C6 - Evaluation & Review Of An Accounting System

Question 1

What does it mean to analyse something?

Answer 1

It requires you to break the topic down into fundamental parts and examine each one using evidence (pros and cons).

Question 2

What does it mean to explain something?

Answer 2

Providing a detailed account of why and how something occurs, providing key terms if needed and their uses.

Question 3

SWOT analysis:

Answer 3

Strengths
Weaknesses
Opportunities
Threats

Question 4

Identifying strengths of the system

Answer 4

• policies in place?
• authorisation system for clear and secure payments
• cost effective system
• organised records
• routine checks in place

Question 5

Identifying weaknesses in the system?

Answer 5

• invoices being sent to wrong customers
• employees being paid incorrectly
• passwords not being used
• late supplier payments
• incorrect discount

Question 6

What happened if a company doesn’t update or review any procedures?

Answer 6

The company will eventually become very inefficient, expensive to run and delay production of information.