PowerPoint Presentation
Revision Topics 5-12
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Week 5 – Risk Management and Assessment
WHAT YOU NEED TO KNOW
Understand the importance of the two models
The COSO Risk Management ERM (Quantifies Risk)
AS/NZS ISO 31000:2009 (Qualitative Approach)
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COSO Enterprise Risk Management (ERM)
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Understand what each of the 8 aspects of the model involves and why each is important.
Understand why internal environment is the foundation of all the other components.
Do you agree with the following statement: “Event identification is more important than the Internal Environment.”? Briefly discuss.
Accounting Cycles (Weeks 6 to 9)
GL & Reporting Cycles (Week 6)
Expenditure Cycle (Week 7)
Revenue Cycle (Week 8)
Payroll Cycle (Week 9)
Note: MYOB screenshots may be used as examples to assist with answering these cycle questions.
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Controls and Risks
Controls and Risks have been discussed throughout this unit on many different levels
Each of the accounting cycles have specific controls that can be used to minimise threats
Lectures 6 to 9 all deal with issues that involve the use of controls
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Control & Cycles
WHAT YOU NEED TO KNOW
Business Activities/ Processes, in detail
Key components, in detail, of each cycle
All documents and source documents and where the information to create and store these is located
Tables updated Journal entries that are created
Risks and Controls, in detail, and how these are applied in each cycle
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Control Activities
5 Key categories of activities: (refer page 178 text)
Proper AUTHORISATION of transactions/activities
SEGREGATION of duties
Design & use of DOCUMENTS & RECORDS
SAFEGUARDING Assets, Records & Data
INDEPENDENT CHECKS on performance
Be able to identify examples of specific controls and which control activities they relate to (e.g., undertaking regular inventory stocktake – Safeguarding Assets )
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Key GL Activities
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Explain why and how descriptive analytics can be used in the GL and Reporting Cycle.
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Update the general ledger
3.0
Prepare Financial Statements
2.0
Post adjusting entries
4.0
Produce Managerial Reports (budget variances)
Expenditure Cycle Activities
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Explain how fraud originating in the Expenditure Cycle can be detected.
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Ordering materials, supplies, and services
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Approve supplier invoices
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Receiving materials, supplies, and services
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Cash disbursements
Revenue Cycle Activities
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Explain how fraud originating in the Revenue Cycle can be prevented.
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Sales Order entry
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Billing
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Shipping
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Cash Collections
Key Payroll Activities
1. Update employee tables, tax rates and deductions
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A former SKM Recycling employee jailed for siphoning $168,000 of the business’s money into personal accounts told police who arrested her that she knew it was “a dumb move”.
Delwyn Burgess, 43, was sentenced to six months in prison and a two-year community corrections order, including 300 hours of community work, in Melbourne’s County Court on Friday.
The perpetrator used fake payroll records to make 98 payments into her own accounts between 2016 and 2017 while working as a financial officer at failed recycling company SKM. (source: ABC)
What controls have failed in this organisation and possibly why?
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Validate time and attendance
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Prepare Payroll
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Disburse Pay
Calculate & Disburse Employer paid benefits
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Week 10- Enterprise Resource Planning (ERP)
Aims to integrate together key processes into a single integrated system that accesses a single database
Integrates
Order entry
Manufacturing
Procurement and Accounts Payable
Payroll
Human resources
……..
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Week 10 – Developing Effective Systems & ERP
Advantages and disadvantages of different approaches to “acquiring” software: build, buy, rent (cloud)
What the advantages and disadvantages of an ERP system over an AIS
Moving to an ERP and Systems Development Life Cycle
To understand the importance of user involvement in the SDLC process (User Involvement and Managing Change)
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Do you agree with the following statement: “When it comes to renting (cloud) software”, the SDLC is not relevant.”? Briefly discuss.
Week 11 Big Data
What is Big Data: Structured vs. unstructured data
5 Characteristics of Big Data (volume, velocity, variety, veracity, value)
Privacy issues around big data
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Week 11 Big Data
Big data lifecycle
Business Case (cost – benefits etc.)
Visualisation and principles
Do’s and don’ts
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How is big data analysis helpful to increasing sales revenue?
Week 12 Analytics
Categories of analytics
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Week 12 Analytics
(Big Data) Analytics techniques
Correlation
Regression (supervised)
Clustering (unsupervised)
Classification (supervised)
Text analytics (Sentiment analysis)
Image/Video/Sound processing
Examples in accounting
Challenges and accountant’s role
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Do you agree with the following statement “Accounting as a profession will not change because of the developments in big data.”? Briefly discuss.
Good luck!
Consultations available
Please email: ogan.yigitbasioglu@qut.edu.au
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Thanks and all the best!
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