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Reasons for Conducting the Engagement

Essay by   •  March 26, 2017  •  Research Paper  •  496 Words (2 Pages)  •  1,010 Views

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I. Rationale of the Engagement

a. Reasons for Conducting the Engagement

Technology has greatly affected the accounting profession. It has come in and changed the way accountants perform their jobs and duties. Technology has made the process so instantaneous that it is just a matter of encoding values and waiting for results after. But despite the numerous advantages automation in the accounting profession has laid, not every business is fit for such advancement, so it is incumbent upon the companies to determine if some transactions would be better processed in an automated system and which are best handled manually.

The focus of this engagement is to know the reasons why some small to medium enterprises (SMEs) still settle on the use of manual accounting system despite the multitude of advantages an automated accounting system can offer. This engagement also intends to identify both the strengths and weaknesses of the Coolzone Sales and Services, Incorporated’s current system and to find ways to improve such. This arrangement aims to determine whether the company’s decision to continue using manual accounting system suits the needs of their organization. This likewise aspires to provide a suggestion or recommendation to the company about the possible implementation of an automated accounting system that will enhance the company’s efficiency.

b. Significance of conducting the engagement

This engagement is important especially to Coolzone as this will help the organization to assess and diagnose possible problems and flaws present in the present manual accounting system used. After thorough analysis and examination, the consultants can propose feasible solutions to the problems detected in the current system. If Coolzone will permit the implementation, an automated accounting system can help the company in processing its transactions smoothly and more efficiently that in turn, can help them provide reliable financial reports and statements in a shorter time frame compared to the current implemented system. This engagement is geared towards the best practices and overall improvement of the organizational effectiveness by maintaining Coolzone’s future viability in a changing world in order to stay competitive in the industry.

c. Scope of the engagement

This engagement covers the current manual accounting system used by Coolzone. The consultants, together with the company’s accountant will discuss the way how various business transactions like sales, cash disbursements and receipts, and purchases are treated and recorded in the existing system. Coolzone’s accounting records, business documents and financial statements are also shown upon the discussions and data gathering. The information gathered from

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