Accounting Info Systems Project

Three part project in word document attached. Thank you so much for your help this is my second time taking this class 🙁

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 three 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 five 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.
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
four days. BeGood 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.
The owners at BeGood are wondering how they can utilize an online presence and further
automate its systems in order to facilitate its growth. The owners would 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.
As you begin your research, you realize that many departments are involved in the
information system, and communication is key.
1. Your task is to write a memo to management on the value of an AIS and how
it will impact the business processes at BeGood facilitating its growth.
Part 2
BeGood has grown over the years but the AIS has not kept up with that growth, and you
believe there may be some internal control issues. Since cost of goods sold is the largest
expense of the company, you decide to take a look at inventory control, ordering and
receiving first. You have an “uneasy feeling” about the warehouse supervisor, Harold.
The Receiving department consists of three employees, including Harold. The two
receiving employees unload vendor trucks and stock the goods received. If goods are
shorted on an order or defective goods are received, it is brought to light when filling
customer orders or when customers complain about product received. After receiving,
employees unload trucks and restock goods. The vendor invoice is held in a folder on
Harold’s desk. Once per week, Harold takes the invoices to accounting for payment.
1. A system flowchart of the ordering and receiving process described above
2. A chart listing the control weaknesses in the current system, along with the fraud
that could occur with the weakness, and a solution to the weakness
3. A system flowchart of a new recommended system addressing each of the control
weaknesses identified in the chart
Part 3
BeGood Baking Supply is considering adding an automated ordering module to their
current AIS system. As the accountant pushing for this change, you are in charge of the
analysis and presentation of the information and recommendation for the new system. In
performing the analysis for your presentation, you have identified two possible modules
that will fill the needs of the company. Both modules return a positive NPV.
Module Vendor
Useful Life
A – 5 years B – 5 years
Acquisition Cost
A – 300,000 B – 250,000
Yearly Operating Costs
A – 95,000 B – 100,000
Yearly Benefits
A – 205,000 B – 150,000
Cost of Capital
A – 10% B – 10%
Payback
A – 1.5 years B – 2.5 years
Present to management a proposal outlining your analysis and recommendation of which
system to purchase. Write a proposal to management outlining the decision-making
process and the system you recommend. Include in your proposal:
1. The steps necessary in evaluating and recommending an AIS module. Note: these
are the steps you would take to educate yourself on the need for a new model, the
options available, and the choice of the best module.
2. List of needs BeGood has with respect to this automated ordering module. Include
present needs as well growth needs
3. List of criteria you used in choosing a module. Include financial criteria,
expansion and growth criteria, and current needs. Be sure to address internal
control and audit needs.