Revenue Cycle For Motherboards And More Ltd †Free Samples

Question: Discuss about the Revenue Cycle For Motherboards And More Ltd. Answer: Overview of the revenue cycle for Motherboards and More ltd The basic activities which are undertaken under the revenue cycle are sales order entry, shipping, billing and the cash collections. Sales order entry In this activity the customer provide details for the order he want to get, and the company takes the customer order (Laudon Laudon, 2016). The next process is that the organization check and approves the credit of the customer, they also check the inventory availability of that particular good (Adenike Michael, 2016). The organization checks the inventory that is available to be able to fill on the order. When there is no sufficient goods on hand to fill on the order of the customer, there is a back order which is created. Once the order is available there is a picking ticket which is then created. This helps to authorize on the inventory control function to be able to release the goods to the shipping department (Laudon Laudon, 2016). The next activity if for the company to respond to the inquiries of the customer. Shipping In this activity there is filling of the orders of the customers and shipping them. In this process it consists of two steps the picking and the packing along with the shipping of the order. Billing In this activity it comprise of two tasks which are the invoicing and updating of the A/R (Romney Steinbart, 2012). In the invoicing there is creation of a document for billing processes which is the sales invoice that inform the customer the amount of money they will pay and where the payment will be sent (Adenike Michael, 2016). On the updating of the account receivable this is where information is used on the invoice to debit the customers account for the credit purchases and credit on the account of the customer when the payment have been made (Laudon Laudon, 2016). Cash collections The cashier usually handles on the remittances of the customers and make the deposits in the bank. The remittances usually provide the details of the names as well as the amount of the remittances of customers and send this to the account receivables (Laudon Laudon, 2016). The internal weaknesses of revenue cycle of Motherboards and More. Internal control weaknesses Impact of the weaknesses to the organization. Internal controls to be implemented in Motherboard and More organization. 1. In the sales order: There has been large numbers of the errors where the customers have been given wrong items. This could lead to losing of the customers as they are provided with the goods they did order. The image of the organization would be tarnished as many would stop relying on the product from the company. There should be data entry checks. The credit should be approved by the credit manager, and not by the sales functions. The workers should accurately record on the customer account balances. Additionally there should be signatures on the paper documents; these are the digital signature as well as the digital certificates which are issued for the E-business. There are is also the inventory control system that should be implemented. 2. In issues in the shipping and the delivery; there is shipping errors especially when the customers are sent wrong goods, wrong quantities and the wrong address (Tazik Mohamed, 2014). The company has encountered a loss due to this negligence as some product end up with the wrong customers. The company needs to reconcile the sales order with the picking ticket as well as the packing slip. They should implement the data entry application controls. There should be documentation of the internal transfers for the inventory, the periodic physical counts of the inventory along with the reconciliation of the counts for the amount that is recorded. Overview of the Ransomware attack. The ransomware is an attack which was caused by the self-replicating piece of the software and it takes the advantage of the vulnerabilities to the older versions of the Microsoft Windows (Tazik Mohamed, 2014). This attack usually spread from one computer to another as it finds the exposed targets (Laudon Laudon, 2016). The individuals who were responsible for this attack had demanded three hundred dollars to provide the access to the system which they had attacked (Brazel Agoglia, 2007). This ransomware attack encrypted the data on to the computers. This was the most disruptive attack which has ever been reported as it affected dozen of the countries and they locked the computers and held the files of the users and demanded ransom from multitude of the hospitals, the government and various companies across different sector. Appropriate controls to be implemented in Motherboards and More company to prevent ransom ware attacks. I would recommend the organization to implement the following measures to prevent an attack like this one highlighted. Backup your files: The greatest damage to which the organization may suffer from the ransomware attack would be the loss of the files. Back up is the best protection against any ransomware (Tazik Mohamed, 2014). Keeping of the files and the company information in a completely separate system is the best thing. The best they could back up is either to an external drive which is not connected to the internet. Use of an anti-virus program: An anti-virus program has the capability of scanning the files to be able to see if they contain the ransomware before even downloading them. They are able to block secret installation from any malicious adverts when one is browsing through the internet (Tazik Mohamed, 2014). It is always important to install updates: Organization more often release software updates to be able to fix the vulnerabilities which could be exploited to install the ransomware. It is always important and advisable to download the newest versions of the software you are using in the organization (Uyar, Gungormus Kuzey, 2017). In the case highlighted it showed that the attackers targeted the Microsoft software which were not updated. It is always important to be suspicious of the emails, and websites or the apps: The individuals in this organization need to be always cautious when opening the unsolicited emails or visiting the websites which they are not familiar with. Moreover, they should not download an app which is not verified by their official store (Tazik Mohamed, 2014). Conclusion Based on the report it has highlighted on the various aspect which affects Motherboard and More company. The report has focused on the internal weakness which the company has encountered in regards to their revenue cycle, the ransomware attack and the various means to prevent similar situation occurring in the organization. References Adenike, A. T., Michael, A. A. (2016). Effect of Accounting Information System Adoption on Accounting Activities in Manufacturing Industries in Nigeria. Brazel, J. F., Agoglia, C. P. (2007). An examination of auditor planning judgements in acomplex accounting information system environment. Contemporary Accounting Research, 24(4), 1059-1083. Gordon, L. A., Miller, D. (1976). A contingency framework for the design of accounting information systems. Accounting, Organizations and Society, 1(1), 59-69. Laudon, K. C., Laudon, J. P. (2016). Management information system. Pearson Education India. Romney, M. B., Steinbart, P. J. (2012). Accounting information systems. Boston: Pearson. Tazik, H., Mohamed, Z. M. (2014, February). Accounting information system effectiveness, foreign ownership and timeliness of corporate financial report. In 5th Asia-Pacific Business Research Conference (pp. 17-18). Uyar, A., Gungormus, A. H., Kuzey, C. (2017). Impact of the Accounting Information System on Corporate Governance: Evidence from Turkish Non-Listed Companies. Australasian Accounting Business Finance Journal, 11(1), 9.