Analysing an Accounting Information System

Analysing an Accounting
Information System

EXECUTIVE SUMMARY
The report summarise, the method of recognising, receiving, and handling the firm's
earnings from higher earners depending on the details rendered is known as revenue cycle
management. A robust RCM step is crucial for a company’s practice's financial stability and
intention to maintain providing high-quality services to its customers. The report also includes,
departments for warehousing, shipping and inventory control is considered a necessary cost for
the added benefit of control over inventory, potential internal control weaknesses in the sales
order processing procedures and cash receipts procedures and potential risks associated with the
internal control weaknesses. The report also summarise the types of frauds related to the
companies.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
Main Body.......................................................................................................................................4
1. “The additional cost required to establish separate departments for warehousing, shipping
and inventory control is considered a necessary cost for the added benefit of control over
inventory.” Discuss this statement in the light of existing revenue cycle of RCE Limited........4
2. Describe potential internal control weaknesses in the sales order processing procedures and
cash receipts procedures of RCE Limited...................................................................................6
3. Discuss the potential risks associated with the internal control weaknesses...........................6
4. Types are frauds are possible to the company.........................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7