payment to be made end of month.

Discuss the internal control/s necessary for this new procedurein billing. (10 marks)

Controls

XYZ is a company operating in wholesale wheelchairs repairs andretail sale. The company will be undergoing some changes inmanagement in a few weeks. You have been hired as part of the newmanagement to report on operations.

As part of your investigation, you found that all repairsservices were delegated to another company which belonged to theincumbent CEO’s wife. You also noticed that all the invoices fromthe company to XYZ were very costly and no detailed on the invoicesof the actual repairs. You also noticed that there was only 1option in for customers when paying the bills,

cash payment. It also came to your attention that XYZ did nothave a proper warehouse but all the stocks were being stored at aremote property owned by the CEO.

Write a report to the future management advising them on yourfindings and possible solution. (15 marks)

Controls

• Describe the Revenue cycle activities. Provide 3 examples ofpreventative controls suitable for the Revenue Cycle (15 Marks)

• Describe the Purchase Cycle activities. What are the mainactivities in the purchasing cycle that an organisation should beaware of from a control perspective? (15 Marks)

Controls

In the Revenue cycle, identify possible issues when using acredit note. (5 Marks)

What is/are the consequences of not using a Remittance Advice inthe revenue cycle? (5 Marks)

It is a current trend in many companies to leave the creditapplication as an informal process done by marketing managers.Discuss (5 Marks)

Controls

A survey recently done by reputable company found that receivingreports in many companies is almost inexistent. Some of theparticipants answers were as follows :- “ It is too timeconsuming”, “There is no staff to do it”, “I’m not required to fillout the report”.

As a student of ACC200, what are your thoughts? (10 marks)

Controls

Under what conditions is MRP more suitable than JIT and viceversa? (5 Marks)

Corporate Networks

What is a VPN and why would an organisation invest in one? (5marks)

What benefits can RFID provide to an organisation that wouldoutweigh the costs? (5 Marks)

What part does a router play in a simple network? (2 marks)

Discuss the difference between operating system software andapplication software and how they are used in a corporate network.(5 marks)

Robatelli's Pizzeria Case Study Introduction

On the morning of October 31st, Elaine Black, Chief I...Robatelli's Pizzeria Case StudyIntroduction On the morning ofOctober 31st, Elaine Black, Chief Information Officer atRobatelli's Pizzeria, was waiting for both Jim Saxton, databaseadministrator, and Peter Greyton, operations manager, to come toher office for a meeting. While waiting, Elaine was thinking aboutthe surge of telephone and Internet orders expected to be receivedthrough the company's customer order center within the next 12hours. Halloween had always been the most popular day of the yearfor people in the greater Pittsburgh area to order pizza fromRobatelli's. There were 53 restaurant locations to serve thesecustomers, but only one location to receive all of the orders andforward them to the right restaurant. Elaine's thoughts wereinterrupted as Jim and Peter entered her office. The followingconversation took place: ELAINE Well, guys, it's here again, ourbiggest day of the year. Not only is Halloween a busy day, but wehave the upcoming day after Thanksgiving, the week beforeChristmas, and Super Bowl Sunday. Can our current computer system'sinfrastructure and people keep pace with the orders we expect? JIMI think our systems are all running at peak performance. Weshouldn't have any computer concerns for today or those other busydays. PETER Everyone in the customer order center is focused onmaking sure that our customers get their pizzas as ordered. We haveplenty of people scheduled to work tonight, so we're good to go.ELAINE Terrific. But every time we face one of these peak salesdays, I start wondering about the long-term capacity andeffectiveness of our computer systems. Jim, we need to think longterm about our computer system. I was just reading an article thatI'd like you to take a look at. It's about Anheuser-Busch Companiesand their use of data mining. JIM I do agree with you, Elaine; weshould always be thinking about how newer IT systems can help us.Could you e-mail me the link to the article? ELAINE Sure, and Iwould like you to think about how we might use the same approach inour business. Peter, your order center people are doing a greatjob, but again there's something I'd like us to think about in thelong run. As you know, we now have to manually enter all customerorder center sales and store sales into our general ledger (GL). Ithink we could improve a lot of things if those sales areautomatically fed into our GL software. Why don't you think aboutany advantages you see for an automatic interface, and we'll lookat the costs compared to those advantages. How's that sound? PETERI'll do that. I'll give it some thought and work on a report aboutan automatic interface between our GL software and the point ofsale systems in our restaurants as well as the phone and Internetsales. How soon do you want to meet again to look at these issues?ELAINE Let's say, in two weeks at the same time. As Jim and Peterleft her office, Elaine continued to think about the features ofthe company's accounting information systems and whether or notdata extracted from these systems could facilitate the multipleneeds of the company. The focus had always been on providingaccurate financial accounting information from the variouslocations; however, the company's aggressive growth strategiesmeant increased emphasis on the system's ability to analyzedetailed customer information that could be translated intoincreased sales opportunities. Elaine knew the challenges theyfaced could very well affect the company's ability to maintain itscompetitive advantage. She realized that her department mustcontinually improve the company's information systems to help itachieve growth strategies. Operating state-of-the-art systems wasimperative to position the company to execute those growth plans.However, she was concerned about the possibility that restrictionsof the current information systems could actually prevent thecompany from doing what it wanted to do. Allowing restrictivesystems to prevent them from achieving business strategies was arisk that Elaine would not tolerate! Background Robatelli'sPizzeria is a great American success story. Started by DinoRobatelli in the 1960s, the business impetus was a family pizzarecipe. Introduced to the public at a church festival inPittsburgh's Little Italy, Robatelli's pizzas are now a recognizedtradition in the Greater Pittsburgh area. A full menu and localexpansion have led to its growing popularity over the years andhave helped it achieve nearly 50 percent of the area market share.Annual sales now exceed $100 million. Following is a timeline ofmilestones in the company's history: 1962 Dino and Gloria Robatellicontributed $500 and the family pizza recipe to a partnership thatopened the first Robatelli's Pizzeria. 1965 The Robatellis boughtout their business partners. 1967 The first Robatelli's franchiseopened. 1971–77 Dozens of new Robatelli's franchises openedthroughout the surrounding region. 1983 Home delivery servicebegan. 1992 A central, one-number calling system for allrestaurants was launched. 2003 Internet ordering began. The first“prototype pizzeria” opened. Today A total of 53 locations are inoperation.

Review the Robatelli's Pizzeria Case Study. Considering thenature of the relationship between Robatelli's Pizzeria home officeand its franchise owners, the company may be quite vulnerable totheft or fraudulent financial reporting committed by thesefranchise owners.

In 700 to 1,050 words, discuss the following: Describe threecomponents of the fraud triangle and how each would relate to afranchise owner's likelihood to defraud Robatelli's Pizzeria.Identify three types of fraud to which Robatelli's Pizzeria may besusceptible. Indicate whether the fraud is classified as managementfraud, employee fraud, vendor fraud, customer fraud, or computerfraud for each. Suggest an internal control that could beimplemented to prevent or detect the potential fraud for each.Design a 5- to 6-bulleted item code of ethics for Robatelli'sPizzeria. You may find guidance by searching the Internet forexamples.

Scenario: Your team has been hired to provide financial analysis for a start-up company, Bobble in Style, which produces customized bobble heads. The bobble heads are made out of less rigid materials and are more true to life than those of competitors.

The company inventors, Mr. and Mrs. Lee, are going to pitch their idea to Shark Tank in a few months, but first they need to have a better understanding of the business financials. The Lee’s are already creating and selling their product from their home-based office and work area. They know what costs are involved with making the bobble heads on a small scale, but they don’t have an understanding of financial figures beyond basic costs. They need you to make sense of various financial figures for them. The Project: There are several financial analysis tasks involved with this project, which are outlined below (#1-8). Once you have worked through each task, you will need to produce a PowerPoint presentation to introduce and highlight your findings. Your PowerPoint presentation should include a title slide, an executive summary slide(s), subsequent slides that illustrate your findings, any additional recommendations that you would like to make, and a conclusion slide. The PowerPoint presentation should be approximately 15-25 slides in length. Include notes in the presentation as needed. You will also need to create a written executive summary (one page in length). Your final submission will include the PowerPoint presentation, the executive summary, and an Excel file with relevant calculations.

1. Financial Statements: Develop an Income Statement for 20XX, Cash Flow Statement for 20XX, and Balance Sheet as of the end of 20XX based on the data provided below for year 20XX. All sales are collected when the sale is made and all expenses are paid when the expense is incurred. Explain the purpose of each financial statement. a. Income Statement Data for 20XX: • Units produced and sold = 420 • Sales ($80 per unit selling price) = $33600 • Cost of goods sold ($30 per unit, all variable costs) = $12600 • Labor = $0 (Mr. and Mr. Lee were the only ones working and did not pay themselves) • Advertising fees =$2000 • Bank fees = $150 • Phone/internet = $1200 • Shipping ($3 per unit) = $1260 • Utilities = $900 • Office supplies = $800 • Interest expense on note payable = $350 • Depreciation expense (straight line) = $800 • Income tax rate = 26 %

b. Other Financial Data for 20XX: • Proceeds from sale of equipment = $3000. The equipment originally cost $1000 and had accumulated depreciation of $200. • Purchase of equipment = $1600 (The machine is purchased on the last day of 20XX so no depreciation expense is recorded.) • Repayment of note payable = $5000 • Consider any data relevant from the income statement.

c. Balance Sheet Data for Beginning of 20XX: • Cash and cash equivalents = $10000 • Accounts receivable = $0 (Cash is received at time of sale) • Raw materials inventory = $10500 • Equipment = $5000 (This includes the $1000 cost of the equipment sold in 20XX). • Accumulated depreciation = $1,000 (This includes the accumulated depreciation of 200 for the equipment sold in 20XX. • Accounts payable = $0 (Cash is paid at the time of purchase.) • Note payable = $5000 (This is the note payable which is repaid in 20XX) • Common stock = $15000 • Retained earnings = $4500 2. Financial Ratios: Calculate the following financial ratios and explain the meaning of the results.

a. Net Profit Margin

b. Quick Ratio c. Debt-to-Equity Ratio 3. Cost Classification: The Lee’s have provided you with the following costs and relevant information that are assumed for year 20XY. A. Classify each of the costs (a. through j.) below under C. as a variable cost or a fixed cost.

B. Explain the importance of distinguishing between variable and fixed costs.

C. Prepare a budgeted income statement, assuming 600 units to be produced and sold, a per unit selling price of $85, an income tax rate of 28% and the following information. a. Cost of goods sold of $35 per unit b. Labor = $400/month •

One part-time employee will be hired to take care of packaging and shipping. This employee will be paid $10 per hour. He or she is estimated to work 40 hours total per month. c. Advertising fees = $3,000 d. Bank fees = $200 e. Phone/internet = $150 per month f. Shipping = $3 per unit g. Utilities = $100 per month h. Office Supplies = $900 i. Conference Exhibitor Fee = $3000 j. Travel Expenses for Conference (e.g. airfare, meals, taxi) = $1200

4. Net Present Value: The Lees are considering adding a new piece of equipment that will speed up the process of building the bobble heads. The cost of the piece of equipment is $42000. It is expected that the new piece of equipment will lead to cash flows of $17000, $29000, and $40000 over the next 3 years. If the appropriate discount rate is 12%, what is the NPV of this investment? Explain the findings.

5. Budget Preparation: The Lees believe that production and sales could double after being on Shark Tank which is scheduled in December of 20XY. They want to be prepared for this. Based on the budgeted income statement calculated above for 20XY, create a new budgeted income for 20XZ assuming that the production and sales is double the level of 20XY

. 6. Incremental Analysis: If production does increase dramatically after their presentation on Shark Tank, the Lees will need more space for production. They have two options. Option 1 is to rent out a spacious warehouse nearby. If they pursue this option, there rent will be $1200 per month and utilities are estimated to cost an additional $350 per month. Their second option, Option 2, is to rent a smaller storefront space that is also nearby. The storefront rent is $1350 per month. However, utilities will likely only cost an additional $150 per month. They want to compare their options over one year’s time (since each rental contract is a 1 year commitment). What is the incremental analysis if the Lees choose Option 1 over Option 2?

7. Break-Even Analysis: You have been asked to calculate how many units need to be sold to break even, based on the costs provided in task #3. Assume that only one conference will be attended and the estimated expenses associated with this conference are on target. Use the information in task #3 except do not consider taxes.)

8. Contribution Margin: Based on the Break-Even Analysis just performed, what is the contribution margin per unit and the total contribution margin?