Accounting Information System for Stratford on Murray

This assignment examines the implementation of an Accounting Information System (AIS) for Stratford on Murray. It analyzes the benefits of an AIS, including improved data security through physical measures and anti-virus software, and explores key principles and practices of budgetary control within the system. The document also outlines procedures for recording and storing financial data, emphasizing the importance of accuracy, compliance with legislation, and ethical considerations.

INTRODUCTION TO MARKETING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
TASK 2............................................................................................................................................3
Key features and code of practices for accounting system..........................................................3
Ethical considerations for financial reconstruction.....................................................................4
Key features of financial legislation related to tax consideration and reporting requirements...4
Outlining a range of consideration for accounting system specification.....................................4
Compare and contrast data protection method............................................................................4
Key principles and practice of budgetary control........................................................................5
Process and procedure for recording and storing financial data..................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Accounting Information System (AIS) is a software that gathers, warehouse, manage,
process and retrieve finacial data automatically that can be used by the policymakers for
decision-making purpose. Stratford on Murray delivers cosmetic items and giftware to the
buyers. Company had planned to implement AIS in the business, thus, the thrust of the paper is
to prpare a deep plan how the system can be implemented by the business successfully including
key consideration i.e. system specification, design, data protection, testing, configuration,
compliance, integrity, ethical implications and others.
TASK 1 Objectives of Accounting system: Major objective of developing accounting system is to
ensure that firm will receive entire records as per requirement and reports will be
prepared automatically. System specification: In system different options will be developed in respect to
preparing income statement, balance sheet or any other statement. System will be able to
operated in OS like Windows and Ubuntu with small space in hard disk.
 System design: In system there will be three functionalities like strategic, tactical and
operational as well as transaction processing systems. Within these functionalities there
will be different options available ( Mancini, Vaassen and Ameri, 2014). For example in
strategic system there will be options for ratio analysis etc.
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Figure 1 Accounting information system
(Source: Hribar, Kravet and Wilson, 2014 ) Documentation design: As part of documentation design varied items that need to be
covered in strategic and other components of AIS will be determined. Flow chart will be
prepared which will reflect way in which data will be send from one component to
another like from receiving and shippment section to ledger system. System Testing: Finally after development of entire software system testing will be done
and it will be identified that software that is developed is working properly (Ismail and
King, 2014). Security requirements: In order to ensure security ID password system will be
developed will make system secure. Moreover, only permitted people will be able to
enter in to accounts department. Recording processes: As part of recording process simply in start spreadsheet will be
generated in which name and amount related to entity will be recorded in the system and
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then same data will be transferred to journal system and ledger system. Thus, data will be
recorded and processed in proper manner Implementation plan: In order to implement system testing will be done by entering
varied transactions and after verification software will be installed in relevant systems. In
this way software will be installed in system (Smith and Binti, 2016). Training Schedules: In respect to training schedules on daily basis up to 10 days training
will be given to the employees at workplace. Compliance: As per requirement time to time company registration statements, annual
profit and loss statement, report of statements made to business and report on purchase
and sale of stock. In system with requirements compliance will be done. Integrity of system: Integrity refers to situation where accounting information must be
complete, unbroken, unimpaired and sound etc (Hribar, Kravet and Wilson, 2014). Reporting requirements: Buisness firms need to report their income statement and
balance sheet time to time to regulatory authority. There are strict rules and regulations in
respect to reporting and it is very important to do all these things perfectly in order to
aboid any legal action. Reporting Procedures: In software automated system will be developed and under this
on entry of transactions automatically different accounts will be developed and forwarded
to the relevant stakeholders like managers. Evaluation and modification of accounting system or continuous improvement: Time
to time accounting system will be evaluated and modified. Researchers will identify if
there any loopholes in same and accordingly changes will be made in the system.
TASK 2
Key features and code of practices for accounting system
There are lots of features of accounting system and under this there must be automatic
report generation feature. Aaprt from this, automatically performnance analysis must also be
supported by system. In accouting system raw values must be inputted for calculation purpose by
following accounting standards, policy and procedures (Adenike and Michael, 2016). By doing
so it can be ensured that right inputs are entered in to system for calculation purpose. There must
be specific accounting policy in an organization and must be followed for calculation purpose
and recording of transactions (Wijaya and et.al.,2015). By doing so it is esnsured that calculation
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is done in proper manner. In order to check whether accounting policies are performed in proper
manner one can enter fake transaction in system and can check that in what way employees
doing treatment. On loophole areas work can be done to improve system.
Ethical considerations for financial reconstruction
There are several ethical considerations needs to be comply with in implementing AIS.
All the parties engaged with the system need to work ethically without any misleading actiona
and fraudulent activities (Abdallah, 2014). People who entre data into the system must input
authentic data set and do not manipulate the reports and other key findings. In despite of this,
data privacy legislation need to follow to secure data safety.
Key features of financial legislation related to tax consideration and reporting requirements
In Australia, Financial Transaction Reports Act 1988 applies in administrating and
encorcing tax based laws. According to this, Stratford on Murray needs to provide correct
finacnail reports to the taxation authorities and pay tax timely. However, with reference to
financail reporting, company need to comply with Corporation Act 2001 according to which, a
compiled set of annual statement including income statement, balance sheet, cash flow
statements need to be constructed. With respect to AIS, standard business reporting (SBR)
approach also ned to be followed that applied on digital record keeping system and accounting
software. It allow firms to reduce their time invested in collating information in different form
and its submission.
Outlining a range of consideration for accounting system specification
There are range of factors needs to be taken into account for Software Requirement
Specification (SRS) including functional and non-functional requirements, interface and
requirement of software. Moreover, before deciding specfication, Stratford on Murray need to
look over the system specific attributes like reliability, availability, security, maintainability and
portability as well (Smith and Binti, 2016). With reference to product perspective, system
interface, hardware & software interface, communication interface and others. All the factors
need to be examined thoroughly in line with the AIS requirements.
Compare and contrast data protection method
AIS will be a password protected system in which, password will be inserted so that only
the authorized party can access the system. Thus, in order to run system, user will require login
ID and password for authentication. Moreover, system will be placed at a safe place to eliminate
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the threatening against physical loss or theft. Cables and switches will be keep locked addressing
safety ( Simkin, Norman and Rose, 2014). Computers are subjected to viruses therefore, anti-
virus software will be used to overcome the risk of hackers attack. However, such measures may
consumes too much cost, therefore, it is much better to take preventive measures to protect the
system unfront cost.
Key principles and practice of budgetary control
Budgetary control is a method of developing budget for future plan and examining actual
performance of the business entity with the targeted ones. It is the best way to evalaute
performance and take quality decisions to control cost, boost savings and maximize revenues of
the business. Stratford on Murray had decided to implement Accounting information system
which will utilize past years results of the business and accordingly, budgets will be designed for
the coming year (Abdallah, 2014). The system will enable company to track record of their
trading results and help firm in gaining an insight towards future by developing budget. Such
framework will assist firm in sound business planning and strong decisions.
Process and procedure for recording and storing financial data
Data will be recorded manually by staff member of Stratford on Murray complying with
key legislations and code of conduct. Interim audit or internal check will be maintained to make
sure that correct data is entered that is free from any manipulation and fradulent activities.
CONCLUSION
From the discussion, it become clear that AIS will really helpful for Stratford on Murray
to keep data secure in computerized form and generate customized reports as per the
requirements. The report inferred that ethical aspects, data protection, confidentiality are several
key legislation that must be complied with including adherene with code of conduct.
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REFERENCES
Books and Journals
Abdallah, A.A.J., 2014. The impact of using accounting information systems on the quality of
financial statements submitted to the Income and sales tax Department in
Jordan. European Scientific Journal, ESJ. 9(10).
Adenike, A.T. and Michael, A.A., 2016. Effect of Accounting Information System Adoption on
Accounting Activities in Manufacturing Industries in Nigeria.
Hribar, P., Kravet, T. and Wilson, R., 2014. A new measure of accounting quality. Review of
Accounting Studies. 19(1). pp.506-538.
Ismail, N.A. and King, M., 2014. Factors influencing the alignment of accounting information
systems in small and medium sized Malaysian manufacturing firms. Journal of
Information Systems and Small Business. 1(1-2). pp.1-20.
M Ancini, D.A.A., Vaassen, E.H. and D Ameri, R.A.A., 2014. Accounting information systems
for decision making. Springer,.
Simkin, M.G., Norman, C.S. and Rose, J.M., 2014. Core concepts of accounting information
systems. John Wiley & Sons.
Smith, J. and Binti Puasa, S., 2016, February. Critical factors of accounting information systems
(AIS) effectiveness: a qualitative study of the Malaysian federal government. In British
Accounting & Finance Association Annual Conference 2016.
Wijaya, R.E., and et.al.,, 2015. Paradigm Blurred: Opera Cake in Management Accounting
Information Research. Procedia-Social and Behavioral Sciences. 211. pp.859-865.
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