Group member responsibilities

Running head: ACCOUNTING INFORMATION SYSTEMS
Libby, R., 2017Khan, M.F., Ahsan, K. and Hussain, M.A., 2016Formentini
ACCOUNTING INFORMATION SYSTEMS
- Here4Beer Brewing Company
Name of the Student
Name of the University
<Student ID 1>
<Student ID 1>
<Student ID 1>
Author Note

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ACCOUNTING INFORMATION SYSTEMS
Table of Contents
Part 1: Project Plan..........................................................................................................................3
1.1 Group member responsibilities..............................................................................................3
1.2 Executive Summary...............................................................................................................3
Part 2: System documentation and analysis.....................................................................................4
2.1 About the organization..........................................................................................................4
2.2 Key features of AIS...............................................................................................................5
2.3 Issues mitigated with the use of the proposed AIS................................................................7
2.4 Providing data for managerial decisions................................................................................8
2.5 key features of software.......................................................................................................10
2.6 Similarity/ Contrast between the parts of AIS.....................................................................11
2.7 System Flowcharts and Narrative........................................................................................11
3. Internal Control Analysis and documentation and Recommendations......................................21
3.1 Control Matrix.....................................................................................................................21
3.2 Control matrix Explanation.................................................................................................24
Control matrix for purchase subsystem.................................................................................25
Control matrix for inventory subsystem................................................................................28
Control matrix for production subsystem..............................................................................30
3.3 Control analysis...................................................................................................................31
3.4 Managerial recommendations..............................................................................................31

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Reference.......................................................................................................................................32

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Part 1: Project Plan
1.1 Group member responsibilities
The main aim of the project is to identify the basic needs for integrating an accounting
information system within the organization so that it can provide better support towards the
functionality of the system. The project is going to be carried out with the help of three team
members. The organization that has been selected for carrying out the project is Here4Beer
Brewing Company. The sub system that has been selected for the organization is Purchase,
Inventory and Production subsystem. The focus will entirely on identifying the performance of
the Purchase system within the organization. Each team member focuses on determining the
activities that are going to be taken place within the system. Accounting information system is
considered as one of the important system that helps in improving the functionality of the
organization.
1.2 Executive Summary
The aim of the assignment is to propose an accounting system that will be able to provide
a better support towards the organization. The project will focus on determining the business
environment and will provide a suitable accounting information system that will be able to
enhance the selected subsystem. The Purchase sub system of Here4Beer Brewing Company will
be enhanced with the use of accounting information system. The paper will highlight the
activities that are performed by the organization and will ensure that each component has been
addressed successfully so that it becomes easy to determine the controls that are going to be
offered with the proposed system. The purpose of the paper is to recommend an accounting

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information system that will be able to enhance the performance of the subsystems associated
with the organization.
Part 2: System documentation and analysis
System documentation analysis has been developed for the purpose of understanding the
functionality that will be offered with the use of the selected sub system. The selected subsystem
for the Here4Beer Brewing Company organization is sale system. Purchase subsystem is
considered as one of the essential subsystem that helps in carrying out the systems functionality.
Accounting information system has the potential to improve the financial and accounting
activities associated with the organization (Chhabra, Bhushan and Chandna 2016). Thus it can be
stated that with the help of AIS it will become easy to maintain the flow of activities within the
organization. Beside this the two other subsystems that are being taken in consideration are
Inventory and Production subsystem. With the help of this subsystems it will become easy to
manage the performance of the organization.
2.1 About the organization
Here4Beer Brewing Company is one of the most renowned organization that is entirely
focused on creating microbreweries in the Northern territory. The organization entirely focuses
on manufacturing craft beers and ensures that the products prepared have dispatched successfully
towards the intended organization. The organization prepares the products in small 20 barrel
batches under supervisor administration and ensures that all the products have been refined
effectively towards the receivers (Collier 2015). The organization has also developed several
ways to measure the taste and also ensures that each details and feedbacks related to the products
have been shared with the customer. This organization offers developing a strong relationship
with the local beer distributors so that the organization can gain competitive advantages in the

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market. Throughout the production year the organization ensures that the product quality has
been maintained effectively so that it can offer a better result towards the customers. The
organization is known for the use of fitness natural ingredients in the manufacturing of beer.
After analyzing thee organizational performance it has been observed that the operations of
Here4 Beer Brewing company needs to be enhanced so that it can meet the need of the market by
enhancing the production. Here4Beer Brewing is owned by three partners Thuc Luc, Eliza
Maddox, Viresh Varughese, and Tala Green. The management of the organization works
differently and focuses on managing the different sectors associated with the production of beer.
Thuc Luc focuses on managing the bottling and shipping operations. On the other hand Tala
Green aimed at managing the marketing and sales department for the organization. Lastly
Brewmasters Eliza Maddox and Viresh Varughese will focus on managing the brewing processes
that takes place within the organization.
2.2 Key features of AIS
Accounting information structure is referred to the structure that is used by a business
organization for the purpose of collecting, processing, managing, retrieving, storing and
generation of financial reports. It becomes essential to develop a proper accounting information
system that will be able to provide proper support towards the customer and will ensure a better
management of the performance that are carried out within the system. With the help of this
developed business structures it becomes easy to manage the key activities associated with the
organization and ensures that each data has been shared effectively. Thus in order to enhance the
functioning of Purchase subsystem within the selected organization it is important to propose an
AIS that will be able to meet the needs of the customers (Diatmika, Irianto, Baridwan 2016).
Accounting information system that is proposed for the organization contains three key

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subsystems that will provide support towards the activities performed within the organization.
This includes transaction processing system, management reporting system and financial
reporting system. It is important for every organization to ensure that an effective way of
managing different subsystems have been offered towards the organization that will help in
executing the process of the systems. It is expected that the implementation of an effective
accounting information system has the potential to manage the activities and will be able to make
decisions in such a way that it can enhance the performance of the organization.
Transaction processing subsystem is considered as the central subsystem for the
accounting system that focuses on converting the economic events into its corresponding
financial transactions and ensures that all data has been recorded successfully within the system
(Formentini et al. 2015). TPS mainly focuses on dealing with the business events that are going
to be carried out frequently. It is expected that a thousand of transactions can occur within the
organization in a day and thus it becomes essential to enhance the efficiency by increasing the
volume of the transaction. With the implementation of transaction processing subsystem in the
organization it will become easy to manage the activities. The cycle will include the revenue,
conversion and expenditure.
Financial ledger system is one of the effective subsystem as it helps in carrying out the
activities associated with the organization. Due to the operational independency offered with the
system it becomes easy to manage the efficiency within the system (Jin, Li and Hu 2017). It has
been observed that the system will be able to manage the financial statement within the
organization.
Management reporting system has the ability to enhance the performance of the system
as it ensures better way of managing the information within the system. With the help of this

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system management it becomes easy to enhance the performance of the proposed information
system. FreshBooks is one of the best accounting software as this helps in managing the
accounting activities effectively within the business. FreshBooks has the potential to support
multiple tax rates and currencies. With the help of an accounting information system it has been
expected that the system will be able to manage the performance and will be generated purchase,
inventory and production subsystem. FreshBooks is considered as one of the effective
accounting software that will be able to provide better support towards the customers. The major
challenge that is faced with the current system of the organization is that it will be able to
provide better support towards the purchase, inventory and production subsystem. The
performance of the organization gets enhanced with the help of proper AIS. Moreover it has been
observed that the FreshBooks will be able to manage the records on time and will enhance the
performance of the organization. Cost saving feature is considered as one of the highlighting
features that is offered towards the organization.
2.3 Issues mitigated with the use of the proposed AIS
The main issue that is faced with the current system of the organization is with managing
the production that is offered with the system. The organization faces numerous risks that should
be addressed effectively in every stage of the operations of the company (Khan, Ahsan and
Hussain 2016). The organization consists of four sub-systems that include Purchase, purchasing,
Inventory and receiving.
Purchase is considered as one of the most crucial phase wiring the organization and thus
it becomes essential to determine the risks. This is the relationship that is developed particularly
in order to obtain an understanding that is accurate of the requirements of the customers and to
address those requirements.

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Next comes the inventory subsystem. There are various types of organizations and not all
the organizations experience the same level of risk of business for any variable that is given. The
issues that are mitigated by the purchasing subsystems are need analysis that are inadequate,
poor supply chain management, contract management that is inefficient and fraud and
corruption.
An Inventory is a list of the employees of the company but it also refers to the total
amount of money that an organization pays to its employees. The issues that are mitigated by the
Inventory subsystem are incorrect processing of the Inventory that is made with mistake or by
intention, miscalculations, lack of proper security and ignoring the patterns of Inventory (Laudon
and Laudon 2016). The issues that are caused due to faulty Inventory can be mitigated by
outsourcing Inventory, assessment of fraud risk and improving the internal policies and controls.
Next comes the production subsystem that refers to the producing the products by the
beer organization. There are certain issues that are needed to be mitigated within the production
subsystem (Libby 2017). The issues that are mitigated by the receiving orders subsystem are
fraud, cost, quality and risks of delivery. The main components that are associated with the
production subsystems are providing proper inputs that includes the raw materials, labor needed,
components and machines. The conversion process also comes under the production system as it
includes the operations.
2.4 Providing data for managerial decisions
All the subsystem of the company falls under the category of the transaction processing
system. The subsystems of the organization includes Purchase, Inventory, and Production. The
subsystems will conduct meetings and then they will take their decisions and they will pass their
decisions to their respective managers and the final decision will be taken by the managers. The

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subsystems can also take the help of management reporting systems. The management reporting
systems report on the internal operations of the company (Mancini 2016). The management
reporting systems provide reports that are periodic or scheduled, exception reports and Ad-ho
reports. The reports can then be presented to the respective managers of the subsystem. The
managers then take the final decision from the decisions that are written in the report.
Purchase Subsystem
Purchasing subsystem is considered as one of the key components that is associated with
the inventory management. Purchasing subsystem tends to play a crucial role within the
organization and thus it becomes essential to determine the cash flow within the system. The
main reason behind having a purchase system is to ensure that the purchasing process becomes
more efficient and provides support towards the companies so that they can reduce the overall
cost that is indulged in supply process.
Inventory Subsystem
Inventory subsystem has been considered as one of the essential subsystems as it helps in
tracking the inventory of the system and ensures that all the data have been recorded efficiently
within the system. FreshBooks is considered to be one of the crucial components of the inventory
subsystem as it has the potential to manage the performance of the systems.
Production subsystem
The production systems are the systems that includes all the features that are required in
order to gather the inputs, procedures or reprocesses the inputs and then deliver the goods, in this
case beer.

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2.5 key features of software
The software that can be chosen for the Accounting information system of the organization is
FreshBooks. One of the decisions that are biggest in every business is to make some good
investments in the accounting software solutions. FreshBooks accounting software is a cloud
accounting software that is designed particularly for the businesses that are small. The features of
the FreshBooks accounting software solutions include:
 Tracking of expenses: This accounting software solution can track the expenses. This saves
a lot of time for the business using FreshBooks.
 Accepting Credit cards: The FreshBooks accepts payments through credit cards by an online
portal that is customized. The client can sign in the customized through email and the send
money through credit cards.
 Financial reporting: The FreshBooks is useful in financial reporting. The organization can
quickly get the performance of the business in between board meetings. Whether the business
is running on profit or loss, FreshBooks can bring in all the data that are relevant thus
providing clarity of the financial situations.
 Provides clarity for all the team members: The best thing about the FreshBooks accounting
software solutions is that it opens up the communication between the departments of
accounting, executing team and the staffs of the organizations (Quinn and Oliveira 2018).
Everyone can log in the software and see what is going on and can also see the cash flow.
The benefits of the FreshBooks software solutions include:

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 Easy invoicing
 Time tracking that is effective
 The interface is simple and intuitive
 The payment processing options are integrated
 Information of the Inventory are accurate
 The price of the software is cheap.
2.6 Similarity/ Contrast between the parts of AIS
The subsystem of the organization is connected and there is similarity in the subsystem of
the organization. The systems should be connected with each other should be similar. If the
subsystems aren’t similar then the order will not be dispatched from the organization. The
subsystem of the organization falls under the transaction processing system. So they are
connected with each other. The contrast among them is that their roles are different in the
organization (Zeng et al. 2015). The Purchase subsystem deals with Purchase and marketing of
the company. The purchasing subsystem deals with the customers that are purchasing beers from
the organization. The Inventory subsystem deals with the amount that the organization pays to
every employee in the company. The receiving subsystem deals with the receiving of orders
from the customers.
2.7 System Flowcharts and Narrative
Purchasing subsystem
The purchase subsystem is considered as one of the crucial subsystem as it focuses
entirely on buying the services and achieving the products. With the help of a purchasing
subsystem it becomes easy to control the cash flow within the organization and this ensures that

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all the purchase related data have been entered within the system. Purchasing subsystem has
been used for the purpose of maintaining the efficiency and ensures that all data have been
maintained successfully. The purchase system has the ability to provide better support towards
the procurement process that will ensure a better way of managing the costs associated with the
system. The costs in the purchase also includes the inventory cost that is needed to hold the
system and setup costs. The key objectives that are associated with the purchase subsystem
includes validity, accuracy, existence, valuation, disclosure, accountability, and safeguarding.
The inputs that are associated with the purchases subsystem is that it orders sent to suppliers,
invoices and credit notes received from suppliers. Output include requisitions, supplier lists,
invoices and credit notes.
Each subsystem needs to be implemented successfully so that it can ensure a better way
of managing the system. The main role that is being performed by the purchase subsystem
includes identifying all the necessary requirements associated with the services and goods
provided towards the customers. The operational and strategic role of the purchase system varies
widely and are essential for managing a proper flow within the system. the strategic purchase
subsystem is mainly concerned with planning the high level tasks and ensures that each decision
have been effectively so that the procurement phase can be carried out successfully. On the other
hand the operational purchasing is referred to the purchasing factors that are essential for
carrying out a transaction. For the purpose of managing the purchase subsystem it becomes
essential to understand the supplier analysis is crucial and each contracts should be carried out
successfully so that it can meet the needs of the customers. This also helps in managing the stock
level of item and ensures that the costs associated with the inventory has been reduced with an

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efficient system. The purchase subsystem helps in managing the information in a better way and
also ensures that accurate records have been maintained within the system.
Level 0 dfd
The above diagram is developed for the purpose of understanding the flow of data that
takes place within the purchase subsystem. Customers are allowed to view the products after
making the search for products. The products data will be further moved to inventory access.
Staffs will add and update the products details in the inventory and will delete the necessary
products from the inventory management. The data will be going to store within the purchase
data storage so that it can be accessed whenever the user needs to access the data. The data will
flow in this manner within the purchase subsystem.
Flowchart

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Inventory subsystem
Inventory subsystem mainly focuses on managing the goods ingoing and outgoing
processes. This typically focuses on including the stock management phase and ensures that
proper process have been followed throughout the systems functionality. Inventory subsystem
focuses on providing proper support towards the purchase departments and will ensure that the
vendors are being processed successfully. FreshBooks will have a different purchasing

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subsystem that will be used for the purpose of managing the stocks. This will ensure that the
system has the potential to manage the inventory system more effectively. The shipping gets
done based on the needs of the sales system. Once the items have been delivered it becomes
essential to provide proper support towards the system. The inventory subsystem will help in
updating the requirements and ensures that the products are being added back to the stock lists.
In case the inventory lacks some of the products then the implemented accounting information
system will be able to update the inventory system.
Whenever a product has been purchased by the customers, the system automatically
notifies the inventory subsystem and will ensure that based on thee management data are shipped
successfully. It is essential to manage the stock effectively so that it can ensure a better way of
managing the products present within the system. Once all the shipments have been completed
successfully from the organizations ends than the system will focus on managing the stock levels
and will adjust automatically for the purpose of ensuring that exact number of stocks are being
displayed towards the intended customers. With the help of an inventory system it becomes easy
to categories the raw materials, manages the working process and finishes the goods effectively
on time. The inventory system varies depending on the business types and the products that are
being manufactured by the system. Beside this there are several management methods that are
offered towards the organization that includes just in time manufacturing, materials requirement
planning and days sales of inventory. Based on the needs of the organization inventory system is
being designed. The stock related data gets reconciled with the data that is stored within the
inventory subsystem so that it becomes easy to determine the transactions process effectively
within the system. Inventory system needs to be managed in such a way that it will be able to
manage the stocks and will be able to update the purchase manager about the orders that are

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needed to be filled in the system. The inventory control factor includes the availability raw
materials, the availability of goods and the work in process stage. Each factor needs to be
addressed effectively so that it can provide better support towards the performance of the
organization and will ensure that a proper control is gained over the system. The inventory
system needs to be managed effectively so that it can provide proper way of managing the
customers.
Level 0 dfd
The above data flow diagram is developed for the purpose to understand the flow of data
within the inventory system. Inventory system focuses on managing the several factors that are
associated with the system. Customer will first focus on providing details related to the products
in purchasing system and will further focus on making the purchase statement. Staffs will further
provide the details towards the recording purchase system from where the customer data will be

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fetched. This data will be further stored within the customer data. The purchase related data will
be stored within the purchase data store.
Flowchart
The above diagram is developed for understanding the flow of activities that is taking
place within the purchase subsystem. Purchase subsystem is considered as one of the crucial
subsystem thus it becomes very much essential to determine the activities that is taking place
within the subsystem.
Production subsystem

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The production subsystem is the most important subsystem of the Here4Beer brewing
company. The production system of the Here4Beer brewing company includes the inputs,
conversion procedure and the output.
1. The input consists of the raw materials, machines, man-hours, drawing and the other
paper works that are required. The raw material includes the materials that are required
for the production of beer. The raw materials include cereal grain, pure water, and yeast
of the brewer, flavour, colour and alcohol content. The machine includes the vats where
the beers are stored for the multiplication of the yeast and the machines that are used for
filling the bottles and the machines that are required for packaging the bottles.
2. A conversion procedure consists of the operations in the beer manufacturer company
Here4Beer. The operations can be either mechanical or manual or chemical. The
operation converts the raw materials that are required for the making of beer into beer.
The procedure also includes the activities that are supporting that helps the procedures of
conversion. The activities of supporting consists of the planning and control of the
production of beer, purchase of the materials that are raw that are needed for the
production of beer, storage of the receipts, quality control and many other things that are
required for the production of beer.
3. The output includes the finished products and the service, which in this case is beer. The
beer that is being produced is the output. The beer is then transported to the wine shop.
Examples of production system are as follows:
 Intangible goods: Let’s take an example of a service industry and that of a company that
develops software. Here, the program codes that are written are used as inputs. After that

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the codes are integrated in some databases and they are provided with an interface that is
user friendly. The output that is available to us is an application program that is
executable.
 Tangible goods: let’s take the example of the Here4Beer manufacturing company where
beer is produced. Here the raw material includes cereals, water, flavour and alcohol
content. The conversion procedure takes place and an intermediate drink is produced and
that on further processing or fermentation, the output that is beer is produced.
Hence, it can be said that the system of production is a combination of the three main
components that includes the raw materials, the procedure for converting the raw materials and
the output. It can also be said that everything that is done in order to produce the goods and the
services in order to accomplish the objective of the production is known as the production
subsystem. The production subsystem of the Here4Beer brewing company also has these three
procedure that are used for the making of beer and its beer are of best qualities.
Level 0 DFD

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The above diagram is being prepared for the purpose of analyzing the major activities
that is taking place within the production subsystem. The production subsystem plays a major
role as it focuses on providing the services accurately on the time.
Flowchart

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3. Internal Control Analysis and documentation and Recommendations.
3.1 Control Matrix
Purchase subsystem control matrix
Control Matrix
Control Goals of the Operations
System
Control goals for the
Information system
Ensure
effectiveness of
operations by
achieving the
following system
goals:
Ensure
efficient
employm
ent of
resources
Ensure
securit
y of
resour
ces
For Purchase
input ensure:
For
Purch
ase file
ensure
:
Recommended Control Plans A B C D E IV IC IA U U

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C A
P
1 Identifying price ✓ ✓ ✓ ✓ ✓
P
2 Data is maintained effectively ✓ ✓ ✓ ✓
P
3 Providing online services ✓ ✓ ✓
P
4
Bright and well-designed
screens for evaluation ✓ ✓ ✓ ✓
P
5
Providing advertisement based
on purchase data ✓ ✓ ✓
P
6 Details related to purchase ✓ ✓ ✓
P
7 Product details ✓ ✓ ✓
Controls not present in system
M
1 Registration of customer details ✓ ✓ ✓ ✓
M
2 Information related to stock ✓ ✓ ✓ ✓
KEY:
A Maintenance of the products processed IV Input Validity
B Purchase data organization IC Input
Completeness
C Documenting services offered IA Input Accuracy
D Updating order details U
C
Update
Completeness
E Acknowledging order requirements U
A Update Accuracy
Inventory control subsystem control matrix
Control Matrix
Control Goals of the Operations System Control goals for the
Information system
Ensure
effectiveness of
operations by
achieving the
following system
goals:
Ensure
efficient
employme
nt of
resources
Ensure
security
of
resourc
es
For Purchase
input ensure:
For
Purchas
e file
ensure:

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ACCOUNTING INFORMATION SYSTEMS
Recommended Control
Plans A B C D E IV IC IA U
C
U
A
P1 Identifying customer
needs ✓ ✓ ✓ ✓ ✓ ✓
P2 Categorizing the needs ✓ ✓ ✓ ✓ ✓ ✓
P3 Managing time of the
products ✓ ✓ ✓ ✓
P5 providing support ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Missing Controls
M
1 Providing order details ✓ ✓ ✓ ✓
KEY:
A Analyzing customer needs IV Input Validity
B Processing the orders IC Input
Completeness
C Preparing documents IA Input Accuracy
D Notifying the customers U
C
Update
Completeness
E Processing order details U
A Update Accuracy
Production subsystem Control matrix
Control Matrix
Control Goals of the Operations System Control goals for the
Information system
Ensure
effectiveness of
operations by
achieving the
following system
goals:
Ensure
efficient
employme
nt of
resources
Ensure
security
of
resourc
es
For Purchase
input ensure:
For
Purcha
se file
ensure:
Recommended Control
Plans A B C D E I
V IC IA U
C
U
A
P
1
Developing the product
concept ✓ ✓ ✓ ✓

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ACCOUNTING INFORMATION SYSTEMS
P
2
Researching about the product
data ✓ ✓ ✓ ✓
P
3 Providing final deigning ✓ ✓ ✓ ✓
KEY:
A Including design concept IV Input Validity
B Product analysis effectively IC Input
Completeness
C Researching the concept IA Input Accuracy
D Analysis and documentation U
C
Update
Completeness
E Testing phase U
A Update Accuracy
3.2 Control matrix Explanation
The control matrix is a tool that is used to examine a flowchart in order to determine the
plans of control that are appropriate to those procedures and to relate those plans in order to
process the goals of control. The control matrix have been developed individually for three
different subsystems.
The control matrix of this organization is based on the recommendations of the issues that
are mitigated by the subsystems. Each of the subsystems have some control recommendations
and the recommendations have some control goals. The control goals can be more than one. The
A, B, C, D and E of the control matrix represents the details of the operations of the control

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goals. In the control matrix there is a place for the control goals for the information system where
the Input validity, input completeness, update completeness and the update accuracy is given.
The complete control matrix has been given above. The above matrix has been developed in such
a way that it becomes easy to identify the overall performance. The control matrix has been
developed for the purpose of analyzing the recommendation for each processes.
Control matrix for purchase subsystem
P1- Identifying price
Purchase data organization: before purchasing any product it is important to ensure that each
data have been organized effectively within the store in such a way that it can provide a better
support towards the functionality.
Input accuracy: the input accuracy needs to be maintained properly so that it can provide better
support towards the purchase department of the organization. Each data needs to be entered
efficiently so that it can meet the needs of the customers.
Update accuracy: the update accuracy is highly offered towards the pricing as it helps in
managing the data and enhances the way prices are handled.
P2 Data maintained effectively
Maintenance of the products: each data related to the product needs to be maintained
successfully within the sheet so that it can provide better support towards the data.
Documenting services offered: product details needs to be documented effectively so that it can
provide better support towards the customers.

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ACCOUNTING INFORMATION SYSTEMS
Update completeness: the data maintained needs to be updated effectively within the system so
that it can provide a better support towards each transactions.
P3. Providing online services
Maintenance of the products: the details regarding the products are being highlighted in the
website so that it becomes easy to provide support towards the product maintenance phase.
Input accuracy: each product details should be described effectively on the website so that the
viewers can get a clear knowledge about the products.
P4. Bright and well-designed screens for evaluation
Documenting services offered: the technology that has been designed within the website needs to
be updated in the document part so that it can provide better support.
Acknowledging order requirements: proper order acknowledgement can be done with the help of
the well-designed technology.
Update completeness: the designed website offers a complete view and ensures that each data are
portrayed successfully within the system.
P5- Providing advertisement based on purchase data
Input accuracy: proper advertisement needs to be provided regarding the purchase system so that
it becomes easy to understand the performance.
P6- details related to purchase
Purchase data organization: the details related to the purchase are stored and organized
successfully within the system so that it can be accessed by the users.

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Acknowledging order requirements: the order related to purchase details are acknowledged
successfully so that it can ensure a better way of managing the data.
Input validity: this helps in validating the input effectively and ensures that each data are being
stored within the system.
P7- product details
Acknowledging requirements: the requirements associated with the product details needs to be
acknowledged effectively so that it can be stored within the system.
Input completeness: the data entered related to the products are complete and this will help in
processing the products request at the time of purchasing.
Update accuracy: the data related to product gets updated effectively within the system and will
ensure a better way of managing the customer’s data and the products of purchase.
Missing controls
M1. Registration of customer details
Documenting services offered: the customer details needs to be registered effectively so that it
can provide at the time of processing the products details.
Input accuracy: proper input accuracy needs to be maintained at the time of processing the
customer’s details.
M2. Information related to stock
Maintenance of the products processed: the products related to information are needed to be
stored within the system so that it can perform better way of managing the stocks.

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Input validity and update completeness: the input validity ensures that all data are entered
successfully within the system. This also ensures that each data are updated completely within
the system.
Control matrix for inventory subsystem
P1- identifying the customer needs
Analyzing customer needs: each requirements of customer are needed to be identified
successfully so that it becomes easy to analyze the business process.
Processing the orders: the order needs to be processed successfully so that it can provided
towards the customers on time.
Input validity and update completeness: the entered data needs to be checked whether valid or
not so that it can be used for the purpose of addressing the requirements. In addition to this the
completeness is also determined.
P2. Categorizing the needs
Analyzing the customer needs: based on the needs of the customers the products are analyzed so
that it can provide a better support towards the system.
Processing order details: the order details needs to be processed successfully so that it can
provide better support towards the inventory system.
Input validity, input accuracy and update completeness: the inventory system needs to maintain
the input validity effectively so that all the data can evaluated accurately. This will help in
managing the completeness.
P3. Managing time of the products

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Processing the order: the order processing needs to be done effectively so that it becomes easy
to manage the time and products. This will help in providing better support in identifying the
time products.
Input completeness and update completeness: the time needs to be managed effectively so that it
can enhance the completeness at managing the products.
P5. Providing support
Analyzing the customer needs: before providing support towards the products it becomes
essential to analyze the customer needs.
Processing order details: the order details needs to be maintained effectively so that proper
support can be provided towards the customers.
Missing controls
M1. Providing order details: before providing support towards the products it becomes essential
to analyze the customer needs.
Input accuracy: the input provided towards the customers is that there is a need to manage each
data effectively.
Control matrix for production subsystem
P1. Developing the product concept
Product analysis effectively: the analysis will be managed effectively as it will be able to provide
better support towards the production.

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Input validity: the input validity needs to be enhanced effectively so that the product can be
developed efficiently.
P2. Researching about the product data
Including design concept: the product design needs to be developed at this stage so that it can be
widely accepted by the customers.
Researching concept: the concept related to the product data needs to be researched effectively
so that it can provide better support towards the data analysis process.
Update completeness: the system will ensure that proper update is maintained along with
complete data.
P3. Providing final designing
Including design concept: the final design for the product design needs to be developed so that it
can be delivered towards the customers.
Product analysis effectively: the final design needs to be analyzed the effectively so that it can
provide better support towards the production system.
Input validity: the input validity gets enhanced with the use of final design.
3.3 Control analysis
The purchase subsystem has the control plan of providing proper goods to the customers.
More proper the goods more are the customers of the company. The control goals of the
purchasing subsystem should have proper requirements of the customers through the need

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analysis. Fulfill of demand, drive the value of the customers and build a good network are the
control goals for proper supply chain management (Trigo, Belfo and Estébanez 2016). For fraud
detection team the goal is to reduce the loss of money through credit cards and increase the
opportunities of revenue.
For the Inventory subsystem outsourcing Inventorys have the control goals of reduce cost
and reduce risks. Assessment of the fraud risk has the control goals of reduction of loss of
money. Improving the internal policies has the goal to establish the boundaries of the company
and allow communicating with the employees (Susanto and Meiryani 2019). The receiving
subsystem has the control goals of reduce loss of money, interact with the customers and deliver
the goods properly.
3.4 Managerial recommendations
The organization has four subsystems such as the Purchase, Inventory and Production
subsystem. The subsystems are working well for the organization and mitigating the issues of the
subsystems. But the company should upgrade its subsystems by investing money and buying a
proper information system such as management information system. The management
information system will handle the subsystems well and report the functions of these subsystems
to their respective managers for taking decisions for the company. The current subsystems are
working well but they need to be update the subsystem in order to have a huge customer base
and earn more profits.

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ACCOUNTING INFORMATION SYSTEMS
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