INFS7004: Woodmaker Furniture Company Case Study - Accounting and Finance Assignment Help

Assignment Task:

Introduction 

You are a consultant in a business consulting firm. You are assigned to a client, Woodmaker Furniture Company (WFC), a furniture manufacturing business serving furniture shops across Australia. Its strategy is to sell stylish affordable furniture from recycled materials. In your first meeting with WFC you find that it uses old in-house developed computerised systems to record transactions in its following functions: Sales Department, Accounting Department, Procurement Department, Production Department (the Factory) and Warehouse. WFC also has IT Department as supporting department. 

WFC was a small family business and over time it grew into a mid-size company. WFC current systems were built following the growth, i.e. gradually added to support expanding processes. Its systems were built one department at a time throughout many years and intended to be integrated. However, until now they have not yet integrated them. 

Due to this integration issue, WFC uses paper document to send data between departments via manual input. All document are pre-numbered and filed in numerical order and all printed document can be traced to its creator because each staff has a unique user ID. However, the risk of losing these document is very high. This is a concern because all approval must be done on paper as there is no approval workflow embedded within these systems (i.e., no electronic approval). Therefore, the only way of finding out whether transactions have been properly approved is to check the paper document. Further, high data entry error could result in data held in different departmental systems are not updated correctly. Finally, to produce monthly financial statement, IT Department will have to compile end-of-month data downloaded from each departmental system. Overall, this integration issue creates organisation silos because departments do not have adequate means to share information or knowledge with each other. 

In view of those deficiencies, WFC realises that their current systems suffer from some critical governance issues. Therefore, they want to know whether to fix the existing issues OR to adopt an ERP available in the market to ensure streamlined integration across the company1. 

WFC is a mid-size private company that is run like a family business. It has a low employee turnover and a company culture that trusts employees’ integrity. WFC expects to start planning for its businesses expansion next year and hopes to attract big investors. Thus, this year, it aims to first improve its corporate governance.

Required Tasks 

As an Accounting Information System specialist, you are asked to assess all Expenditure Cycle processes detailed in the narration. 

You will review WFC current relevant business process and then assess existing internal controls to allow you to suggest improvements required. As a final step, you will determine whether WFC needs to adopt an ERP or not. In doing so, you will have to do the following: 

PART 1 

Task 1 (7 of 25 marks for this assessment item) 

Create: 

(i) A Structured Narration Table (1 mark)

(ii) A Context Diagram (1)

(iii) A Physical DFD (2)

(iv) An Annotated Structured Narration Table (1 mark); and

(v) A Logical DFD (2 mark). 

Task 2 (6 of 25 marks for this assessment) 

Create flowcharts of the current WFC systems you are asked to review. For ease of drawing, split the flowchart into two. 

Flowchart 1: from “Determine demand for goods” to “Receive goods” processes (3 Marks); and 

Flowchart 2: “Pay for good processes” (3 marks). 

PART 2 

Task 3 (6 of 25 marks for this assessment item) 

Refer to Flowchart 1 you have created in Task 2. Explain, using the table provided, the strengths and weaknesses of “Determine demand for goods” to “Receive goods”; by identifying two critical activities under each processes, associated risks, and common controls. Explain whether controls are present or missing and thus control activities for the associated risks that contribute to the achievement of the control objectives to an acceptable level (2 marks for each subprocesses). 

When assessing the internal control, you may refer to Tables 11.3 – 11.5 in Chapter 11 to ensure that you review critical controls in each subprocess. You may also use the “The Expenditure Cycle – Interview Protocol” as a guide. 

Task 4 (6 of 25 marks for this assessment item) 

As a consultant, provide an analysis and suggestions on what should WFC do. In your answer, identify WFC current company-wide weaknesses and what WFC needs to support its expansion plan. Clearly determine whether WFC will have to continue with its plan to integrate its departmental systems or to adopt an ERP on the market. Explain why. Discuss current technology used and future technological trend. Explain what approach should WFC use, Total Quality Management (TQM) or Business Process Reengineering.

This INFS7004: Accounting and Finance Assignment has been solved by our Accounting and Finance Experts at My Uni Paper. Our Assignment Writing Experts are efficient to provide a fresh solution to this question. We are serving more than 10000+ Students in Australia, UK & US by helping them to score HD in their academics. Our Experts are well trained to follow all marking rubrics & referencing style.

Be it a used or new solution, the quality of the work submitted by our assignment experts remains unhampered. You may continue to expect the same or even better quality with the used and new assignment solution files respectively. There’s one thing to be noticed that you could choose one between the two and acquire an HD either way. You could choose a new assignment solution file to get yourself an exclusive, plagiarism (with free Turnitin file), expert quality assignment or order an old solution file that was considered worthy of the highest distinction.