C6 - Evaluation & Review Of An Accounting System Flashcards
1
Q
What does it mean to analyse something?
A
It requires you to break the topic down into fundamental parts and examine each one using evidence (pros and cons).
2
Q
What does it mean to explain something?
A
Providing a detailed account of why and how something occurs, providing key terms if needed and their uses.
3
Q
SWOT analysis:
A
Strengths
Weaknesses
Opportunities
Threats
4
Q
Identifying strengths of the system
A
- policies in place?
- authorisation system for clear and secure payments
- cost effective system
- organised records
- routine checks in place
5
Q
Identifying weaknesses in the system?
A
- invoices being sent to wrong customers
- employees being paid incorrectly
- passwords not being used
- late supplier payments
- incorrect discount
6
Q
What happened if a company doesn’t update or review any procedures?
A
The company will eventually become very inefficient, expensive to run and delay production of information.
