Tute08AnswersGuide

pdf

School

The University of Adelaide *

*We aren’t endorsed by this school

Course

2503

Subject

Accounting

Date

Apr 3, 2024

Type

pdf

Pages

Uploaded by MateChimpanzee4140

University of Adelaide Adelaide Business School ACCOUNTING SYSTEMS and DATA ANALYTICS Tutorial 8 Answers Guide BEFORE TUTORIAL 8 1 Read the material indicated below and attempt answers to the questions that follow. Material to read: MyUni> Data Analytics – Microsoft Power BI Material> Topic 7 – From dimensional model to stunning report in Power BI Desktop. pdf Key aims of Topic 7 are to strengthen understanding of importing data from multiple MS Excel sheets; table relationships; data preparation including creating field hierarchies, hiding columns, renaming of tables; creating calculated measures using DAX; creating advanced interactive report using conditional formatting and slicers. Students are expected to learn basic hands-on skills to carry out these tasks. Students are expected to attempt tasks in this document before the tute. However, the tutor will also demonstrate these tasks during the tutorial. 2 Prepare the answers to the following questions from the recommended textbook (Romney et al, 2021, Accounting Information Systems, 15 th Ed): • Problem 22.2 p. 742 • Problem 24.3 pp. 802-804 • Optional questions – to discuss if time permits in allocated tutorial session o Discussion Questions 22.8 and 22.9 p. 740 DURING TUTORIAL 8 1 Discuss outstanding questions and issues from past tute. 2 Your tutor will demonstrate how to carry out the tasks outlined in MyUni> Data Analytics – Microsoft Power BI Material> Topic 7 – From dimensional model to stunning report in Power BI Desktop.pdf 3 Contribute to the class discussion of the questions from the textbook. Please remember that to earn participation marks you need to ACTIVELY PARTICIPATE in the discussions. 4 Use time left (if any) to address outstanding issues and/or seek clarifications from your tutor.

Page 2 of 8 AFTER TUTORIAL 8 . Reflect on questions (and answers) discussed in the tute and seek help from your tutor and/or lecturer-in-charge if you need clarification and help. • Problem 22.2 p. 742 22.2 Mary Smith is the bookkeeper for Dave ’ s Distributing Company, a distributor of soft drinks and juices. Because the company is rather small, Mary performs all daily accounting tasks herself. Dave, the owner of the company, supervises the warehouse/delivery and front office staff, but he also spends much of his time jogging and skiing. For several years, profits were good, and sales grew faster than industry averages. Although the accounting system was working well, bottlers were pressuring Dave to computerize. With a little guidance from a CPA friend and with no mention to Mary, Dave bought a new computer system and some accounting software. Only one day was required to set up the hardware, install the software, and convert the files. The morning the vendor installed the computer system, Mary ’ s job performance changed dramatically. Although the software company provided two full days of training, Mary resisted learning the new system. As a result, Dave decided she should run both the manual and computer systems for a month to verify the new system ’ s accuracy. Mary continually complained that she lacked the time and expertise to update both systems by herself. She also complained that she did not understand how to use the new computer system. To keep accounts up to date, Dave spent two to three hours a day running the new system himself. Dave found that much of the time spent running the system was devoted to identifying discrepancies between the computer and manual results. When the error was located, it was usually in the manual system. This significantly increased Dave ’ s confidence in the new system. At the end of the month, Dave was ready to scrap the manual system, but Mary said she was not ready. Dave went back to skiing and jogging, and Mary went on with the manual system. When the computer system fell behind, Dave again spent time catching it up. He also worked with Mary to try to help her understand how to operate the computer system. Months later, Dave was very frustrated because he was still keeping the computer system up to date and training Mary. He commented, “ I ’ m sure Mary knows how to use the system, but she doesn ’ t seem to want to. I can do all the accounting work on the computer in two or three hours a day, but she can ’ t even do it in her normal eight-hour workday. What should I do? ” This is an actual case with the facts presented as accurately as possible. The objective is to familiarize students with the behavioral issues surrounding a systems change. It is less important to determine the “ right answer ” (there may not be one) that it is to discuss the issues. a. What do you believe is the real cause of Mary ’ s resistance to computers? Employee reaction to the installation of a new information system is often diverse and unpredictable. In many cases, employees must make significant behavioral adjustments to ensure the future success of the new system. These adjustments go well beyond mere surface anxieties such as fear of the unknown. Possible causes of Mary ’ s resistance to computers include (phased as questions) : • Is Mary ’ s adverse behavior due to a perceived need to protect her ego? Is she afraid she cannot use the computer properly and would look foolish? • Since Mary was excluded from the decision to automate the office, does she feel resentment and refuse to use a system she wasn ’ t asked to help select?

Page 3 of 8 • Is she fearful because computers sometimes cause people to overcommunicate? (i.e., with capabilities such as electronic mail, employees can be reached anywhere and anytime, making it difficult to get away from all the interruptions that are part of the daily grind.) • Is she worried that the computer will impose its own structure on the organization? The computer can considerably narrow that freedom causing people to view the computer as structure and constraint. • Did she have an adverse experience with previous changes to her work environment and as a result is suspicious of any new system? b. What events may have contributed to the new system ’ s failure? • The company did not involve Mary in the systems change. They did not ask for her ideas, thoughts, or input. Evidently, she was not informed of the change until the computer was moved into her office and the furniture rearranged to make room for it. It would be easy for her to get the feeling she was not a very valued employee of the company. • The company did not explain why the system was being implemented, what the company hoped to achieve with the system, and why it was so important to the company. • The changes to Mary ’ s job and responsibilities were not explained. • Mary was not given any assurance that she would not be replaced by the system. • The company did not alleviate Mary ’ s fear by reassuring her that training would be provided to help her adapt to the new system and her duties. • Running two systems longer than it took to test system reliability was a mistake, as was having Dave do the work. c. In retrospect, how should Dave have handled the accounting system computerization? • Mary should have been informed of the change that was going to take place, the purpose of the change, and why it was important to the company. Discussing these things with Mary beforehand could have helped the company create an attitude of trust and cooperation and could have set an example for what they expected of Mary. • The company should have allowed Mary to make suggestions concerning the system, especially the things that would help her do her job more efficiently. • Mary should be reassured that she has control over the system and not the other way around and that the system will help her perform her job more effectively. • Education prior to systems implementation could perhaps have helped Mary adapt to the system more readily. d. At what point in the decision-making process should Mary have been informed? Should she have had some say in whether the computer was purchased? If so, what should have been the nature of her input? If Mary had not agreed with Dave ’ s decision to acquire the computer, what should Dave have done? • Mary should have at least been informed as soon as the decision was made to purchase the system. Preferably, Mary should have been informed at the very start when the company began thinking about the computer system. This would have allowed Mary to give valuable input and to be involved throughout the entire process. • Because Mary was only a bookkeeper and did not fully understand the necessity of the system, she should not have been allowed to make the final

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

Page 4 of 8 decision on acquiring the system. However, if Mary had been involved from the beginning it is possible that she would have been in favor of the system. Even though she should not make the final decision, if her input had been considered it would have helped her accept the decision better. • An effort should have been made to persuade her of the system ’ s viability. If that is unsuccessful then consideration should be given to relocating her within the company. If both previous plans fail then termination is the only alternative available. • Mary should have been given an opportunity for greater input. The company should have solicited her suggestions concerning how the system would best assist her with her job and how the system could achieve success in general terms. This participation would have likely increased Mary ’ s self-esteem and security with the new system and changed her whole outlook about the system. e. A hard decision must be made about Mary. Significant efforts have been made to train her, but they have been unsuccessful. What would you recommend at this point? Should she be fired? Threatened with the loss of her job? Moved somewhere else in the business? Given additional training? There are advantages and disadvantages to each of the following four options. Students will come to different conclusions based on their background. It is important to bring out the pros and cons of each approach. A few of these are shown below. This problem works well when the instructor determines which students support which alternative and plays them off against each other. 1. Firing can have the following advantages: • The company can hire a more qualified individual who can perform the job more efficiently. • The company can rid itself of an uncooperative employee and replace her with someone with a more positive attitude. Firing can have the following disadvantages: • The company sends messages to other employees and perhaps the community in general that they don ’ t care about their employees as much as they do about profits and operations. This may lower company morale. • The firm may have higher training and hiring costs. • The person hired may cost more and bring unknown problems to the job. 2. Transferring employees can have the following advantages: • The company is less likely to communicate that it does not care for its employees. • The transferred person has experience with the company and may be of greater value to the company in another area than a newly hired person may. • Training and hiring costs remain constant. Transferring can have the following disadvantages: • Employees may resent being transferred and not perform well in their new duties. • Employees may not be qualified for the new job and perform poorly. • If the transferred employee is disgruntled and talks about her situation to her coworkers, it could affect company morale.

Page 5 of 8 3. Persuasion can have the following advantages: • A valuable employee may be retained, and her time freed up to perform tasks that are more important. • Hiring and training costs can be kept to a minimum. • The company communicates consideration for its employees. Persuasion can have the following disadvantages: • The employee may never truly adapt, resulting in poor job performance and an increase in errors. • Significant costs may be incurred to constantly train the employee and identify the mistakes made by the employee. • The company may make poor decisions based on incorrect information given by the employee. • It may only serve to increase even further the frustration level that already exists. Mary was eventually fired and another bookkeeper hired. With the new system, there was not enough work to keep the new employee busy full time. Consequently, the employee took over additional tasks that Dave had originally been performing. This freed him up for more creative tasks and to have more personal time. Mary was interviewed several years later. She was employed at another firm and worked extensively with computers. Mary was asked if the company could have done anything to help her adapt to the computer and she said no. She had such a mental block against the computer at the time that she doubted the company could have done anything else to help her. It required several years for her to overcome her fear and learn to use computers. • Problem 24.3 pp. 802-804 24.3 Tiny Toddlers, a manufacturer of children’s toys and furniture, is designing and implementing a distributed system to assist its sales force. Each of the 10 sales offices in Canada and 20 in the United States maintains its own customers and is responsible for granting credit and collecting receivables. Electronic data input forms used by each sales office to maintain the customer master file and to enter the daily sales orders are shown in Figures 24-4 and 24-5. Evaluate the electronic data input forms shown in Figures 24-4 and 24-5 using the following format: Weakness Explanation Recommendation(s) Customer Maintenance Form Weakness Explanation Recommendation(s) No fields for recording a new customer’s phone number, email address, or website. Tiny Toddlers cannot call or email the customer or visit their website without this data. The form should have fields for this information after the address information.

Page 6 of 8 Weakness Explanation Recommendation(s) The form is not pre- numbered. There is no way to ensure that all maintenance forms are processed and accounted for. The form should have a preprinted number in the upper right or left corner. No indication that information has been entered into the computer system. The person entering the data does not initial the form after the data is entered into the system. A form may be missed or entered twice. The report should have a space to record the initials of the person entering the data and the date it is entered. There is no space provided for recording date the form is created (or the effective date of the change). The company would not know the effective date of the change nor when the form was created. An effective change date should be added to this report. If the effective change date can be different from the date the form is created, a field for that date should also be included. The form does not have a place where the person who fills out the form can sign or initial. If the data entry clerk could not read or understand the information on the form, she would not know who filled out the form. A place should be provided for the person who fills out the form to sign or initial it.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

Page 7 of 8 24.3 (continued) Sales Order Form Weakness Explanation Recommendation(s) There is no indication that the customer approves of the order. Where possible, all orders should be signed by the customer to ensure that the customer is responsible for requesting the order. Provision should be provided on the form for the customer's order approval. The form is not pre- numbered. There is no way to ensure that all sales orders are processed and accounted for. The form should have a preprinted number in the upper right corner. There is no space to enter a ship to address or shipping instructions The goods cannot be shipped to a different address than the customer’s office address, as there is no ship to address. Nor is there any want to know a customer’s special shipping instructions. Add a ship to address to the sales order form as well as a space to record special shipping instructions. There is no space for the customer’s purchase order number There is no way for the company to reference back to purchase order from the customer Add as space on the form for the customer purchase order number There is no room for the unit price or extended amounts on the sales order form There is no way to know if the customer was given a special price, a sale price, or a standard price. Include columns for Unit Price and Extended Amount. Some students may refer to the sales order form shown in the Revenue Cycle chapter.

Page 8 of 8 • Optional questions – to discuss if time permits in allocated tutorial session o Discussion Questions 22.8 and 22.9 p. 740 22.8 Discuss the strategies often used to determine requirements for a proposed AIS. Ask users: the simplest way to start off with is to ask users what they need. However, often users do not understand what they need as they just know what they have to do every day. Often, users do not have the ability to break down their daily tasks into the individual information elements they need to use. When speaking to users, it is often more appropriate to ask some questions, such as: what decisions do you make, what processes are you involved in? It is also good practice to get the users to think beyond what they are currently using and doing in order to also identify possible future needs. Analyze existing external systems: it is possible that there are existing systems that could potentially meet the needs of the company – then it is not necessary to redevelop something that already exists. Study existing systems: Sometimes certain parts of an existing system at a company are not used as intended – in some cases certain parts of a system is not used at all. It might be that the current system in place might just need some modifications, or it might indicate that the existing system does in actual fact need to be replaced. Create prototype: Users can be given a prototyped system and asked to comment on the prototype. In this way developers can find what users like and what they do not like and changes can be made; this is an iterative process, so the developer creates a prototype, test it with the users; and then repeat the process until such time that the user and the developer are in agreement as to what is required. 22.9 Ajax Manufacturing installed a new bar code based inventory tracking system in its warehouse. To close the books each month on a timely basis, the six people who work in the warehouse must scan each item in a 36-hour period while still performing their normal duties. During certain months, when inventory expands to meet seasonal demands, the scan takes as many as 30 hours to complete. In addition, the scanners do not accurately record some inventory items that require low operating temperatures. A recent audit brought to management ’ s attention that the inventory records are not always accurate. Which aspect(s) of feasibility did Ajax fail to consider prior to installing the inventory tracking system? Ajax Manufacturing failed to consider operational and technical feasibility when implementing their inventory tracking system. Operational feasibility considers whether the organization ’ s personnel can and/or will use the system. For Ajax, the 30 hours required to scan all inventory in a 36-hour period was very difficult on personnel and most likely led to human error in the inventory count due to fatigue. Technical feasibility deals with whether the technology is in place for the system to work. For Ajax, although the technology was in place and worked under normal circumstances, the scanners did not always work in the cold conditions of Ajax ’ s warehouse. Therefore, the technology sometimes failed, which resulted in inventory errors.