Chapter 8

Question 1

Checklist for resolving an accounting system weakness

Answer 1

1. Set out process or procedures to implement (detailed and concise and easy to understand for those it is applicable)
2. Explain the reasons for the change. Outline the benefits. Justify it.

Question 2

Checklist for resolving outdated accounting systems

Answer 2

1. Make recommendations for improvement
2. Justify those recommendations
3. Consider any problems that might arise in the transitional period

Question 3

two areas to measure cost-benefit analysis

Answer 3

1. Financial (employee time saved, costs saved, time saved)
2. Non-financial (improved service, better staff morale, better management information

Question 4

what are the three sustainable practices you should consider when making any recommendation?

Answer 4

1. Corporate Issues - long-term profit
2. Environmental Issues - impact on environment (paperless system, less plastic, etc.)
3. Social Issues - welfare of stakeholders, employees, community

Question 5

Different techniques of implementing change in an accounting system

Answer 5

1. Direct changeover (off one day, on the next)
2. Parallel changing (run both systems until confident)
3. Test databases (use old data in new system to see if it reaches same result)
4. Phased implementation (change different areas gradually)