Analyzing an Accounting Information System

Analyzing an Accounting
Information System

EXECUTIVE SUMMARY
Accounting information systems (AIS) are instruments and systems that gather and
present financial statements so that auditors and management can make educated decisions. It is
regarded as a critical part in finance departments all over the world. The technologies are also
software-based and can be integrated with a corporation's IT infrastructure. This Report based on
the RCE limited RCE Limited is a wholesaler of rafting and hiking facilities situated in
Queensland. RCE Limited, in specific, adheres to recreational activities and camping stores
across Queensland. In this report identified risks and frauds that arise in the company and
analyzed revenue cycle.

Contents
EXECUTIVE SUMMARY.........................................................................................................................3
INTRODUCTION.......................................................................................................................................5
MAIN BODY..............................................................................................................................................5
1. Discuss this statement in the light of existing revenue cycle of RCE Limited.....................................5
2. Describe potential internal control weaknesses in the sales order processing procedures and cash
receipts procedures of RCE Limited........................................................................................................7
3. Discuss the potential risks associated with the internal control weaknesses........................................7
4. Types of Fraud.....................................................................................................................................8
CONCLUSION...........................................................................................................................................9
REFERENCES..........................................................................................................................................11

INTRODUCTION
Accountants, advisors, financial experts, administrators, accounting professionals
(CFOs), inspectors, supervisors, and tax establishment may use an accounting information
system (AIS) to accumulate, records, handle, analyze, extract, and record customer documents.
Qualified professional auditors collaborate intimately with AIS to achieve the highest degree of
consistency of a commercial organisation and monitor, and also to make financial records readily
accessible to all who require it while maintaining data integrity and security (Ugoani, 2020). This
report based on the RCE limited which is a Queensland based wholesaler which deals with
rafting and camping equipment. In this report consist of revenue cycle of RCE limited, discuss
about the sales order processing and cash receipt procedure. Moreover, define the risks related
with the internal control weakness recognized in RCE limited.
MAIN BODY
1. Discuss this statement in the light of existing revenue cycle of RCE Limited.
“The additional cost required establishing separate departments for warehousing, shipping and
inventory control is considered a necessary cost for the added benefit of control over inventory.”
The Revenue cycle is a series of ongoing commercial processes and related information
management functions involved in delivering products and services to consumers and receiving
payments made. People are the key source of external intelligence. It's referred to as
"transactional." RCE Limited is a wholesaler of rafting and camping supplies based in
Queensland. RCE Limited, in particular, caters to outdoor activities and camping stores across
Queensland. Mr. Chris Doubler has decided to join RCE Limited's finance team as the
department's director. Mr. Doubler collected a variety of data from the department using a
variety of sources in order to boost procedures. It is saying that additional cost required for
separate departments like sales department and cash receipt department (BULAT, 2019).
Sales department: Customers are encouraged to forward instructions to the sales
department in any format, like postal, e-mail, or fax. Such sales orders are first converted into