Question

You have been hired to evaluate an accounting information system for fixed asset inventory tracking to determine if proper controls and security are present for financial reporting. You notice the company has a number of items in inventory but there does not seem to be any pattern to the data they collect. For example, some items have a location or department where the item is located others do not, some items have a tracking tag, others do not, etc. How would you set up a fixed asset database for this company to ensure proper controls over the data, security of the items, and the accuracy of the data for financial reporting?

Provide an example of your database(s) design and why you selected that design.  

Answer 1

In selecting a fixed asset databse design the following are what we should be looking in selecting a particular design:

1. Selected the database design based on the size of our project - There are many aspects that come with choosing a database design starting from basic tracking units to linking our hardware to accounting and also life cycle management. Even small office supplies like ink and paper needs to tracked so there should be clarity on what needs to be tracked and we selected based on the availability in this particular design.
2. A provison for all responsibilites to be assigned to all levels- Fixed assets range from a smallest levelt o ahigher level. The system should allow tracking at various levels right from an executive level to CFO and cater approvals at each level.
3. System should allow a step by step procedure- Initial recognition of asset like base, cost and class .Record should be created in system. Tracking Depreciation and shifts between various departments.
4. Modern Technology like Barcodes, asset tracking codes and remote controls
5. Inculcating features for upcoming technologies and wifi , cameras and other tracking devices.
6. Security measures properly taken care with right fingerprint technology and education to user departments.
7. Alien assets clearing time to time for a long time of zero activity,

The above are all the features that we look forward in a database design for fixed asset inventory management software and accurate financial reporting.