Report of Accounting Information System 2022

Running head: ACCOUNTING INFORMATION SYSTEM
Business Report: Accounting Information System
Name of the Student:
Name of the University:

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Executive summary
The business report reflects the benefits of Business Intelligence (BI) dashboard in Laurel Pty
Ltd. The internal control challenges associated to expenditure and inventory management system
are identified here and its impacts are also elaborated here. Not only this but also, how BI helps
in decision making and improves manufacturing process are also illustrated in this report.

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Table of Contents
Introduction......................................................................................................................................3
1. Detail identification.....................................................................................................................3
a. Internal control weaknesses of Laurel Pty Ltd’s inventory management and expenditure
process.........................................................................................................................................3
b. Impact these weaknesses.........................................................................................................4
c. Practical internal controls which could be implemented by Laurel Pty Ltd............................5
2. Introduction of business intelligence and digital dashboard........................................................5
a. Definition of Business Intelligence..........................................................................................5
b. Use of BI and digital dashboard in Laurel Pty Ltd..................................................................6
i. Management decision making..............................................................................................6
ii. Efficiency of the manufacturing process.............................................................................7
Conclusion.......................................................................................................................................7
Reference.........................................................................................................................................9

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Introduction
In this new era of technical advancements and changing business environment the
process of inventory management and asset control require major attention of CEO and
accountant head (Chalmers, Hay & Khlif, 2019). This business report is developed for the
considered case scenario of Laurel Pty Ltd, an Australia based car parts manufacturing company.
The CEO of Laurel Pty Ltd is willing to expand their business for earning competitive
advantages and commercial revenue as well. It is identified that the company has some internal
control weaknesses those are needed to be resolved immediately.
These weaknesses are negatively impacting the inventory and asset management process
of the company. In order to combat these risks some practical control mechanisms will be
implemented in Laurel Pty Ltd are also illustrated in this business report. Apart from that, with
the implementation of Business Intelligence (BI) in digital dashboard the ways through which
the manufacturing process and the management decision making approach will be improved are
also elaborated in the report.
1. Detail identification
a. Internal control weaknesses of Laurel Pty Ltd’s inventory management and
expenditure process
The internal control challenges that the expenditure process and inventory management
of Laurel Pty Ltd faced as elaborated in the below section:

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Weaknesses with policy and procedures: Standard policies and procedures helps to
keep an business aligned to company objectives and best operating prcatices (Bauer et al., 2017).
Not only this but also it is one of the most effective underused tool used in internal control. The
company does not follow proper managerial rules and legal norms.
Weak documentation: For any organization supporting document maintenance is much
essential to control the internal and external activities. However, Laurel Pty Ltd does not use any
specific proper documentation format.
Lack of access control on Information System: In order to manage large set of data the
campy uses Information System that stores both the financial and personnel information of the
employees, customers, suppliers etc (Vovchenko et al., 2017). Apart from this, it also contains all
sales, manufacturing and supply related confidential data. However, the company does not have
control over its access.
b. Impact these weaknesses
As Laurel Pty Ltd does not follow proper legal rules, regulations and policies thus, the it
is impacting the sales and financial receivables, cash and banking management system, purchase
and accounting payable approaches etc.
Laurel Pty Ltd does not use improved quality documentation formats as a result
operational, functional and managerial data management is becoming a difficult job for the
working employees.
Due to limited control over access of Information System, data fetching has become
easier to the hackers and unwanted users.

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c. Practical internal controls which could be implemented by Laurel Pty Ltd
In order to control the weaknesses identified above the technical control prcatices which
are essential to be implemented by Laurel Pty Ltd are:
Implementation of Business Intelligence dashboard: BI will help the Laurel Pty Ltd to
identify trends by increasing the business efficiency, flexibility, reliability and scalability. The
self service tools will improve the relationship between the service providers and customers.
Use of encryption mechanism: Laurel Pty Ltd needs to incorporate encryption technique
to make sure that only authorized people will be able to access data from server.
2. Introduction of business intelligence and digital dashboard
a. Definition of Business Intelligence
Business Intelligence (BI) is defined as a technology driven technique, used in different
business organizations to analyze data. Not only for analyzing data but also for identifying the
way through which information can be presented in a form of actionable framework to direct the
executives, managers and other associates working corporate Business Intelligence process is
utilized (Atriwal et al., 2016). This process includes different tools, methodologies and
applications which enables the business organizations to gather information from internal and
external resources. It also makes to arrange those data for further analysis so that it can develop
and run different queries. The visual dashboard representation of the data helps the business
organization to create business reports. The process of decision making for the CEO and
executives become much easier and efficient as well.

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Primarily the Business Intelligence (BI) technique is used by the IT professionals, data
analytics etc. The BI based data analytics applications those are widely used by the business
organizations include Ad hoc analytics, online analytical processing, Mobile BI, Real time BI,
open source BI, collaborative BI etc (Listiyoko, Ardi & Maksum, 2018).
b. Use of BI and digital dashboard in Laurel Pty Ltd
i. Management decision making
Business Intelligence (BI) helps improving the decision making approach of business
organization. Laurel Pty Ltd should use BI to extract different important facts from huge
unstructured or semi structured information set. It helps to transfer those data into important
actionable data which will successfully enable the companies to develop informed strategic
decisions for improving the overall company’s overall operational and functional efficiency
(Fradi et al., 2017). The business productivity will be enhances after the use of BI technique. BI
makes sure that all the gathered information is utilized successfully without any kind of wastage.
The business conversion rate of Laurel Pty Ltd also gets improved with the implementation of
BI.
BI will help the marketing department of Laurel Pty Ltd to analyze the result gathered
from market campaign and other car manufacturing companies. It will help to get a better rate of
ROI. The sales department of Laurel Pty Ltd will be able to identify the best suited prcatices,
cost structure, process improvement and turnover rate with BI technique (Jayakrishnan et al.,
2018). On the other hand, recruitment process, employee turnover monitoring tracking for the
human resource will also become easier with the implementation of BI in Laurel Pty Ltd. As a

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whole the complete decision making process will become easier with BI due to its interactivity,
data visualization, application integration, database connectivity feature.
ii. Efficiency of the manufacturing process
Various Business Intelligence based tools are widely using by manufacturing companies
to improve the productivity rate efficiently. It is analyzed that, the BI technique will help Laurel
Pty Ltd to evaluate and better realize the efficiency of car parts production. Not only
manufacturing process of the company, but the customer will be benefited with the technique. It
helps giving quick response on the customer requirements and demand (Listiyoko, Ardi &
Maksum, 2018). It optimizes the labour and machine utilization and improves the order cycle
time of manufacturing with quality output.
The manufacturing process of Laurel Pty Ltd will be improved because the BI technique
is beneficial for tracking production performance, maintenance and car parts repairing as well.
BI can track the machine downtime along with the unplanned events. It gives quick response on
customer request and also helps to track the manufacturing history, backlog and current status
analysis as well (Schwartz et al., 2017). The other manufacturing areas on which BI can focus
include order, status, labour variance analysis, material variance analysis and product variance
measurement. Laurel Pty Ltd manufacturing department would be able to track the status of the
car parts, therefore can give better planning for further improvement.
Conclusion
The above discussion concludes that, the business of Laurel Pty Ltd is frequently getting
victimized due to lack of internal control and asset management mechanisms. In order to protect
confidential data and other intellectual properties from the fraud attacks the company ought to

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implement Business Intelligence in digital dashboard. There are many steps those could be taken
by the CEO to design an accurate control management system for Laurel Pty Ltd. it is very
essential for any company to identify the risks and deficiencies related to operational and
functional activities. It is also determined that, an effective internal control framework for
inventory management contains Laurel Pty Ltd’s plan of organization as well as procedures. It
will make sure that data are protected from unwanted users and evaluate performance of each
working employee which can promote the company’s operation efficiently. The BI in digital
dashboard will make sure that Laurel Pty Ltd’s decision making capabilities are improved high
time and the overall manufacturing process of the company in improved. It provides defined data
context, web bases access opportunities and visual representation to the clients.

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