Deliverable 7 – Evaluating and AIS

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Deliverable 7 – Evaluating and AIS
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Competencies

  1. Value the importance of information technology to accountants.
  2. Assess accounting information systems.
  3. Design the steps to justify an information system initiative.
  4. Synthesize appropriate and effective use of technology for managing accounting and financial information flows and presentation.
  5. Evaluate the threats and risks associated with accounting information systems.
  6. Explore special topics in accounting information systems to include the impact of globalization and a multinational business presence.

Scenario Information

Your company, Swift Athletics is a publicly held, mid-sized manufacturer, with $20 million dollars in annual revenue. You produce high-end running shoes exclusively in the US. You are planning to sell your products internationally within the next two years. You operate in a lean environment, and your supplier monitors your raw materials needs, and shipments are made JIT.

Assume that you are the Chief Accounting Officer (CAO) for the company. The company is publicly held; therefore, it must follow all reporting requirements of the Securities and Exchange Commission (SEC).

The company is expanding rapidly and has outgrown its information system. You have been given the task of evaluating and recommending a viable accounting information system solution for the accounting and financial data. Your final proposal will be delivered to the Chief Executive Officer (CEO) and Chief Information Officer (CIO). You must be able to support your proposal with appropriate research.

Instructions

To complete this project:

  1. Articulate the value of an AIS and how it can be used to facilitate growth at Swift. Identify the departments/functions of a manufacturer like Swift that will utilize the AIS, and how the departments will interact.
  1. Prepare a summary that identifies the departments listed above, a weakness or threat for each department, explanation of why the weakness exists, and the steps that you will implement in your new system to address the weakness issues. Note: An example of a weakness or threat in the general ledger and reporting system might be an unauthorized disclosure of financial statements. Controls to respond to this weakness or threat include access controls and encryption. You may wish to present this information in a table for your presentation.
  1. While the balanced scorecard is not a new concept, it does offer a framework allowing managers to measure an enterprise’s performance from four categories: financial, customer, business processes, and learning and growth. The balanced scorecard considers both financial and nonfinancial measures. After researching the balanced scorecard, for each of the four categories, identify at least one critical success factor for Swift to achieve shareholder value.
  1. As part of the planning process for your new accounting information system, you need to prepare flowcharts. This graphic will present the flow of information through the accounting cycles. Prepare flowcharts for at least two business departments/functions for Swift. Each flowchart should be detailed, and have the right symbols for each process. Also, think your way through the processes from beginning to end. For example, how is sales revenue defined, such as when is it considered earned? The following are the business processes that you may elect to address:
    • Sales
    • Purchasing
    • Production
    • Payroll

    Please note that you will have two distinct flowcharts for this assignment. Be sure your flowcharts are professionally presented and clearly labeled.

  1. What are the steps you will take to justify the new information system initiative? What must be considered for Swift? How will you assess the financial implications? What is the impact on the AIS of globalization and a multinational business presence?
  1. How will appropriate and effective use of technology for managing the accounting and financial information flows and presentation be affected?
  1. Evaluate the threats and risks associated with the accounting information system for Swift.

Prepare a PowerPoint presentation along with an executive summary to be delivered to the CEO and CIO which includes the information in 1-7 above. Be creative in your slides by incorporating charts, graphs, and/or artwork. Your PowerPoint presentation should begin with an introduction as to why the project is being considered, and conclude with the value of the project. Incorporate slide notes where needed. Include an APA formatted reference slide and in-text citing where appropriate.

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