HI5019 T1 2021 Assessment 1: Individual Assignment Page 1 of 9 HOLMES INSTITUTE FACULTY OF HIGHER EDUCATION ASSESSMENT DETAILS AND SUBMISSION GUIDELINES Trimester T1 2021 Unit Code HI5019 Unit Title Strategic Information Systems for Business and Enterprise Assessment Type Assessment 1: Individual Assignment Assessment Title Analysing an Accounting Information System Purpose of the assessment (with ULO Mapping) Students are required to: • Critically evaluate the purpose and role of accounting information systems in today’s business environment [ULO 1]. • Articulate the various transaction cycles, financial reporting, management reporting systems and ecommerce systems to technical and non-technical stakeholders [ULO 2]. • Appraise the risks inherent in computer-based systems/ERP, including the role of ethics and the various internal control processes that need to be in place [ULO 4]. Weight 20% of the total assessments. Total Marks 20 Marks. Word limit 2000 words ± 10%. Due Date The written report is due in Week 5 on Friday, dated 23rd April 2021, at 11:59 PM Late submission incurs penalties of five (5) % of the assessment per calendar day unless an extension and/or special consideration has been granted by Student Services prior to the assessment deadline. Submission Guidelines • All work must be submitted on Blackboard by the due date along with a completed Assignment Cover Page. HI5019 T1 2021 Assessment 1: Individual Assignment Page 2 of 9 • The assignment must be in MS Word format, double spacing, 12-pt Arial font and 2 cm margins on all four sides of your page with appropriate section headings and page numbers. • Reference sources must be cited in the text of the report and listed appropriately at the end in a reference list using Adapted Harvard Referencing style. Please see the section Assignment Design – Adapted Harvard Referencing Section below. • Include a minimum of ten (10) references, at least five (5) from peerreviewed journal relevant to the unit. ASSIGNMENT DETAILS The Revenue Cycle of RCE Limited. RCE Limited is a Queensland based wholeseller that deals in the rafting and camping equipment. In particular, RCE Limited serves outdoor sports camping retailers throughout the Queensland. Mr. Chris Doubler has recently joined the accounting department of RCE Limited as a head of the department. Mr. Doubler gathered a wide range of data from his deparment using different sources to improve the operations of his departmetn. After analysing this data, Mr. Doubler is concerned about the revenue cycle of RCE Limited. You are running an accounting consultancy and considered as the best consultant on the accounting information system. Therefore, Mr. Doubler approached you to evaluate their revenue cycle. During the initial meeting, you suspect that the business activities and related data processing operations of the revenue cycle of RCE Limited might not closely associated with providing goods and services to customers and collecting their cash payments. You further elaborated that the revenue cycle can be categorised into (1) sales order processing procedures (SOPP), and (2) cash receipts procedures (CRP). Consequently, you requested the head of the accounting department to describe the SOPP and the CRP of RCE Limited separately. This description is given below. Sales Order Procedures of RCE Limited The sales department encourages its customers to forward the orders in any form, including mail, e-mail or fax. The sales clerk first converts these sales order into the standardised sales order. For this purpose, the sales representative requests the missing information, if any. (In the light of our discussion during the Interactive Tutorials, please mention this missing information.) When the order is received, the sales clerk checks the customer’s creditworthiness of the customer from his computer terminal. Sales clerk thinsk that checking the accounting record is not technical and he can perform these duties efficiently. Two years ago, the sales clerk requested the accounting department to provide him with a list of customers whose account receivables are written off. The sales clerk is still using this information to check the creditworthiness of the customers. The sales clerk did not differentiate the new customers from the existing customers and he is using the same HI5019 T1 2021 Assessment 1: Individual Assignment Page 3 of 9 procedure to check the creditworthiness of the new customers. The customer’s order is rejected if the customer’s credit is not verified. The sales order processing is started after the credit verification. In particular, the sales clerk records the approved standardised sales order in the sales order system through his computer terminal. A digital copy of the order is distributed to the warehouse and the shipping department terminals for further processing. The computer system automatically records the sale in the sales journal. The clerk files the hard copy of the customer order in the sales department without reviewing the entry. Then, the receipt of the digital sales order prompts on the computer terminal of the warehouse manager. This digital sales order has the associated stock release and the shipping notice. These documents play an important role in the transation processing system. The warehouse manager has access to these documents. For further processing, the warehouse manager prints out the sales order, the stock release, and the shipping notice. Using the stock release copy, a warehouse clerk picks the selected items from the shelves and sends them to the shipping department along with the stock release and the shipping notice. The warehouse manager then updates the inventory subsidiary ledger and the general ledger control account from his computer terminal. The shipping clerk receives the physical stock, the stock release, and the shipping notice from the warehouse manager. The shipping clerk matches them to the corresponding digital sales order displayed on his terminal. If everything matches, he prints out three hard copies of the bill of lading and a packing slip. The shipping clerk sends two copies of the bill of lading and the packing slip, along with the goods, to the carrier. The stock release copy and the shipping notice are sent to the accounts receivable department. The third bill of lading copy is filed in the shipping department. Account receivable clerk receives the stock release and shipping notice from the shipping clerk. Then, the accounts receivable clerk manually creates a hardcopy invoice, which is immediately mailed to the customer. After mailing the invoice, the clerk uses information on the stock release to update the accounts receivable subsidiary ledger and general ledger from his computer terminal. After the records are updated, the clerk files the stock release and shipping notice in the accounts receivable department. Sometimes, the account receivable clerk reconciles the quantities from the sales order and adjusts the account receivables. Cash Receipt Procedures of RCE Limited The payments of customers come directly to the general mailroom along with other mail items. The mail clerk performs the different tasks, including (1) sorting the mail, (2) opening the customer payment envelope, (3) removing the customer’s check and remittance advice, and (4) reconciling these two documents. To control the checks and remittance advices, the clerk manually prepares two hard copies of a remittance list. He sends one copy to the accounts receivable department, along with the corresponding remittance advices. The other copy of the remittance list accompanies the checks to the cash receipts department. Once the checks and remittance list arrive in the cash receipts department, the treasurer performs the following tasks: (1) reconciles the documents, (2) endorses the checks, (3) manually prepares three hard copies of a deposit slip, (4) updates the cash receipts journal and the general ledger from his computer terminal, (5) sends the checks and two copies of the deposit slip to the bank, and (6) files the third copy of the deposit slip and the remittance in the department.HI5019 T1 2021 Assessment 1: Individual Assignment Page 4 of 9 The accounts receivable clerk receives the remittance list and remittance advice from the mailroom and reconciles these two documents. He then updates the accounts receivable subsidiary ledger and the general ledger. Then, account receivable files the two documents in the department. Required Based on the above information, prepare a report for the chief financial officer of RCE Limited to evaluate their revenue cycle. In your report, you need to include the following items: 1. “The additional cost required to establish separate departments for warehousing, shipping and inventory control is considered a necessary cost for the added benefit of control over inventory.” Discuss this statement in the light of existing revenue cycle of RCE Limited. 2. In the light of our discussion during Interactive Tutorials, describe potential internal control weaknesses in the sales order processing procedures and cash receipts procedures of RCE Limited. 3. In the light of our discussion during Interactive Tutorials, discuss the potential risks associated with the internal control weaknesses identified in Section (2) above. 4. Based on Section (3) above, what types are frauds are possible. Hint: we have discussed different types of frauds in the interactive tutorial and lectures. Your discussion should be based on these contents. ASSIGNMENT STRUCTURE The report should include the following components. 1. Holmes Institute Assignment Cover Sheet The Holmes Institute Assignment Cover Sheet is available at the end of menu item Assessments on the Blackboard. 2. Executive Summary The executive summary should be concise and not involve too much detail. It should make commentary on the main points only and follow the sequence of the report. Write the executive summary after the report is completed, and once you have an overview of the whole text. 3. Table of Contents This needs to show a logical listing of all the sub-headings of the report’s contents. Note this is excluded from the total word count. 4. Introduction Typically, the introduction is a short paragraph which includes background, scope and the main points raised in the order of importance. There should be a brief conclusion statement at the end of the introduction. HI5019 T1 2021 Assessment 1: Individual Assignment Page 5 of 9 5. Main Body Paragraphs with Numbered Sub-headings This section contains the detailed information which elaborates on the main points raised in the introduction. Each paragraph should begin with an exact topic sentence, then supporting sentences with facts and evidence obtained from research and finish with a concluding sentence at the end. 6. Conclusion This section contains a logical and coherent evaluation based on a thorough and objective assessment of the research performed. 7. Appendices This section includes any additional explanatory information which is supplementary and/or graphical to help communicate the main ideas made in the report. Refer to the appendices in the main body paragraphs, as and where appropriate. (Note this is excluded from the total word count.) Note: The report should be grounded on relevant literature, and all references must be cited appropriately and included in the reference list. Assessment Design – Adapted Harvard Referencing Holmes will be implementing as a pilot program a revised Harvard approach to referencing. The following guidelines apply: 1. Reference sources in assignments are limited to sources which provide full text access to the source’s content for lecturers and markers. 2. The Reference list should be located on a separate page at the end of the essay and titled: References. 3. It should include the details of all the in-text citations, arranged alphabetically A-Z by author surname. In addition, it MUST include a hyperlink to the full text of the cited reference source. For example; P Hawking, B McCarthy, A Stein (2004), Second Wave ERP Education, Journal of Information Systems Education, Fall, http://jise.org/Volume15/n3/JISEv15n3p327.pdf 4. All assignments will require additional in-text reference details which will consist of the surname of the author/authors or name of the authoring body, year of publication, page number of content, paragraph where the content can be found. For example; “The company decided to implement a enterprise wide data warehouse business intelligence strategies (Hawking et al, 2004, p3(4)).”HI5019 T1 2021 Assessment 1: Individual Assignment Page 6 of 9 Non Adherence to Referencing Guidelines Where students do not follow the above guidelines: 1. Students who submit assignments which do not comply with the guidelines will be asked to resubmit their assignments. 2. Late penalties will apply, as per the Student Handbook each day, after the student/s have been notified of the resubmission requirements. 3. Students who comply with guidelines and the citations are “fake” will be reported for academic misconduct. Marking Criteria Marking criteria Weighting in Total Grades Discuss the given statement in the light of existing revenue cycle of RCE Limited. 4% The potential internal control weaknesses in the SOPP and CRP of RCE Limited. 4% The potential risks associated with the internal control weaknesses in the SOPP and CRP of RCE Limited. 4% The potential frauds in the SOPP and CRP of RCE Limited. 4% Presentation and Referencing. 4% TOTAL Weight 20%HI5019 T1 2021 Assessment 1: Individual Assignment Page 7 of 9 Marking Rubric Excellent Very Good Good Satisfactory Unsatisfactory (80-100%) (70-79%) (60-69%) (50-59%) (0-49%) Discuss the given statement in the light of existing revenue cycle of RCE Limited. [4 Marks] Present an excellent discussion on the the given statement in the light of existing revenue cycle of RCE Limited. Present a very good discussion on the the given statement in the light of existing revenue cycle of RCE Limited. Present a good discussion on the the given statement in the light of existing revenue cycle of RCE Limited. Present a reasonable discussion on the the given statement in the light of existing revenue cycle of RCE Limited. Present a weak or inadequate discussion on the the given statement in the light of existing revenue cycle of RCE Limited. The potential internal control weaknesses in the SOPP and CRP of RCE Limited. [4 Marks] Correctly identify all the potential internal control weaknesses in the SOPP and CRP of RCE Limited. Correctly identify most of the potential internal control weaknesses in the SOPP and CRP of RCE Limited. Correctly identify some of the potential internal control weaknesses in the SOPP and CRP of RCE Limited. Correctly identify one to two potential internal control weaknesses in the SOPP and CRP of RCE Limited. Fail to identify the potential internal control weaknesses in the SOPP and CRP of RCE Limited. The potential risks associated with the internal control weaknesses in the SOPP and CRP of RCE Limited. [4 Marks] Correctly identify all the potential risks associated with the internal control weaknesses in the SOPP and CRP of RCE Limited. Correctly identify most of the potential risks associated with the internal control weaknesses in the SOPP and CRP of RCE Limited. Correctly identify some of the potential risks associated with the internal control weaknesses in the SOPP and CRP of RCE Limited. Correctly identify one to two potential risks associated with the internal control weaknesses in the SOPP and CRP of RCE Limited. Fail to identify the potential risks associated with the internal control weaknesses in the SOPP and CRP of RCE Limited. The frauds possible in the SOPP and CRP of RCE Limited. [4 Marks] Correctly identify all the frauds possible in the SOPP and CRP of RCE Limited. Correctly identify most of the frauds possible in the SOPP and CRP of RCE Limited. Correctly identify some of the frauds possible in the SOPP and CRP of RCE Limited. Correctly identify one to two frauds possible in the SOPP and CRP of RCE Limited. Fail to identify the frauds possible in the SOPP and CRP of RCE Limited. Presentation and Referencing. [4 Marks] An extensive amount of high-quality evidence from peerreviewed journal articles and other A broad range of quality peer-reviewed journal references and other sources was included and used An adequate range of peer-reviewed journal references was included and used to support discussion. An adequate range of peer-reviewed journal references was included and used to a Little or no peerreviewed journal references were included, and these were rarely used to HI5019 T1 2021 Assessment 1: Individual Assignment Page 8 of 9 sources was included and used effectively to support discussion. effectively to support discussion. basic extent to support discussion. support discussion effectively.HI5019 T1 2021 Assessment 1: Individual Assignment Page 9 of 9 Academic Integrity Holmes Institute is committed to ensuring and upholding Academic Integrity, as Academic Integrity is integral to maintaining academic quality and the reputation of Holmes’ graduates. Accordingly, all assessment tasks need to comply with academic integrity guidelines. Table 1 identifies the six categories of Academic Integrity breaches. If you have any questions about Academic Integrity issues related to your assessment tasks, please consult your lecturer or tutor for relevant referencing guidelines and support resources. Many of these resources can also be found through the Study Sills link on Blackboard. Academic Integrity breaches are a serious offence punishable by penalties that may range from deduction of marks, failure of the assessment task or unit involved, suspension of course enrolment, or cancellation of course enrolment. Table 1: Six categories of Academic Integrity breaches Plagiarism Reproducing the work of someone else without attribution. When a student submits their own work on multiple occasions this is known as self-plagiarism. Collusion Working with one or more other individuals to complete an assignment, in a way that is not authorised. Copying Reproducing and submitting the work of another student, with or without their knowledge. If a student fails to take reasonable precautions to prevent their own original work from being copied, this may also be considered an offence. Impersonation Falsely presenting oneself, or engaging someone else to present as oneself, in an in-person examination. Contract cheating Contracting a third party to complete an assessment task, generally in exchange for money or other manner of payment. Data fabrication and falsification Manipulating or inventing data with the intent of supporting false conclusions, including manipulating images. Source: INQAAHE, 2020