There are constant changes in accounting information systems and it is challenging for companies to migrate from their current system to a new system. This research paper will identify three to five factors that contributed to the Interactive Teller Capture (ITC) system failure within BayPort Credit Union and the impact it had on the business. This paper will assess the responsibility of senior management for the information system failure and the steps they could have taken to avoid the failure. System failures can occur during the design, implementation or operational phase of the process. An evaluation will be conducted as to which stage the failure occurred and what could have been done to avoid the failed outcome. This research will …show more content…
First, there was a lack of communication between management and the third-party vendor Profit Stars during the planning and developmental phase of the ITC software as to the exact capabilities needed to properly perform shared branch check transactions. There is a glitch in the ITC system that does not properly image, endorse and link the check(s) information to the shared credit unions Symitar database. Once the imager scans the checks, they are not properly indexed or linked to the guest member’s account. The system does not record all the pertinent information from the check(s) such as account, routing and check numbers and check amount which requires the teller to manually input that information. The imager does not properly endorse the back of the check(s) with the guest member’s account and routing number, date and teller identification stamp and BayPort logo as the processing credit union. Second, management did not properly assess the new accounting system by first testing the system on “dummy accounts” before issuing a live version to its tellers. Lastly, tellers received insufficient training on how to properly use the ITC system and what to do if they encountered a problem. Tellers were unaware of requirements for imaging bulk checks (minimum of 25 checks per transaction), unfamiliar with error messages due to the system …show more content…
Managers that are not a part of the developmental phase are unaware of how systems are designed making it difficult to communicate its capabilities to the end-users. The purpose for developing the software was to ensure the check imaging and endorsing process of shared branch transactions would be more efficient for the end-user instead it was complicated and time consuming. End-users were not involved in the design phase of the ITC system therefore they could not convey their expectations and/or needs. Inadequate involvement of users in the design process is cited as a major factor contributing to the shortfall between expectation and reality (Damodaran, L., 1996). There are advantages to end-user involvement such as; improved levels of acceptance, accurate user requirements and better understanding of the system resulting in more effective participation. BayPort should have first identified and involved all the key participants such as information steering committee, management, users, project development team, system analyst and programmers in the design phase of the project in order to obtain commitment to the new system. It is important to specify each of the key player’s responsibilities for aiding in the development of the ITC system. Specific reports and other documentation, called deliverables, must be produced periodically during system development
Assignment of responsibility for certain functions of the bookkeeping and accounting process ensures that when a problem occurs a specific person is accountable. This, in turn, provides an incentive to that person to do their job correctly because any issue or problem will be their sole responsibility. Splitting duties has a similar impact on employees. By providing a system of checks and balances, i.e. one person keeps the records while another keeps the assets, the chance for fraud is greatly decrease and honest mistakes are easily caught. There are many physical, mechanical and electronic controls that provide further safety for a company’s assets. These include passwords, safes, alarms, security cameras, time clocks and locks (Kiesco et.al, 2008). The use of an auditor or other third party to independently verify the bookkeeping and accounting procedures performed by employees adds another layer of safeguarding to a company’s inter...
This case covers an audit on the IT department of Bluegreen Corporation; bluegreen corp. is a real estate developer and resort operator based in Florida, arranged by the company’s’ Vice President and CIO Sheila Beauchesne to achieve growth in the IT infrastructure of the company. The audit was carried out by the VP and CIO Sheila Beauchesne to understand the company’s overall spending and expenditure on its IT, GIP (Global information partners) were hired as the auditing team, Bluegreens IT financial auditor Krista Parker was made the audits main point of contact in case when the auditing team needs any information regarding the organization, and the IT manager of support Gary Kaul
A weakness of the bank is the fact that it did not invest in higher technology for its banking system. The bank was running off an old school server system where a Teller would have to put in a three-digit code to do any transaction for its customers and this was a very out dated practice that almost no larger banking organizations used. Money orders and cashier checks were also printed in an out dated traditional type of printers with ribbons and manual mechanisms. Other banking competitors had adjusted to a
There are several important people involved with this project and will help with the necessary changes needed for the Payable Audit System (PAS). Each person has a very detailed job description and the skills that would be used to make the changes to the system. First, Ted Anderson the director of disbursement began to notice how their current system was very labor-intensive. He knew of other ways to increase the productivity to the system and he would help in the plan to transform these changes. First, he changed the mind-set of how the system would work, and he organized a difficult training course with a 9 month duration designed for the employees. With his role on this project the company will make several fundamental changes, to pay the invoices in their tolerance. Keeping all history transactions, they would adopt a quality-control approach. Also eliminating all their paper files they would develop a Document Control System (DCS), where they would scan all of their documents into their computer system.
The use of Third-Party Intermediary minimizes the risk of inaccurate confirmations. Confirmation.com is an effective website that avoids human errors due to manual reconciliation of balances. From Tenth National Bank, a confirmation response was received by e-mail from Lou Jennings, the authorized signer, stating the bank sent the confirmation directly to the clients’ office. Mr. Jennings also included auditor credentials for Tenth National Bank’s online banking. Failure to not receive the confirmation directly from the respondent violates PCAOB Auditing Standards Paragraph 22 which the violation directs us to PCAOB Auditing Standards Paragraph 33 which obliges us to obtain further evidence to support an opinion. As we examined the response
Unlike the Accounts Payable master file and the company’s receiving reports, which are maintained by independent third parties, Wayland Manufacturing Company’s Accounts Payable and Purchases accounts are completed in-house with insufficient internal controls. The lack of sufficient internal controls increases an employee’s opportunity to commit and conceal fraud. In addition, the high employee turnover places the accounting department’s responsibilities on the company’s Chief Accountant, Fred Newbaker. The lack of a separation of duties enables Newbaker to create vendor invoices to commit fraud and the lack of a third party approval system enables him to conceal his wrongdoings (Arens, Elder, & Borsum 2013) (Accounts Payable and Disbursements Fraud
Rite Aide has choices in the solution that our organization can implement to solve these financial systems integration issues. The main issue facing it’s Financing and Accounting department is the lack of standardized systems, which includes software, data interfaces, and processes. Here are some solutions, Solution 1: Maintain and Enhance Existing Systems, the organization has three very different Finance and Accounting functions that need to be consolidating to provide a seamless environment that is able to grow with the business. One option would be to continue focusing the attention of IT and Financial Services Divisions on maintaining and enhancing the existing systems. This would require no upfront capital expense, but does not meet our short or long-term business requirements.
The second step is entering the transactions of the period in appropriate journals. This step consists of taking the journal entries, assigning each to an asset, liability, equity, expense or revenue account(s) to debit and credit. This can be done by almost anyone. I have had jobs where the bookkeeper does the journal entries and figures out which accounts are affected. I have also had jobs where anyone from a receptionist to a staff accountant does this step. If the person doing the journal entries does not have a background in accounting, or is unfamiliar with which accounts are affected, the person submitting the source documents will write down which accounts should be debited and which should be credited. This practice makes doing the journal entries little more than data entry, which can be done by nearly every employee.
The foremost challenge was the seamless promotion of the existing banking system and channels for the installation of new state-of-art IT infrastructure. In this regard, the changes made to the structure and functioning of the financial institution challenged the regulatory structure of the bank.
The unions also blame fiasco because the decision to outsource much of the company IT source. The error that happen also came after the software being updated froze part of the bank computer system lost on that particular day. The day that this problem occur was in the Wednesday. The system is being recovery and the problem is solved on the Monday.
Problems of technical attributes resulting in debiting of customer account without dispensing of cash should be repair
Auditing has been the backbone of the complicated business world and has always changed with the times. As the business world grew strong, auditors’ roles grew more important. The auditors’ job became more difficult as the accounting principles changed. It also became easier with the use of internal controls, which introduced the need for testing, not a complete audit. Scandals and stock market crashes made auditors aware of deficiencies in auditing, and the auditing community was always quick to fix those deficiencies. Computers played an important role of changing the way audits were performed and also brought along some difficulties.
The following essay aims to analyse in depth a computerised accounting system and its aspects such as its history, what technologies is based on, and how it has developed since its beginning. Other aspects such as the current state of the system and the interactions with other systems and the future of the system will also be covered in this paper.
Deposit slip issue, online fund transfer slip issues, statement issue and entering the balancing inquiry of the customers.