Case Study | To design an accounting information system for catering4teens catering business, a case study picked.

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Name
University
Course
Instructor

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Table of Contents
Executive summary.......................................................................................................................3
PART 1: Project plan....................................................................................................................4
Purpose and scope of the project..............................................................................................4
Group organization....................................................................................................................4
System Documentation and analysis..........................................................................................10
2.1 Organization/industry Description...................................................................................10
Catering4teens catering business........................................................................................10
Products and services...........................................................................................................10
Organization structure.........................................................................................................11
Industry trends.....................................................................................................................12
Competitive / operational challenges..................................................................................12
2.2 Purpose and key features of the AIS as designed............................................................13
Purpose and key features of Sales management system...................................................13
Purpose and key features of purchase management subsystem......................................14
Purpose and features of the payroll management system................................................15
2.3 How the AIS addresses the main issues specific to e-business systems.........................16
2.4 How the proposed AIS will provide data for managerial decision................................17
How the sales management subsystem will provide data for managerial decision?......17
How the purchase management subsystem will provide data for managerial decision?
................................................................................................................................................17
How the payroll management subsystem will provide data for managerial decision?..17
2.5 System documentation using narratives and flow charts...............................................18
PART 3: Internal controls analysis and Documentation, and Recommendation..................24
Sales management subsystem.................................................................................................24

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3.1 Control matrix for sales management subsystem.......................................................24
3.2 Control matrix explanation...........................................................................................25
3.3 Control analysis..............................................................................................................27
Purchase management subsystem..........................................................................................28
3.1 Control Matrix................................................................................................................28
3.2 Control matrix explanation...........................................................................................29
3.3 Control analysis..............................................................................................................31
Payroll management subsystem..............................................................................................32
3.1 Control matrix................................................................................................................32
3.2 Control matrix explanation...........................................................................................33
3.3 Control analysis..............................................................................................................35
4.0 Conclusion..............................................................................................................................36
5.0 Recommendation...................................................................................................................36
References.....................................................................................................................................37

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Executive summary
This group consisting of three members came together to design an accounting information
system for catering4teens catering business, a case study picked. Catering4teens is a non-profit
culinary arts program offered by Outreach school to a selected interested number of its students
to instill in them both educational and entrepreneurial skills as well as offer them a channel for
earning stipends. The group identified the business processes encountered in the catering4teens
business daily operations and majored on the ones that involves accounting and would have a
great impact on the business were it designed correctly. The group designed three subsystems of
the accounting information system; the sales management subsystem, purchase management
subsystem, and the payroll management subsystem. This report shows the design for these three
subsystems. It first identifies and gives the outline of how the project would be implemented,
then gives a description of the organization under analysis, identifies the purpose and key
features of the selected subsystems, explains how the AIS would address the main issues of e-
commerce, explains how each of the subsystems will help in decision making, and gives a
system documentation and analysis of each of the subsystems through narratives and system
flow charts. The report then gives an analysis of the effectiveness and efficiency of each of the
subsystems through control matrix tables, which ascertains the worth of the AIS. The report
finally comes to an end with a conclusion and a recommendation to the catering4teens business
managers.

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PART 1: Project plan
Purpose and scope of the project
Catering4teens is a non-profit catering business under the culinary arts program administered by
Outreach school. The catering business aims to instill educational skills and entrepreneurial skills
in students while at the same time offering them a chance to earn stipends and credit scores
during their time in Outreach school. To enable the catering business to manage its accounts, pay
stipends to the student employees, and be able to grow in the near future, an accounting
information system must be implemented. This accounting system must take into consideration
all the business process involved in the operation of the business.
This group focused on the design of three major subsystems; the sales management subsystem,
the purchase management subsystem, and the payroll management subsystem. The sales
management subsystem covers the recording of all the sales transactions made, the purchase
management system covers recording of all the transactions involved during purchasing of an
agricultural product from vendors, and the payroll management subsystem deals with the
management of pay slips and payments done to the employees of catering4teens who provide
labor resources.
Group organization
The whole project was divided into three; project plan, system documentation and analysis, and
internal controls and documentation, and recommendation. Each of these divisions was allocated
to one group member who coordinated the progress in each of the assigned divisions. During a
division deliverable, tasks in a division were divided among the three members of the group with
the division leader coordinating the division of tasks based on the members’ strengths and
weaknesses. The following table shows a task schedule for the three divisions and member
assignment.

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Division leader Week(s) allocated Tasks
Member 1 1-2 Project plan and proposal
Member 2 3-5 System Documentation and
Analysis
Member 3 6-7 Internal control analysis and
documentation, and
recommendation
Quality control management
The three divisions are referred to as sprints. Whenever the group wants to start working on tasks
in a division, there will be a planning meeting called sprint planning where the group members
will physically meet to set the score card and qualities for the tasks that will be implemented
(Golfarelli, Rizzi, & Turricchia, 2012) and (Golfarelli, Rizzi, & Turricchia, 2013). The quality of
the results of the tasks under that division will then be checked against the score card set during
completion of the task. This will ensure the generation of quality work.
Communication
Communication will be done using e-mails, phone calls, and video calls. The group can also set
up video conferencing and discuss group progress through this. There will also be stand-up
progress meetings where progress of the tasks assigned to group members will be checked. This
will be coordinated by the division leader or a scrum master (Ringstad, Dingsøyr, & Moe, 2011).
Dispute resolution
Dispute resolutions were mediated and arbitrated by the leader of the division within which the
dispute occurs. Expected disputes are ideology based, format based and the time of submission
of the tasks allocated to the group members by the division leader. The verdict on the ideology to
follow in the implementation of the project will be based on the capability of the disputing
member to argue objectively and subjectively, and convince the whole group. Issues on deadline

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will be non-negotiable, all tasks delivered late will be fined on the person responsible and the
division leader.
File management
Sending and receiving of files involved in the project was done through the use secure file
sharing platforms like google drive and one drive. Other files were also shared through
WhatsApp which is also secure for sending files (Sahu, 2014). File naming was done depending
on the task the file delivers. If the task is project plan, then the file will be named project
plan.docx.
Security of files
This will be a major consideration because we want to avoid other groups accessing and copying
our work and getting penalized for plagiarism. We will advocate for the use of password
protection for files a feature offered by Microsoft for all its document creation programs (Huth,
Orlando, & Pesante, 2012).
Gantt chart

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