Thursday, December 12, 2019
Sustainability Accounting Systems and Information Assurance
Question: Discuss about the Sustainability Accounting Systems and Information Assurance. Answer: Introduction The following study states the systems documentation as well as the risk analysis procedures of JK Saddlery. It evaluates the significance of context and level DFD as well as the process map in ensuring effective business operation. JK Saddlery manufactures saddler as well a rural supplies to local suppliers and tourists. The business entity prefers the traditional mode of selling goods and offers goods to the local suppliers. The goods are sold through credit as well as the cash sales of goods. In the recent years the firm has been achieving considerable cash inflow. However, the brand has employed only a single cashier in recording the financial transaction for collecting cash and credit payments for suppliers. Thus, Hall (2012) noted that there remains considerable risk relating to manipulating of financial data as well as the embezzlement of funds. The study identifies these risks and offers the control measures to overcome threats that pose a threat to the business sustainability of the enterprise. Systems Documentation Figure 1: Context Diagram (Source: Created by author) Figure 2: Logical Diagram (Source: Created by author) The context as well as the level DFD indicates the operational policies of the business enterprise. There are three Stages in the context and level DFD in the business organization that includes the Process order, Cyber back as well as the execution of the goods. As such, this cycle is completed through the following stages: Requisition of goods, preparing Sales order, and executing goods to the consumer. According to Geerts et al. (2013), these three stages shall ensure successful completion of the sales order. In this regard, it can be stated that the market and the operational policies of the business enterprise shall be determined through the implementation of the sales order in the business organization. The above context and the DFD diagrams shall help the consumers in the decision making process. As such, the context and the DFD diagram shall help the management of the Business entity to implement relevant business operational and marketing strategies to make the sales procedure more effective. However, the execution and discharge of the goods is a complicated procedure that is dependent on sales requisition order as well as the development of the sales requisition order of the business entity. In this regard, it can be stated that DFD diagram is a simplistic yet innovative procedure that can help the business entity to execute smoother sales operations. The logical and DFD framework is not a unified procedure and vary according to the business segment the business organization is currently operating. The business process mapping states the inherent business structure that is implemented in the business organization. Figure 3: Process Map (Source: Created by author) The above process map depicts the sales procedure followed in the business organization. The invoice payment in the goods would be evaluated to understand that it meets the relevant compliances and the necessary guidelines in the business organization. The operational department shall examine each of the goods that is to be sold by the suppliers. Therefore, if any good does not match with the requirements of the consumers it shall be duly returned to the supplier. The above process ma states the total sales procedure that can be followed in the business organization that would add to the operational competencies of JK Saddlery. Risk Analysis There are inherent risks existing within the financial structure of the business organization. In the case of JK Saddlery, a manual process is implemented in the business organization in recording the cash transactions as well as the collection of funds. From the case study it can be established that the recording of the cash transactions is a complicated procedure and can require considerable time. Thus, this can have an adverse impact on the execution of the financial strategies for the business entity. The cashiers job involves a lot of complexities. In this regard, Messier (2016) noted an error from the sales receipt order could lead to discrepancies in the total sales procedure and the collection of funds in the business organization. Lack of personnel in the human resources of the business organization is one of the attributes behind the financial risks in the organization. The cashier of the business organization handles the entire financial aspect. Thus, the job role is not allocated into the various other functions of the organization. As such, the management of the business organization has to take the necessary measures so that the whole finance department is not dependent on any single person. JK Saddlery has delivered consistent business performances over a period of time, which has resulted in consistent sales revenue over a period. Thus, Collier (2015) noted that these huge amounts of cash transactions have to be evaluated in an intensive manner so that there is no discrepancy in the financial transactions of the business entity. Exact tax payments for the business enterprise can be another issue if the financial transactions are not regulated in an appropriate manner. Bebbington et al. (2014) stated that the major consequences of incorrect financial assessment would lead to the wastage of the financial resources of the entity. In addition, this can result in the rise in the operational expenses of the business entity. Besides this, there is no internal auditing procedures that is followed in the business organization. Therefore, there is no constant monitoring of the financial procedures followed in the business organization. As such, this is one of the essential weaknesses present in the financial system of the business organization. Therefore, this is a major risk present in the operational policies of the business enterprise and can have an influence on the financial condition of the business entity. The payments received by the mail shall have to be evaluated in an depth manner to prevent any kind of duplication. Duplicated cheques shall have to be scrutinized to be prevent any kind of financial losses or bad debt for the business entity. In addition, the banking policies in the business entity have to be evaluated in determining the operational strategies of the business entity. According to Simons (2013), the banking strategies in the business entity shall contains existing discrepancies that results in delay of the recording of the funds. Implementing an internal audit department in the organization shall help the business entity to monitor the inflow and outflow of cash in the organization. Besides this, Zadek et al. (2013) stated that the business organization must recruit accounts personnel in the business organization to immediately recruit accounts professional in the business organization to increase authenticity of the finance transactions. In addition, the business entity shall have to assess the financial condition of the business entity for the development of the organization goals and the objectives. The brand has to adopt effective accounting software for quick recording of the financial transactions of the business entity. In this regard, it can be said that the accounting softwares shall help in doing financial analysis of the organization. Techniques like ratio analysis and budgeting techniques of the organization shall help the business organization in assessing the financial position of the organization and responding appropriately for organizational growth. In the existing time, the consumer buying process is manual and no emphasis on technology. Therefore, it is necessary that the buying process is re-innovated in ensuring smoother business operations. Geerts et al. (2013) stated that the consumer needs to spend less time for the payment of bills that would reduce the crowd in the business entity. Conclusion It can be stated that JK Saddlery shall have many issues in existing cashiering position of the business. This includes that there are several technical complexities in the financial operations of the business entity. As such, the management of the business entity has to respond appropriately to frame the necessary financial strategies and policies to help the business entity in address the issues related to the recording of financial transactions and collecting cash for the business organization. If such issues are not overcome, these factors shall lead to rise in the operational expenses of the business entity. The systems documentation in the organization states the total processes involved in the operational processes of the business organization. These include tools like E-commerce, cyber check and the shipping or the execution of goods. In the context of DFD and logical diagram, the brand shall have to take the steps like sales requisition, developing sales order and ultimately executing the goods to the consumers, The internal auditing tools of the organization would help the business organization in ensuring authenticity and transparency in the books of accounts in the organization. Besides this, the organization has to recruit more workforces in the accounts and finance department to ensure greater coordination among the organization during the sales procedure. In this regard, it can be stated that the management of the business enterprise has to select the appropriate accounting software that shall fulfill the needs of the organization. References Bebbington, J., Unerman, J. and O'Dwyer, B., 2014. Sustainability accounting and accountability. Routledge. Collier, P.M., 2015. Accounting for managers: Interpreting accounting information for decision making. John Wiley Sons. Demski, J., 2013. Managerial uses of accounting information. Springer Science Business Media. Geerts, G.L., Graham, L.E., Mauldin, E.G., McCarthy, W.E. and Richardson, V.J., 2013. Integrating information technology into accounting research and practice. Accounting Horizons, 27(4), pp.815-840. Geerts, G.L., Graham, L.E., Mauldin, E.G., McCarthy, W.E. and Richardson, V.J., 2013. Integrating information technology into accounting research and practice. Accounting Horizons, 27(4), pp.815-840. Hall, J.A., 2012. Accounting information systems. Cengage Learning. Messier Jr, W., 2016. Auditing assurance services: A systematic approach. McGraw-Hill Higher Education. Simons, R., 2013. Levers of control: how managers use innovative control systems to drive strategic renewal. Harvard Busine ss Press. Zadek, S., Evans, R. and Pruzan, P., 2013. Building corporate accountability: Emerging practice in social and ethical accounting and auditing. Routledge.