Accounting Information System Assessment 3
March 1, 2022
Internet of Things Assessment
March 2, 2022https://cheapestassignment.com/
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Systems Documentation and Internal Controls
Executive Summary
The report deals with the discussion and analysis of the Ransomware attack and its association with the Revenue Cycle of a business organization. The report deals with the overview of the Revenue Cycle including the order to invoicing of a company. Identification of the weaknesses in the internal control and the implications of these weaknesses in the Motherboards along with the More Revenue Cycle is described in the report. The report includes the specific internal controls that can be implemented by the organizations for mitigating these issues. The elaboration of suitable controls that can be recommended to be implemented at Motherboards and More is described in the report.
Summary
As an employee of Motherboards and More Pty Ltd in the accountant profile, reviewing the Revenue Cycle provided me with various insights regarding the aspects of management in association with the Ransomware Outbreak that occurred in May of 2017. The revenue cycle Motherboards and More Pty Ltd can be stated as the set of exchange transaction contracts between the company and the customers associated with the provisions of services and goods to the customers along with the collection of the payments in cash. The primary aim of the revenue cycle Of Motherboards and More Pty Ltd is to provide the appropriate product at the right time in the right place for the right price (Alewine, Allport & Shen, 2016). This company deals with the manufacturing of different parts of the computer such as motherboards, microchips and graphics cards. The company also happens to be a key supplier to various repairers and manufacturers in Australia. As per Alewine, Allport & Shen, the Revenue Cycle of the company begins with the placement of orders by the customers on the website of the company through email or by telephone. The sales that take place are credits. This also includes the large orders that are taken place online to the customers who are first-timers. The orders of the customers are then picked up and sent to the warehouse of the company (Alewine, Allport & Shen, 2016). The system of the business operation is configured to prepare the invoice of the sales only after the employees working at the shipping and enter the actual qualities which are sent to the customers.
Figure 1: Revenue Cycle
Identification
| Internal Control Weakness Of Motherboard And More | The internal control weakness of Motherboard and More would include the errors in picking up the wrong item of products for the customers and delivering to the customers. The weakness in the internal control of the company can also be seen from the delays in the shipping of the products due to the improper regulation and management of the stocks in the warehouse (Amran, et al., 2014). Improper coordination of the maintenance of the stock in the perpetual inventory as well as in the physical inventory is one of the key issues in the company.
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| impact these weaknesses | The improper regulation of the operations associated with the warehouse would lead to improper delivery of the products which are already relevant in the case of the company (Prasad & Green, 2015). The delays in the delivery due to delays in shipping of the products along with the errors in sending the wrong product to the customers will ultimately lead to dissatisfaction among the customers. This will further lead to a decrease in the business of the company as the customers would not be interested in shopping from Motherboards and More Pty Ltd (Seyal & Rahman, 2015). Thus, the business of the company will eventually decrease and losses will incur. |
| internal controls | The control measures that can be implemented by the company in its internal structure of operations are devising and establishing a regulatory body that would be in charge of checking the stocks of products at the inventory and coordinating the availability of the products with the department of the company handling the online registers and software of the orders. This body would be in complete control over the arrangements and maintenance of the inventory (Seyal & Rahman, 2015). The company has to strengthen the ties and associations with different shipping companies as the company would be able to ship the products at the scheduled time with no delays in case one ship is not able to leave off (Tazik & Mohamed, 2014). |
Brief Overview of the Ransomware Attack.
The ransomware attack was caused due to a piece of software that appeared to be self-replicating and taking unfair advantage of the vulnerabilities present in the older versions of Microsoft Windows. The most recent ransomware attack was reported in Britain in which many patients were forced to not get admission or health checkups in the hospitals due to a breach in the access in their software (ABC News, 2017). The cyber extortionists were able to trick the victims to open malware attachments that were malicious in nature as spam emails that appeared to have job offers, invoices, security warnings and various legitimate files. The ransomware attackers encrypted the data on the systems and demanded payments ranging from $300 to $600 for restoring access. Around 57,000 infections in around 99 countries including Ukraine, Taiwan, and Russia were found (ABC News, 2017).
Review Of Appropriate Controls
The control that the company can take for gaining protection against ransomware attacks is by ensuring the application of updates and patches. Updating the versions and applications of the patches need to be conducted by the Department of Information Technology of the company. The security scanning system of the company needs to be tested and changed on a regular basis in order to detect the rogue devices or programs that try to enter into the inventorying process sofa the company (Uyar, Gungormus & Kuzey, 2017). Even the devices that are associated with the Internet of Things such as speakers that are activated by voice, thermostats, etc are to be checked regarding the vulnerabilities regarding security.
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Final Verdict
Through the above case scenario, it is to be retrieved that in order to have proper functioning of business operations, the company needs to test the system of the backup system of the data which would have the critical data of the organization. The architecture of the backup system of data needs to be critically devised so as to build a tough and resilient framework of the data. The company needs to check the anti-virus protection of the entire network of the system so as to enhance the capability of scanning vulnerability of the company. This would also integrate upgrading of the old systems (Vanhoof, et al., 2016).
References
BC News (2017). ‘Biggest ransomware outbreak in history’ hits nearly 100 countries.. Retrieved 23 September 2017, from http://www.abc.net.au/news/2017-05-13/biggest-ransomware-outbreak-in-history-hits-nearly-100-nations/8523102
Alewine, H. C., Allport, C. D., & Shen, W. C. M. (2016). How measurement framing and accounting information system evaluation mode influence environmental performance judgments. International Journal of Accounting Information Systems, 23, 28-44.
Al-Hiyari, A., AL-Mashre, M. H. H., & Mat, N. K. N. (2013). Factors that affect accounting information system implementation and accounting information quality: A survey in University Utara Malaysia. American Journal of Economics, 3(1), 27-31.
Amran, A. M., Rahman, R. A., Yusof, S. N. S., & Mohamed, I. S. (2014). The current practice of Islamic microfinance institutions’ accounting information system via the implementation of mobile banking. Procedia-Social and Behavioral Sciences, 145, 81-87.
Prasad, A., & Green, P. (2015). Organizational competencies and dynamic accounting information system capability: impact on AIS processes and firm performance. Journal of Information Systems, 29(3), 123-149.
Seyal, A. H., & Rahman, N. A. (2015). A Preliminary Investigation of Measuring Users Satisfaction & Success on Financial & Accounting Information System: Bruneian Perspective. International Journal of Business and Management Review, 3(2), 1-22.
Tazik, H., & Mohamed, Z. M. (2014, February). Accounting information system effectiveness, foreign ownership and timeliness of corporate financial report. In 5th Asia-Pacific Business Research Conference (pp. 17-18).
Uyar, A., Gungormus, A. H., & Kuzey, C. (2017). Impact of the Accounting Information System on Corporate Governance: Evidence from Turkish Non-Listed Companies. Australasian Accounting Business & Finance Journal, 11(1), 9.
Vanhoof, E., De Bruyn, P., Aerts, W., & Verelst, J. (2016, May). Building an Evolvable Prototype for a Multiple GAAP Accounting Information System. In Enterprise Engineering Working Conference (pp. 71-85). Springer, Cham.
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