University of Adelaide Adelaide Business School

ACCOUNTING SYSTEMS and PROCESSES (M)

TUTORIAL 5 - Answers Guide

BEFORE TUTORIAL 5

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 4 – From Excel workbook to a report in the Power BI
Desktop.pdf

The key aims of Topic 4 are to understand importing of MS Excel data to

Power BI Desktop, preparing data for analyses, writing a DAX expression,
understanding of data modelling by creating and linking tables, constructing
an interactive report; and improving report appearance.

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 and
raise questions about issues encountered during the tute.

2 Prepare the answers to the following questions:

Question 1
Sue’s Gallery sells original paintings by local artists. All sales occur in the store.
Sometimes customers purchase more than one painting. Individual customersmust pay
for purchases in full at the time of sale. Corporate customers, such as hotels, however,
may pay in installments if they purchase more than 10 paintings. Although Sue’s
Gallery has several bank accounts, all sales monies are deposited intact into themain
checking account. Draw an REA Diagram for the gallery’s revenue cycle. Be sure to
include cardinalities.
 Inventory Sales Employee

Customer

Receive
Cash
Cash
Employee

Question 2
For each of the following, discuss which data-gathering method(s) are most
appropriate and why:
a) Examining the adequacy of internal controls in the purchase requisition
procedure
b) Identifying the controller’s information needs
c) Determining how cash disbursement procedures are actually performed
d) Surveying employees about the move to a total quality management program
e) Investigating an increase in uncollectible accounts

For each of the following, discuss which data-gathering method(s) are most appropriate
and why:
Examining the adequacy of internal controls in the purchase requisition procedure -
Observation of procedures, interviews with employees, and documentation reviews (of
document or control flowcharts, for example) will all aid in understanding purchase

Accounting Systems and Processes (M) Tutorial 5 Page 2

requisition procedures. Each type of procedure will identify different aspects of the internal
controls in the purchasing department.
Identifying the controller’s information needs - An in-depth interview with the controller is
one way to determine her information needs. However, managers often don’t know what
information they need; they say they need the information they are now getting and little else.
Therefore, the interviewer/analyst must understand the manager’s function and the role of that
function in the organization. The interviewer should also ask the controller what information
she would like to receive that she is not now receiving. Interviewing is an efficient fact-
finding technique that allows a prepared and informed interviewer to ask "why" or probing
questions to better identify the controller's needs. Reviewing the reports that the controller
currently receives is also a good way to identify her needs.
Determining how cash disbursement procedures are actually performed - If the cash
procedures are documented, a review of that documentation will help understand how it is
supposed to work. The best way to understand how cash disbursement procedures are
actually performed is to interview employees, observe them, and prepare flowcharts and
notes.

Surveying employees about the move to a total quality management program - By using
a questionnaire, the opinions of many different employees can be gathered. Questionnaires
also produce information in a standardized format. A questionnaire allows employees to
think about the questions before giving answers and it is more objective than other data
gathering methods. Anonymous questionnaires will encourage employees to give honest
answers.

Questionnaires produce a "breadth" but not a "depth" of information. To go beyond the

questions in the questionnaire, interviews should be held with selected employees. The
purpose of the interviews is to probe deeper to find out why employees feel as they do.

Investigating an increase in uncollectible accounts - Interviews with employees and

examination of documents will provide good initial sources of information to investigate the
problem. Documents will show which accounts are uncollectible and help with an
understanding of the company's collection policies. Interviews will help determine why
uncollectible accounts have increased.

Question 3
Recent years have brought an explosive growth in electronic communication.
Laptops, netbooks, e-readers, personal digital assistants, sophisticated cell phones, fax
machines, e-mail, teleconferencing, office productivity software, and sophisticated
management information systems have changed the way information is received,
processed, and transmitted. With the decreasing costs of computer equipment and the
increasing power of automation, the full impact of computerization has yet to be felt.
Although the development of computer applications is directed at being user friendly
or user oriented, the integration of computers into the organization has had both
positive and negative effects on employees. (Adapted from the CMA Examination)
a. Describe the benefits companies and employees receive from
electronic communications.
Greater optimization of organizational resources, increasing productivity and
profitability.
More timely information for management decision making.
Easier and quicker access to corporate data.
More technological advancements, which sustains or increases the organization's
competitive status and ensures employees of marketable technological skills.
Standardized procedures and operations. Once a procedure or operation is
Accounting Systems and Processes (M) Tutorial 5 Page 3
standardized, computers will repeat the same logical procedures.
b. Discuss the organizational impact of introducing new electronic
communication systems.
The initial cost of some electronic communication systems is a major
capital purchase, requiring special procedures for capital acquisitions.
With the increase in technology, the organization will increase its
comparative advantage. Small companies who cannot afford the
technology may be squeezed out of the market.
Employees may experience a loss of confidence and fear change and/or the
loss of their jobs.
c. Explain
1. Why an employee might resist the introduction of electronic
communication systems
They may fear and resist change. This may include the fear that they will be replaced
by automation and lose their employment.
They do not know what the system is and how it will help them on the job.
Embarrassment of not knowing how to use the system.
2. The steps an organization can take to alleviate this resistance.
Communication of information as to why the system is being implemented and how it
will affect each employee's job. The intent should be to reinforce job security.
Education and training of employees on how to use the system by providing system
manuals and designated user support.
Giving employees the opportunity to make suggestions for improving the system.

DURING TUTORIAL 5

• Contribute to the class discussion of the above questions.

Please remember that you’ll enhance your learning by ACTIVELY

PARTICIPATING in the discussions.

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