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Case Study Smart Enterprises

Case Study Smart Enterprises


Recently you attended a presentation by Dr Peter, renowned entrepreneur and business leader, who spoke at length about the development of an accounting information systems and, what he referred to as the ‘life cycle approach’. After the presentation you returned to your workplace and discussed the virtues of this approach with your boss, Alex. Alex was extremely interested because he has become aware that the current accounting information systems is inadequate for the developing needs of the business. He asked you to do a number of things for him in your ‘new role’ as the Accounting Information Systems Development Officer.

1. Write a brief report identifying the role that would be expected of the management team in the development and design of a new accounting information system. The underlying issue is really the role you would expect Alex “your boss” to play. 

2. Would you expect that the people who will use the new system should have a role in any analysis leading up to, in the selection of and implementation of the new accounting information system should one be selected?

3. Write a clear and comprehensive report on what would be involved in the adoption of a life cycle approach to adopting a new accounting information system. Specifically identify the stages that would need to be engaged in, and staff likely to be involved. Alex, your boss, also wishes to know whether consultant costs would be incurred?

Part 2:

As the internal auditor for Smart Enterprises, you have been asked to document thecompany’s payroll processing system. Based on your documentation, Smart Enterprises hopesto develop a plan for revising the current system to eliminate unnecessary delays inpay check processing. The head payroll clerk explained the system:

The payroll processing system at Smart Enterprisesis fairly simple. Time dataare recorded in each department using time cards and clocks. It is annoying, however,when people forget to punch out at night, and we have to record their timeby hand. At the end of the period, our payroll clerks enter the time card data intoa payroll file for processing. Our clerks are pretty good—though I’ve had to makemy share of corrections when they mess up the data entry. 

Before the payroll file is processed for the current period, human resourcessends us personnel changes, such as increases in pay rates and new employees.Our clerks enter this data into the payroll file. Usually, when mistakes get back tous, it’s because human resources is recording the wrong pay rate or an employeehas left and the department forgets to remove the record.

The data are processed and individual employee pay checks are generated.Several reports are generated for management, though I don’t know what theydo with them. In addition, the government requires regular federal and state withholdingreports for tax purposes. Currently, the system generates these reportsautomatically, which is nice.

You are required to:

1.  Prepare a context diagram and Level 0 DFD to document the payroll processing system at Smart Enterprises.

2.  Prepare a document flowchart to docum

ent the payroll processing system at Smart Enterprises.




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