Part (a). You are working as an accountant in XYZ Limited (a mid-size accounting firm with a reasonable range of clients). Currently, you ask the employees to provide the relevant information to initiate the planning phase of the audit. Further, you plan to draw the data from analytical reviews and substantive testing from the operational database. However, the management of your client wants you to draw the data from the data warehouse. The management argues that the data extracted from the operational database will disrupt the operations. Further, the management points out that operational data are copied weekly into the data warehouse, and all data you need are contained there. Required: We have discussed the operational database and data warehouse under the topic "ERP Core Applications" in the Week 10 Interactive Tutorial. Based on this discussion, outline your response to the management's proposal and mention any concerns you might have. Part (b). Production planning and control, work centres, inventory control, and cost accounting play an integral role in the conversion cycle. We have discussed the business activities performed in these departments in our lectures and interactive tutorials. Figure 2.1(the figure is attached) illustrates some of these business activities. Required: Discuss the control problems and the possible dangers in the business activities of these departments. Further, recommend the corrective procedures to overcome these dangers.
Part (a). You are working as an accountant in XYZ Limited (a mid-size accounting firm with a reasonable range of clients). Currently, you ask the employees to provide the relevant information to initiate the planning phase of the audit. Further, you plan to draw the data from analytical reviews and substantive testing from the operational database. However, the management of your client wants you to draw the data from the data warehouse. The management argues that the data extracted from the operational database will disrupt the operations. Further, the management points out that operational data are copied weekly into the data warehouse, and all data you need are contained there.
Required: We have discussed the operational database and data warehouse under the topic "ERP Core Applications" in the Week 10 Interactive Tutorial. Based on this discussion, outline your response to the management's proposal and mention any concerns you might have.
Part (b). Production planning and control, work centres, inventory control, and cost accounting play an integral role in the conversion cycle. We have discussed the business activities performed in these departments in our lectures and interactive tutorials. Figure 2.1(the figure is attached) illustrates some of these business activities.
Required: Discuss the control problems and the possible dangers in the business activities of these departments. Further, recommend the corrective procedures to overcome these dangers.
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