CUB Case Study
Companies, such as CUB from the case study, must be able to effectively use technology to their advantage if they want to be successful in the future. The accounting staff of CUB must be able to develop more timely and effective system controls for future financial statement purposes and inventory audits.
Diverse Opinions Accountants often have different views when it comes to using technology in accounting and the methods that are used in the process of preparing financial statements.
Some accountants are less willing to change the way they conduct their counting processes because they have always completed tasks in a similar manner and it worked for them. Accountant A, in this case, would be the accountant that is not as willing to embrace the technological advances that are available in the accounting field and use those advances to his advantage. Accountant B, on the other hand, would rather develop and maintain a system that provides a timely and accurate inventory for the company. Accountant A is pleased with how the audit of the inventory turned out, while Accountant B was quite displeased with the findings.
Accountant A is happy with how the audit turned out because it shows that the way he does his Job still works. He does not seem to worry about the decisions the company has made due to the error in the computer system. Accountant B is unhappy with the findings because she realizes how many decisions were based off of the computer systems unreliable information and how those decisions will affect the company in the long run. Policies and Regulations Policies and regulations should be used in order to employ a properly functioning Accounting Information System.
According to Deborah Beard and Joseph Went (2007), ‘The responsibility for establishing and maintaining a system of effective internal controls resides with management”.
CUB should create a policy that requires quarterly physical audits so that the company is not finding out that they have a flawed information system when the year is coming to a close. Also, conducting physical audits will provide feedback on the computer system so that the auditing accountants are able to find a solution if there are incorrect findings.
Accountants would also be given the opportunity to attend courses or seminars that will teach them how to effectively integrate technology into everyday accounting processes. Conclusion Ultimately, Accountant B has the right philosophy in dealing with accounting systems and the overall use of technology in business. She wants to account for the Inventory the right way, which means seen wants to texture out what is wrong Witt computer system so that the company can have a fast and efficient inventory system. According to the Bible, “work willingly at whatever you do, as though you were