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1. The management of my organization has come up with a style of governance that ensures that the AIS complement business processes and strategies. The management has developed a direct link between the two. The system should be users friendly to enable computer illiterate personnel to use the system in the right way. The security system of the system should be bullet proof to avoid any data loss.

2. Poor feasibility study and planning often leads to failure of the ERP software. The implementation of ERP is a complex undertaking that requires careful analysis and appraisal, something that most firms fail to do. Lack of training and education is another cause of ERP failure. Most firms fail to familiarize its employees with the program leading to its collapse. Failures of the ERP program destroys the company’s image, and make customers, and other stakeholders lose their confidence in the firm.

Failure of the ERP program represents a waste of the company resources and time. Other companies must be cautious not to incur the same losses as the study company. The failure also reduces the goodwill of companies a situation harmful to the survival of the company (Monk Et al 2006).

3. It may lead to destruction of the systems salient features. Improper use of the system may lead to loss of data and information as users can unintentionally delete contents of the system. Unauthorized access to critical and confidential information is another apparent risk. This may lead to loss of company secrets. The situation may also lead to a drop in production due to poor efficiency resulting from a workers inability to use the system.

Consider a situation where senior management requires an urgent piece of information to make a strategic company decision. The person who often does that role is sick and you are standing in for him. Since you do not know how to juggle your way in the system due to poor documentation, you fail to provide information. The management fails to secure a beneficial contract, and you get fired. Proper documentation is thus vital for both the management and employees.

4. Revenue manipulation and recognition, which may take the form of fictitious sales, early sale recognition and sales channels for selling company goods. Such practices show a fictitious sales and revenue value of the company. This leads to reporting of an incorrect profit figure. In the end, such activities lead to fall in share price of the company and litigation (Baker 2000).

A high percentage growth in sales is an indicator of fraudulent financial reporting. Management should have investigated such an increase in sales.

5. Management takes all the blame for any fraud in the company. This is because it is their sole duty to detect any cases of fraud in the company. The management should lead by example and ensure there is no fraud within its ranks. It is its duty to lay down measures for punishing fraudsters. Once management discovers fraud, it should suspend the culprit pending investigation. If found guilty, the culprit should be arraigned in court or fired and this would serve to deter other workers.

The company should have in place a system to detect fraud at the earliest possible stage. The systems in the first place should be fraud proof. The company should impose strict and severe punishment on any fraudulent personnel.

6. Embezzlement allows for manipulation of data to hide theft of funds. Poor salaries are key in encouraging the norm. Poor system security also encourages personnel to embezzle funds. Lack of heavy penalties to deter the vice is another cause. Embezzlement leads to loss of company resources and funds, which might lead to bankruptcy and closure of the company.

If not discovered, embezzlement can go on and on for a long time. Management must improve its system security in order to detect fraud. Once discovered, culprits must be severely punished to deter future fraudsters.

7. The best way is to simulate a data and information loss due to poor security. However, the employees should not be aware of the simulation. Making them see for themselves the consequences of data loss will make them  be personally responsible for the system security. This will help in developing a security aware culture in the firm.

The management is responsible for recruitment and staffing in the organization. The management is thus responsible for hiring the staff in the IT department. The competence of the staff is solely their responsibility. Highly competent staff will keep the system security high and vice-versa. The management is thus responsible for the system security.

8. Illegal personnel personal information is a breach of the company’s information system. If the access was for a short period, we can say the management took a timely action to avert the breach. If the access goes on for a long time, as was the case in Bata Shoe Company (http://www.bata.in/webbata/faces/tiles/catalogue.jsp?catalogueID=2), management fails to take timely action.

Personnel information should be secure from external access. Only top management should have access to such information. Low level employees trying to access such information should be severely punished.

9. The Japanese tsunami swept businesses away and destroyed infrastructure leading to permanent closure of many businesses. In 2001, closure of businesses in the world trade center was permanent. Customers no longer have access to services offered by the closed businesses.

However, some of these companies rose again after sometime owing to their disaster recovery plans. One of these plans is diversification such that a disaster affects only part of the company. The company can use profits from other operating branches to revive the stricken branch. A recovery plan is paramount in order to achieve company objectives.

10. Automated flowcharts are error free if well programmed. Such programs remove the human error aspect in the production process. Automated decision tables provide a timely advice on stressing decisions. Automated systems allow for proper and easily accessible documentation making auditing procedures easy.

Auditing programs are available in the free market. However, such programs are error prone, and it is vital to get such programs from trusted dealers. Amazon and E-bay are good sources. The recommended program should be easy to understand by the auditing personnel.

11. In Amazon, the order process begins when you spot the item you want to buy. The next step is checkout. The checkout is for entering the paying information and confirming the sale. However, before heading to checkout, a person has to confirm whether he or she is a new or old customer. A new customer has to create a new account. The site give the customer a step by step guidance up to the end (Maynard 2009).

There is a lot of writing on the landing page of the initial sale process. It would be easier for a new customer if the writings were minimum. The sale process requires a person to have an account with Amazon. The site should do away with this step.

After a customer decides what he wants, the customer fills his payment information on a checkout on the same page without having to do any login. This process is faster and easy to implement as its simpler.

12. The company should outsource the purchasing option. Another option is to order most or all items from a single supplier. This increases the probability of the supplier noting the multiple orders.

Monopolizing the supply to a single supplier may lead to a supply of substandard products due to a lack of competition. Late deliveries are also possible. The company should make sure to sue the supply company in case it defaults on its contractual responsibilities.

13. The cost of such an undertaking should not exceed the cost of an internal payroll system. The firm should also ensure the independence of the service provider. The provider should not have any close relationship with the directors and employees of the company. Any close relationship might see some employees receiving exorbitant rewards.

Outsourcing exposes personal data of employees to the external firm. The external firm might use such information to benefit itself. Outsourcing may create a rift with the employees. The firm should thus properly study the integrity of the service provider before releasing any data to them.

14. Technology improves the accuracy of financial reporting. It also improves the speed of reporting and reduces the occurrence of financial fraud. IFRS is strict in ensuring adherence to financial standards. IFRS assures the final user of the integrity of financial standards. However, IFRS are hard to understand and follow. Companies have to employ specialists to assist in implementing them which increases the accounting cost.

Regulatory changes, which touch on the accounting department, should be a serious concern of management as firms is all about making profits. The management should make the change as soon as guidelines for such a change become clear to them.

15. Traditional relational databases are hard to implement. Access to information in these databases is also slow and limited. The databases are, however, more secure considering that they are not over the internet. They are easy to implement and do not require massive capital outlay. Databases in the cloud are, however, faster and can be accessed from anywhere in the world, using the cheapest of gadgets. The ease of access and retrieval is what is making businesses move towards cloud computing.

Information kept over the cloud is prone to attacks and manipulation by malicious hackers. Companies should keep their clients well informed if their information is over the cloud. External clients may sue the parent company if it realizes that its critical information is in the cloud late in time (Paul 2004).

16. E-R diagrams are diagrams that show the nature of flow of work in an organization. The diagrams show the relationships between various departments in an organization. In redesigning a business process, these diagrams are instrumental in clearly showing how the redesign process.

Easy to understand and implement. Low cost. Universal, all departments can use the ER diagrams. Ease of documentation. Easy to track.

17.  A new system leads to a loss of efficiency in the organization; it might also lead to firing of workers whose services are no longer necessary. A new system may also strain the company       resources leading to a reduction in the company profits. The management should reassure its employees that their job is safe. The management should train and educate its employees on the operation of the new system to ensure a smooth transition. The transition to the new system should be gradual.

The introduction of the new system should be gradual. Training and education is also vital. Assurance of sufficient compensation to the sacked employees is also paramount. The release of the outgoing employees should be gradual. The employees should have ample time to get alternative jobs (Rogers 1995).

18. Accessibility: the package should be available when needed at any place.

Reliability: the package should be highly dependable.

Accuracy: the package should provide error free information.

Secure: the package should detect fraudulent activities at the earliest possible time.

Center point, which is payroll software, and turbo cash are software packages for use in small and medium sized companies. Center point, however, harbors more features and is highly recommendable. The software saves time during software processing. Center point assists in tax filling, and can be used by several companies at the same time.

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