Question

Stage 3 - you will write a memo to the company addressing a major concern of yours that you wanted to be sure was covered in this process: internal controls. Discuss the various changes that must be made when transitioning from a manual accounting system to a computerized accounting system. Consider what processes might need changed or if there are any new opportunities for fraud to take place given this change.

Answer 1

NAME OF COMPANY          Memo

Date: - 16.08.2018

        To:                        Director Finance                                                                  

From:                  John waden(CPA)

Subject: - Transforming from manual accounting system to a computerized accounting system.

Dear Director Finance,

                           The purpose of this memo is to inform about the changes to be made for transferring our manual accounting to computerize accounting system. We require adopting following changes/ prove to convert our system from manual to computerize system.

• First we require installing accounting software package on organization computer.
• Finalize data in manual system to ensure that all calculation is correct and all transaction recorded in accounting system.
• All accounts balance of manual system should properly transfer to new computerize system.
• Run both accounting system for temporary period of time.
• After trail period if new system runs as expectation, old manual accounting system should be discontinued. And manual system packs up and store for future requirement.

Due to conversation our productivity, data accuracy etc will increase buy there are many risk of new type of fraud in new computerized accounting system, which are as follows-

• Our accounting software package being housed in the cloud, there are more opportunities for hacker to get our business’s financial data.
• We require to correct input of our data in system otherwise our all reports and records are not accurate.
• Many time computer issues can raise due to virus, non supporting computer program etc .

If you face any problem in above contains, then you can freely inform me about problem.

                                Thank you for considering these suggestions.

                                                                                               

                                                                                                                                                (Signature)

John warner