ACCT422 Accounting Information System. ACCT422 Accounting Information System.
Khan Corporation is a midsize, privately owned, industrial instrument manufacturer supplying precision equipment to manufacturers in the Midwest. The corporation is 10 years old and uses an integrated ERP system. The administrative offices are located in a downtown building and the production, shipping, and receiving departments are housed in a renovated warehouse a few blocks away. Customers place orders on the company’s website, by fax, or by telephone. All sales are on credit, FOB destination. During the past year sales have increased dramatically, but 15% of credit sales have had to written off as uncollectible, including several large online orders to first-time customers who denied ordering or receiving the merchandise. Customer orders are picked and sent to the warehouse, where they are placed near the loading dock in alphabetical sequence by customer name. The loading dock is used both for outgoing shipments to customers and to receive incoming deliveries. There are ten to twenty incoming deliveries every day, from a variety of sources.
The increased volume of sales has resulted in a number of errors in which customers were sent the wrong items. There have also been some delays in shipping because items that supposedly were in stock could not be found in the warehouse. Although a perpetual inventory is maintained, there has not been a physical count of inventory for two years. When an item is missing, the warehouse staff writes the information down in log book. Once a week, the warehouse staff uses the log book to update the inventory records. The system is configured to prepare the sales invoice only after shipping employees enter the actual quantities sent to a customer, thereby ensuring that customers are billed only for items actually sent and not for anything on back order.
a. Identify at least three weaknesses in Khan Corporation’s revenue cycle activities. [2 points]
b. Describe the problem resulting from each weakness. [2 point]
c. Recommend control procedures that should be added to the system to correct the weakness. [2 point]
Question 2: (2 Marks)
What are the advantages of the REA data model over the traditional AIS model?
Question 3: (02 Marks)
Identify and discuss two methods of production planning.
The Assignment must be submitted on (WORD format only) via allocated folder.
are advised to make their work clear and well presented, marks may be reduced
for poor presentation. This includes filling your information on the cover
must mention question number clearly in their answer.
must be typed using Times New Roman (size 12, double-spaced) font. No
pictures containing text will be accepted and will be considered plagiarism.
ACCT422 Accounting Information System Accounting Assignment Help Q1. Why bank reconciliation is important to the audit? Your answer should explain in detail what types of bank reconciliation uses the auditor should consider when auditing cash, and you should also list some of the items found on the reconciliation (2 Marks).
Q2. Define the term “contingent liability” and discuss the criteria used to classify these events or conditions. Provide some examples of contingent liabilities (1Marks).
Q3. The following four situations require a modification to the standard unqualified/unmodified audit report. Identify the modification required for each. (2 Marks). All answers must be typed using Times New Roman (size 12, double-spaced) font.a. Opinion based in part on the report of another auditor.b. Going concern.c. Lack of consistency.d. Additional emphasis.
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Acct424 Insurance accounting
Q1. The following financial transactions are related with a General Takaful Product:
i. An amount of SAR 6,200 received as advanced contribution from new participants.
ii. An amount of SAR 4,500 received as a contribution from new participants.
iii. Contribution renewal received from participants SAR 5,500.
You are required to prepare necessary journal entries. (1.5 Marks)
Q2. Discuss the three primary methods used by Guaranty Fund to assess property and liability insurance using your own words. (2 Marks)
Q3. XYZ Company has the following financial data: (1.5 marks)
Total Profit for the Year
General Takaful Assets (Year 2014)
General Takaful Assets (Year 2015)
Short term liabilities
Underwriting Surplus Distributable to Participants/Participants’ Share of Profit
Net Claim Incurred
You are required to calculate:
a)Return on Assets
c)Surplus Distribution Ratio
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