Prepare a brief report for the managing director

Louis P. Lou is managing director of Ann de-Pandy Ltd an established female lingerie retail company located in the north and the south-west of England. The company has been operating successfully for many years with the period between 1998 and 2004 being one of exceptional growth both in market share (customer numbers and sales) and overall profitability.

Over the past three years the company has continued to enhance its accounting information system and has recently upgraded its computer network, and will from August 2006 introduce an extensive web-based e-commerce facility. Louis P. Lou is however concerned that the accounting information system development – especially the development of a web-based e-commerce facility could potentially reduce the company’s level of control over its business operations.

Required

As the company’s systems accountant prepare a brief report for the managing director of Ann de-Pandy Ltd addressing the managing director’s concerns.

Solution:

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