FACULTY OF ACCOUNTANCY UiTM

AIS 630
SEMESTER SEPT-JAN 2019
PROBLEM BASED LEARNING

PART A

Daily Fresh Sdn Bhd (DFSB) is a major producer and supplier of frozen foods in Klang Valley.
The manager, En Badrul, an engineer, started the business in 2005, which has since been
successful and has experienced steady growth. Reporting to him are six vice presidents
representing the company’s major functions – marketing, production, research and development,
information technology, finance and human resources. The information technology department
was just established last year, when DFSB began developing a new information system. The new
system employs a server connected to personal computers in each of the six departments. The
personal computers can both download data from and upload data to the main computer. DFSB
is still in the process of designing and developing applications for its new system.

During last audit exercise, the external auditor has recommended that DFSB should form an
information systems steering committee

Required:
a) Explain why the external auditor would recommend that AIS establish an information
steering committee, and discuss its specific responsibilities. What advantages can such a
steering committee offer DFSB?
b) Identify who would be most likely to serve on the committee.

Recently, the production department has requested that company develops a new inventory
tracking system for its warehouse since the existing system is quite problematic. The present
system uses bar code scanners to track inventory whereby warehouse personnel must scan each
item in the warehouse on a monthly basis. To properly close the books each month on a timely
basis, the inventory must be scanned in a 36-hour period. The warehouse employs six workers
who, in addition to their normal jobs, must perform the inventory count (scan). During certain
months, the inventory is allowed to expand to meet seasonal demands. During these months, the
inventory scans requires the warehouse personnel to work as many as 30 hours to scan all items
in inventory. In addition, the scanners do not always record all inventory items due to the low
operating temperatures required for DFSB’s inventory. As a result, the inventory records are not
always accurate and customers turn to other suppliers to get the items that are out of stock. The
production manager insists that a new system will benefit DFSB in term of lower handling costs
and improved customer satisfaction.

Required:
 c) Discuss typical components of a system requests.
d) Before approving any system request, feasibility study will first be conducted. Explain what
is meant by a feasibility study. List and explain the three types of feasibility study normally
undertaken in initiating the development of an information system
e) Identify and explain which aspect(s) of feasibility DFSB failed to consider prior to installing
the present inventory system.
f) Describe commonly used techniques in performing cost-benefit analysis
g) Describe possible techniques that can be used to quantify intangible benefits of a system
such as customer satisfaction as mentioned by the production manager.

In response to the request, a project management team was established to develop the new
system. Pn. Sharifah from the IT Department has been appointed as project manager and the
team members also include En. Radhi, the company’s accountant.

Required:
h) Explain what is meant by structured approached to system development
i) The waterfall model of system development lifecycle suggests that all stages are performed
in a strict sequence whereby one stage must be completed before the next can be carried
out and no stage can be repeated. Discuss possible critics of this statement.
j) Discuss the main concerns of accountants in developing new system
k) Discuss the skills required to become a good project manager

PART B

The ordering system of Bulan Terang Sdn Bhd, a company dealing in imported motor vehicles
sales having 20 employees for the past 15 years, is such that ordering documents have been
prepared manually by a set of 5 very competent staff. Due to changes in technology, the
management has decided in their five year plan to include technological advancements to be
initiated in the ordering system.

Orders are received directly from individual customer. If the order is accepted, a picking list is sent
to the warehouse. However, if the order is rejected, an order reject notice will be sent to the
customer.

A completed order document received from the warehouse is a supporting document to create an
invoice. After the information is stored in the system, an invoice is printed and posted to the
customer.

In approximately 30 days, the customer makes payment which is then processed by acquiring
information from the system to check and match the payment with the record in the system. If
everything matches, the payment is recorded in the system. After that, commission is paid to the
salesman, the payment is banked in to the bank, and the cash receipts entry is sent to the
accounting department in Shah Alam.
Required:

l. Draw a context level data-flow diagram of the system.

m. Draw an intermediate level data-flow diagram of the system.
n. Suggest two (2) ways of improving above sales system.