ACCY6108 Assessment 2

Weighting  – 25%

Learning Outcomes

• Analyse the role of accounting information systems in strategy and value creation for organisations
• Utilise accounting information systems and technologies to meet reporting and operational obligations in an organisational context.
• Outline requirements for constructing, delivering and managing systems development in an organisational context.
• Develop procedures that minimise control and fraud risk exposures in an organisational context.

Instructions

Complete and submit your assessment according to the Open Polytechnic’s Assessments webpage. This includes information on academic integrity, formatting, word limits and referencing.

• Include your name, student number and the assessment number.
• Number your pages.

Submission

• Submit your assessment in two files: one file containing your written answers for Tasks 1, 2, 3 and 4 (flowcharts can be added as images to this file) and one file containing the Excel answers for Tasks 1 and 2. (For the Excel tasks, add each answer as a separate worksheet. You may use the template provided.)
• Submit your work through your iQualify course.
• Emailed assessments will not be accepted.
• You will receive an automated notice advising you of your successful submission.

By submitting your assessment, you confirm that it is your own original work.

Assessment 2 Tasks

Task 1: Importing and exporting data to and from Xero

Scenario 1: Forge Consulting Group (FCG)

Forge Consulting Group (FCG) provides professional consulting services across Aotearoa New Zealand, with offices based in Wellington and Christchurch. Until now, each branch has been operating its own accounting information system, which has resulted in unnecessary duplication and inefficiencies. To improve consistency and streamline financial operations, FCG’s management has chosen to consolidate all regional accounts into a single system using Xero. As part of this transition, FCG has supplied two Excel spreadsheets containing all currently outstanding sales invoices from both the Wellington and Christchurch offices.

These files can be found on the Assessment 2 page in iQualify and are named as follows:

• FCG Sales Invoices – Wellington.xlsx
• FCG Sales Invoices – Christchurch.xlsx

Part A

You are required to:

• create a new business in Xero
• import the sales invoices from both offices into Xero
• export all the sales invoices to an Excel file named:

o FCG Sales Invoices – All Offices.xlsx

(10 marks)

Part B

Write a 300-word reflection on your experience completing this task. In your reflection, note the key actions you took to successfully combine the files from the two offices.

(Word limit: 300 words)

(5 marks)

(Task 1 total: 15 marks)

Task 2: Data patterns, visualisation and sampling

Scenario 2: FCG data analysis

Following your success in combining the data from the two offices of FCG (in Task 1), the Director of Finance, Aroha Ngata, has requested that you provide further insights into the FCG sales data for presentation at the next monthly senior leadership team (SLT) meeting.

Aroha has provided you with an Excel file containing sales data. She reminded you that, based on experience, senior leaders highly value insightful data presented in an appealing and easily understandable way using Excel. Based on what she knows about the agenda for the SLT meeting, Aroha has listed specific analyses she wants you to complete using the file named ‘FCG Sales Data.xlsx’, which is available on the Assessment 2 iQualify page.

Note: For a tutorial guide to help you complete Task 2, you can visit Excel Easy and other publicly available resources.

Required

Part A

Use a range of Excel techniques to produce an analysis that will enable the SLT to glean additional insights and visualise patterns in the dataset. Aroha suggests the following analysis to be performed:

a. create a pivot table to show the total quantity of each service provided by FCG to clients

b. develop one additional pivot table that you consider important for the SLT

c. write an IF function for invoices awaiting payment that specifies ‘overdue’ or ‘in terms’ as at 21 April 2025

d. write a COUNTIF function to determine whether there are any duplicate ‘reference #’ in the dataset

e. prepare a graph that can help the SLT visualise information about the total value of sales made in each city

f. produce one additional graph that you consider important for the SLT.

(12 marks)

Part B

Generate a random sample of 12% of the unpaid invoices to be checked for overdue payment as of 21 April 2025.

• Note: FCG expects payments to be made within 30 days of the invoice date, with grace for an additional seven days. Hence, invoices overdue by 37 days must be flagged for immediate follow-up.
• Use conditional formatting to highlight invoices to be followed up.

(8 marks)

Part C

Provide a 300-word reflection on the tasks executed in Parts A and B, including the basis for assumptions used to arrive at your provided solutions.

(Word limit: 300 words)

(5 marks)

(Task 2 total: 25 marks)

Task 3: Revenue cycle

Outdoor Living Limited (OLL) is a mid-sized, family-owned business based in Christchurch. The company designs and produces bespoke outdoor furniture, garden décor, and lifestyle accessories, with a focus on sustainability and craftsmanship. Over the past few years, OLL has developed a strong online presence alongside its physical showroom. It has recently expanded into the commercial market, offering credit terms to select business clients.

Customers place orders either through OLL’s website or over the phone. While online orders are automatically recorded in the company’s order management platform, phone orders are handled by the sales team and entered manually. The team prioritises speed and customer convenience, and although order confirmations are sent out, occasional mismatches between what the customer ordered and what was processed have occurred.

For commercial customers, OLL offers a 30-day credit facility. Credit approval is managed by the sales team, who use their discretion based on past interactions or customer relationships. There isn’t a formal application process, but the team keeps internal notes on regular buyers. A few larger orders have experienced delayed payments, but these are generally followed up by the accounts team on a case-by-case basis.

Once an order is confirmed, it’s sent to the warehouse for dispatch. Warehouse staff prepare the order using a printed pick list generated from the sales system. The packing process is fast-paced, particularly during peak season, and staff rely on experience rather than formal checks to ensure accuracy. Most customers receive their orders without issue, but a handful have contacted OLL about incorrect or incomplete shipments.

Invoices are issued from the accounts office once the order has been dispatched. The team uses a spreadsheet-based template to generate invoices, referencing order information as needed. Occasionally, invoices are delayed or need to be resent due to minor data entry errors or customer queries. Payment methods include bank transfer, EFTPOS, and cash for in-store purchases.

The showroom handles cash payments at the front counter. A designated staff member manages the till during the day and reconciles takings in the evening before depositing cash in the on-site safe. The same person usually prepares the bank deposit, and the process is largely informal, though discrepancies have been rare.

OLL takes pride in its customer service, though the company has recently noted an uptick in enquiries relating to late deliveries, missing invoices, and follow-ups on credits. These issues have prompted internal discussions about improving response times and communications.

Earlier in the year, OLL experienced a disruption when its internal systems were temporarily inaccessible following a suspected malware incident. The IT contractor was able to restore partial access using local backups, but some customer records were lost. OLL has since discussed the importance of improving its data backup processes, though no formal policy has yet been introduced.

Required

Evaluate OLL’s revenue cycle using the narrative description provided. In your evaluation, you must:

a. Identify and explain five (5) weaknesses of OLL’s revenue cycle. Ensure you explain the potential impact of each weakness identified.

(Word limit: 300 words)

(15 marks)

b. For each weakness identified in (a), recommend and explain one (1) appropriate control to mitigate the weakness in OLL’s revenue cycle. Ensure you explain how the control mitigates the weakness.

(Word limit: 300 words)

(15 marks)

(Task 3 total: 30 marks)

Task 4: System documentation

Kaimai Outdoor Gear (KOG) is a medium-sized business based in Tauranga, New Zealand. It sells high-end hiking, camping, and tramping equipment through a physical retail store. KOG sources products from local New Zealand suppliers and imports products for overseas suppliers, ensuring a wide range of inventory is in stock for its customers. Kamal, the Purchasing Manager, describes the process of purchasing inventory as follows:

Sales staff are trained to respond to customer feedback and keep a list of any inventory items that customers have indicated they would like to see stocked at KOG. At the end of each month, the file is sent to Kamal in the Purchasing Department, who reviews the list to determine whether any of the items might be viable to purchase for store stock. If Kamal decides to add an item to KOG’s inventory, he creates and approves a Purchase Order (PO). Three copies of each completed and approved PO are created: one is sent to the Inwards Goods Department, one is sent to Accounts Payable, and one is sent to the supplier.

When the Inwards Goods Department receives the ordered inventory, the staff member receiving the products matches them against the PO. If the products are not listed on the PO, the staff member creates two copies of Return Note (RN), that is, one copy of the RN is filed by date and the second copy is sent to the supplier with the returned goods. If the products received are on the PO, the staff member creates two copies of a Goods Receipt Note (GRN). One copy of the GRN is filed numerically with the supplier’s dispatch note. The second copy of the GRN is sent to Accounts Payable.

Suppliers send the invoice for the goods to Accounts Payable. When a supplier’s invoice is received, an Accounts Payable advisor matches it to their copy of the PO and the GRN. If the invoiced items match the approved PO, the invoice is paid. Payments are not made for any goods that are not on the approved PO. Once approved for payment, the supplier’s invoice is filed numerically with Accounts Payable’s copy of the PO and the GRN.

You will need to carry out the following tasks:

a. Use the description you have been given by Kamal to create a document flowchart to document the purchases subsystem at KOG.

(15 marks)

b. Use the information above to prepare a context (Level 0) data flow diagram to document the purchases subsystem at KOG.

(5 marks)

c. Based on your diagram in (b) above, prepare the Level 1 data flow diagram to document the purchases subsystem at KOG.

(10 marks)

(Task 4 total: 30 marks)

(Assessment 2 total: 100 marks)