Accounting Systems Project 2

Multipart Assignment; Please see word Document.

Part 1
BeGood Baking Supply is a small bakery supply company formed as a closely held
corporation. The company supplies raw baking materials, paper goods, and equipment to
restaurants and bakeries in 3 states in the upper mid-west. Most of its business however,
is located in a large metropolitan area. BeGood wants to increase its presence in the
region and serve 5 states. In fact, the owners of BeGood would like 75% of their business
to come from throughout the region rather than the current metropolitan area. In order to
do this the owners understand they must diversify offerings and lines of business.
Currently, BeGood has a phone center where customer orders are taken; these orders are
then sent to shipping where the order is filled in its large warehouse and shipped within 4
days. Be Good outsources its shipping to a local trucking company. Once the order ships,
all paperwork goes to the accounting department where it is entered into the accounting
system. BeGood still uses the same accounting system it has used since the inception of
the company. All aging of receivables and other analysis is done using Excel
spreadsheets. Purchasing and tracking of inventory are done solely by the warehouse
manager. Invoices for inventory purchasing are sent to the accounting department when
goods are received.
The owners at Be Good are wondering how they can utilize an online presence and
further automate its systems in order to facilitate its growth and diversify its business.
The owners may also like to expand into the retail business.
You have been hired as a full-time staff accountant at BeGood Baking Supply and have
been given the task of evaluating and recommending a viable accounting information
system for the accounting and financial data of BeGood in order to facilitate expansion
and diversification. As you begin your research, you realize that many departments are
involved in the information system, and communication is key.
You are ready to address the specifics of the new AIS at BeGood. As part of your
research, document the following, which would become part of your final presentation to
management, if you were carrying the project through to the end. Your documentation
can be in the form of tables, SmartArt, PowerPoint, Word, or Excel. Use what best works
for the documentation you are creating:
1. Identify the tables that you would need to create a working database for the
company’s receivables, payables, and inventory.
2. Create relationships for your various tables and databases. For instance, how does
the A/P database interface with the Inventory Database?
3. Document your work providing a databases diagram (schema).
4. Documenting an organization’s AIS would become part of a larger scale user
manual for the accounting and information technology teams to use for reference
and to assist the audit team with understanding how the organization’s systems
work together. Write the appropriate policies and procedures that arise from the
tasks above that would be included in this type of user manual. Your information
should also address the security of the systems involved.
Part 2
As part of the BeGood AIS assessment, you must address risks, threats, and controls in
compliance with the COSO framework. You know the external auditor will also want this
information, so you decide to document it now. In preparation for the company external
audit, you prepare the following documentation to assist the audit team in starting their
work:
1. Document a new AIS with a flowchart that will address the size and scope of
BeGood in its current form.
2. List at least three vulnerabilities and appropriate control measures to manage the
vulnerabilities for each function (department) within the flowchart.
3. Devise controls based on threats in a general ledger reporting system.
4. Evaluate at least one security policy or procedure that would minimize threats and
risks.
Part 3
After attending the board of director’s meeting, you learn the company is considering
expanding into Canada and becoming a multinational corporation. In a memo to the
board chair, discuss how multinational corporations have to set up an AIS with their
foreign subsidiaries to provide the accounting information needed to plan, control,
evaluate, and coordinate all business activities including government regulations and
political climates. Also, summarize the issues that must be addressed regarding the
company going multinational, and how that impacts the AIS for the company.