Question

In: Accounting

Examine the following case from Turner, Weickgenannt, and Copeland (2017): Arminello, Inc. does not use a...

Examine the following case from Turner, Weickgenannt, and Copeland (2017):

Arminello, Inc. does not use a database system; rather, it maintains separate data files in each of its departments. When a sale occurs, the transaction is recorded in the sales department. Next, documentation is forwarded from the sales department to the accounting department so that the transaction can be recorded there. Finally, the customer service group is notified so that its records can be updated. (p. 499)

Describe the data redundancy and concurrency issues that are likely to arise under this scenario at Arminello, Inc. Then determine the requirements for the database system and recommend a solution to achieve the desired results. The recommendation must reflect best practices for timeliness and completeness of the information, the controls that need to be in place, and the best platform for the system.

Solutions

Expert Solution

Answer:

In the situation where Arminello is working right now, every one of the divisions are working in seclusion where how much deals occurred, bookkeeping dept will come to think about it just when they share the documents with them, subsequently no coordination by any means. This can cause a considerable measure of confuse issues in the monetary postings which can demonstrate Arminello Inc. blameworthy amid Audits. Information repetition is likewise a noteworthy worry here since divisions don't have clear perceivability, information may get copied as a result of human mistake.

The best and all around polished answer for this issue is actualizing SAP arrangement which coordinates deals, generation, back and bookkeeping divisions. Every one of them will have constant perceivability in the information and information duplication winds up irrelevant along these lines. There will be no compelling reason to share or keep up the documentation physically since everything is accessible for everybody on one basic SAP stage. On the off chance that a few divisions need protection they can arrange the framework with fundamental endorsements for getting to their information.


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