Please see the file that have attached Essay Example

  1. Corporate governance is the principle by which the board is expected to effectively oversee and direct the activities of the company. It is an internal system that integrates the processes, policies, and people, as well as meeting the needs of shareholders and other stakeholders.

  2. The two Australian professional bodies that established the Australian Accounting Research foundation are the Certified Practicing Accountants (CPA) Australia, and the Institute of Chartered Accountants in Australia (ICAA).

  3. The roles of audit committees include:

  • Reviewing the reports presented by the auditors.

  • Reviewing the proposed improvements to the internal control systems.

  • Understanding how the internal control objectives are accomplished

  1. Section 286 of the Corporations Act requires a company to keep written financial records that:

  1. Can accurately record and give explanation to its dealings and financial status and performance.

  2. Would allow for preparation and auditing of financial statements that gives a true and fair presentation.

  1. The corporation Act also permits companies to send concise financial reports to shareholders rather than complete annual report.

  2. The offence based on failure to meet the above two is considered as an offence of strict liability.

  3. The records should be maintained for at least 7 years beginning from the time of completion of the transactions recorded.

  1. Contingency planning is a systematic approach that involves the anticipation of a risk and the adoption of prevention policies and procedures to control that risk. A contingency plan suggests the mitigation activities that must be done when the risk has exceeded the limit and has become a problem. Contingencies are normally anticipated and then a plan is initiated to deal with the contingency.

  1. Pilot running — The implementation of a new system in one branch of an organization while the rest of the organization continues with the old system

  2. Data integrity — Data which are accurate, reliable and not exposed to improper changes

  3. Coding — The process of turning program logic into specific instructions that can be executed by a computer system

  4. Parallel running — Running an old system and new system concurrently

  1. Post-implementation review involves an examination of a working information system, conducted soon after that system’s implementation. It helps to establish whether user’s requirements are satisfied, as well as whether the efforts for development were efficient. Also to determine whether the development was conducted in accordance with the organization’s systems development standards.

  1. Purpose of Post-implementation review

  • Evaluate the quality of the new system’s documentation, training programs and data conversions.

  • Ascertain that the organization’s system development life cycle was followed during the development

  • Compare actual costs with budgeted project costs and ascertain whether planned benefits have been achieved.

  • Recommend improvements to the systems development

  1. Explain the term ‘completeness of data input’

This involves counting the number of transaction input and comparing it with the number of transactions intended to be inputted. This will help in determining the discrepancies. Completeness of data input can also be achieved through numbering the data sources in advance and then matching these numbers with those received from the computer during the input process. Every organization should have an appropriate verification and check systems to prevent any document or transaction from being unprocessed.ensure completeness of the data input, a transaction count is done.Completeness of data input is concerned with the actual number of events or objects to be processed. In order to

  1. The common causes of data loss or corruption are:

  • Corruption in the software

  • When the external hard drives as well as other storage dices are not removed first before turning off the system.

  • Hardware problems

  • Bad programming

  • Power related problems for example power failure or lightning strike

  1. Actions to promote maintenance of quality and reliability of reports.

  • Ensuring that there are explanatory notes as well as financial results to be used as supporting documents for reports presented.

  • Setting up relevant requirements necessary for reporting and analyzing them regularly to identify any deviations.

  • Constantly verifying the sources of input data and records documented in order to ensure accuracy and reliability.

  • Ensuring that the reporting requirements comply with the established policies for proper recording and classification of the transactions of the organization.

1. An internal review of procedures is also known as:

A Monitoring and reviewing input

B Monitoring the output

C System appraisal

D Monitoring the input

2. Answer True or False to the following statement

(True)Ensuring the completeness and accuracy of data input will maintain the quality and reliability of reports

3. Answer True or False to the following statement

(False)The process of producing software programs for a system is called encryption

4. The term used to describe the training where trainees are allowed to work at their own pace to train themselves is called

A Self Training

B Self – Paced Learning

C Both of the above

5. True or False

(True)Documentation takes place at every stage of the system development process

? What are three supporting information requirements necessary when preparing reports for senior management and external partiesa)

  • Ensuring that the staffs have adequate knowledge on the recording process and classification of resources.

  • Confirmation of completeness and accuracy of the data input, and ensuring that the reports relate to the suitable accounting period.

  • Standardizing the source documents using structured formats so as to minimize human error.

.Give a specific business related example of each requirement to demonstrate your understanding of the supporting information requirementsb)

  • Every organization must train its staffs in their relevant department for example the accounting department. They should know how to prepare accounting information to be presented to the senior management and external parties.

  • To maintain complete, accurate and reliable information, the organization needs to have a strong internal control system.

  • To minimize human error, the organization can use computer systems to key input data and process it. This will minimize errors and improve the quality of information received by the senior management and external parties.

Supporting documents include:

  • Explanatory notes clearly showing the details on the numbers and conclusions appearing on the report.

  • The financial results which act as the source document from where the report was extracted.

  • Specific reports prepared and written by individual managers.

Tick the correct answer.

(i) What are auditing standards?

(a) An auditor evaluates the evidence and forms a judgment

(b) From the standards created from an audit report

(c) provides the framework within which the auditor undertakes the audit engagement

(d) Auditors have the attributes of integrity, objectivity and independence.

(ii) Which type of auditor renders professional auditing services to clients on a fee-for-service basis?

(a) Independent auditor

(b) Government auditor

(c) Internal auditor

(d) All of the above

?What are the three methods of maintaining system operations(iii)

(a) Adaptive maintenance, accounting standards and taxation law

(b) Adaptive maintenance, processing systems and computer system analysis

(c) Modification, correction and improvement

(d) Corrective maintenance, improvement maintenance and adaptive maintenance

(iv) Which method of system implementation best describes when the new system is only live in the accounts payable section of the organization so the systems analysts can make changes before it is released into all systems in the organization?

(a) Parallel running

(b) Total implementation

(c) Pilot running

(d) Direct changeover

?What actions may be included in the process of maintaining the quality and reliability of reports(v)

(a) Checking the AASB standards applicable to the reporting requirements of the organization

(b) Employing an experienced Financial Accountant

(c) Monitoring the Accounting Information System for discrepancies in input methods

(d) All of the above