ISYS accounting function choice?

Devlin

Hi Just a quick question.

Is it alright if I choose to do my ISYS report on both the Accounts Receivable and Credit Control functions of the company in question. I'm sitting the AAT case study and one of the members of staff listed for the accounts department does both the AR and CC functions for the company.

So just checking if I can use both areas, as I feel it would give me so much more to work with for the report.

I've got my plan to hand in to Kaplan (distance learning) in about 10 days and really don't want to get it back and have to do it all over again.

Cheers for any advice in advance.

CeeJaySix

Yes - you can cover as many (or as few) functions as appropriate, depending on the size/number of issues - the key point is to cover all the learning outcomes. My case study was a large company that I could have quite happily focussed on one function for, but I felt the most serious problems were company-wide - therefore I didn't restrict myself to specific functions but instead to specific issues. It's your project, as long as you can put together a piece of work that follows through logically and coherently without jumping all over the place, you can more or less do what you like. Covering two functions is fine.

Devlin

That's great advice, and just what I was hoping to hear. Cheers

welshwizard

I would say that the two functions are linked and, therefore, it would be important to explore all areas. Bear in mind that, whilst these two functions are linked, they should not be carried out by the same person (segragation of duties). You may find that the cashbook function is drawn into it as well!

Devlin

Cheers welshwizard, I'll definitely be looking into those areas.

When I first started looking at the case study I thought I could only choose the one function, and I was struggling with how to separate the two of them for the report but still cover all the performance criteria.

Devlin

I think this plan I'm doing is beginning to take shape now. But I'm struggling to figure out estimates for how much the company could save by reducing the potential for fraud?

In my mind, due to the lack of controls in place and the turnover of the company, the potential amount an Accounts Receivable clerk could be stealing is nearly impossible to put a figure on. Does anyone have any idea on how to estimate this?

CeeJaySix

For cost/benefit, it is not always necessary to quantify the benefit where it's not really applicable - as a basic example, upgrading security at a warehouse could prevent theft of £5,000 of goods or the entire stock of £1m. The benefit can simply be that you are reducing the possibility. You should always be able to put some kind of number on the cost though.

If on the other hand there has already been a loss suffered eg. £20,000 of stock was stolen by a third party last year, you can pull thlis into your benefit to show that this £20k (or the increase in insurance premium and payment of the insurance excess) could have been saved has these measures been implemented.