Strategic Information Systems for the Business Enterprise

STRATEGIC INFORMATION
SYSTEMS FOR THE BUSINESS
ENTERPRISE

EXECUTIVE SUMMARY
Accounting information systems provides with tools and the systems designed for
collection and the display of the accounting information for enabling the executives and
managers for making effective decisions. This is considered pivotal component of the finance
office around the world. Report reveals that HARDA is having a strong accounting information
system for controlling sales transaction. The strengths have enabled the company in mitigating
many issues associated with sales transactions. Company has to analyse the situational processes
increasing likelihood of the fraud. Many of the companies use distributed accounting system so
that all the information about company is not stored over single system. In event of frauds entire
information is not hacked in distributed systems.

TABLE OF CONTENTS
EXECUTIVE SUMMARY.............................................................................................................2
TABLE OF CONTENTS................................................................................................................3
INTRODUTION..............................................................................................................................1
REPORT..........................................................................................................................................1
1. Identifying six strengths of controlling sales transaction in system of HARDA Fashion......1
2. Explaining problem that the Fashion has avoided by incorporation of strengths in systems to
control sales transactions.............................................................................................................3
3. Identifying situational pressures of the company such as HARDA which would be
increasing likelihood of the fraud................................................................................................5
2. Employee is dissatisfied with the hourly wages and sales are low not allowing them to earn
commissions................................................................................................................................5
4. Reasons behind companies choosing to install distributed computer systems instead of
centralised one.............................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUTION
Information refers to formal process for collection of data, processing of data into
information and also distributing information to the users. Purpose of the accounting information
is of collecting, storing, and processing accounting and financial data and producing information
reports which managers or the other interested parties could use for making strong business
decisions. AIS could also be manual system but most of the most of the accounting systems are
based on computer. The system is highly efficient in collecting and storing data concerning
financial activities of the organisation. Present report is based over HARDA Fashion that sells
ready to wear fashion clothes for the teenagers. Company had 20 stores chain concentrated in
north east part of USA. Present report evaluates the processes, risks and the internal control
system for the revenue cycle. It will analyse the strengths of the processes to control the sales
transactions.
REPORT
1. Identifying six strengths of controlling sales transaction in system of HARDA Fashion
HARDA is fashion store providing fashion clothes for teenagers. The company has full
time staff consisting of managers and assisting managers. Full time staff of the company is paid
fixed salary. Full time staff of the company is also assisted with the cashiers and the sales
assistant who are having less experience. Company pays its cashier and the sales assistant on
hourly wages plus commission over sales volume. The strengths of the systems that helps in
controlling sales transactions are :
1. Manual filling of sales invoice
The record keeping of sales transactions starts with the assistant over sales floor that
manually fills the sales invoices for ensuring that each and every information is correctly
recorded in the sales invoices. The sales invoices contain all the information relevant for
recording the transactions. It records employee number, details of all the deals regarding the item
number, quantity, descriptions and unit price (Kitsios and Kamariotou, 2016). Total of the
invoices by correctly reviewing it are made. Discounts are also calculated manually as discounts
are given at different terms and basis. Sales tax is also calculated after which grand total is made.
2. Review by cashier
1