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Part1:

Recently you attended a presentation by Dr John, renowned entrepreneur and business leader, who spoke at length about the development of an accounting information systems and, what he referred to as the ‘life cycle approach’. After the presentation you returned to your workplace and discussed the virtues of this approach with your boss, John. John was extremely interested because he has become aware that the current accounting information systems is inadequate for the developing needs of the business. He asked you to do a number of things for him in your ‘new role’ as the Accounting Information Systems Development Officer.

1. Write a brief report identifying the role that would be expected of the management team in the development and design of a new accounting information system. The underlying issue is really the role you would expect John “your boss” to play.

2. Would you expect that the people who will use the new system should have a role in any analysis leading up to, in the selection of and implementation of the new accounting information system should one be selected?

3. Write a clear and comprehensive report on what would be involved in the adoption of a life cycle approach to adopting a new accounting information system. Specifically identify the stages that would need to be engaged in, and staff likely to be involved. John, your boss, also wishes to know whether consultant costs would be incurred?

Part 2:

As the internal auditor for Elegant Firm, you have been asked to document the company’s payroll processing system. Based on your documentation, Elegant Firm hopes to develop a plan for revising the current system to eliminate unnecessary delays in pay check processing. The head payroll clerk explained the system:

The payroll processing system at Elegant Firm is fairly simple. Time data are recorded in each department using time cards and clocks. It is annoying, however, when people forget to punch out at night, and we have to record their time by hand. At the end of the period, our payroll clerks enter the time card data into a payroll file for processing. Our clerks are pretty good—though I’ve had to make my share of corrections when they mess up the data entry.

Before the payroll file is processed for the current period, human resources sends us personnel changes, such as increases in pay rates and new employees. Our clerks enter this data into the payroll file. Usually, when mistakes get back to us, it’s because human resources is recording the wrong pay rate or an employee has left and the department forgets to remove the record.

The data are processed and individual employee pay checks are generated. Several reports are generated for management, though I don’t know what they do with them. In addition, the government requires regular federal and state withholding reports for tax purposes. Currently, the system generates these reports automatically, which is nice.

You are required to:

1. Prepare a context diagram to document the payroll processing system at Elegant Firm.

2. Prepare a document flowchart to document the payroll processing system at Elegant Firm.

Attachments:

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