Accounting Information System

1. ‘Excessive stocks can camouflage manufacturing problems and lead to overproduction of products.’ Discuss

2. Explain why it is important for the accountant to be involved in product development.

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Describe the accounting controls you would expect to find in the purchasing system of a high street retail company, and discuss how the failure of such accounting controls could potentially affect the valuation and security of company assets and the disclosure of company assets in the annual financial reports.

A company’s sales system functions not only as part of the corporate marketing cycle, but also as part of the corporate asset interface/exchange process.

Required

Describe the accounting controls you would expect to find in a sales system designed for the sales of electrical commodities and discuss how the failure of such accounting controls could potentially affect the valuation and security of company assets and the disclosure of company assets in the annual financial reports.

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