IDCS -Elective Unit - Computerised Accounting

Introduction

The aims of this module are to give the candidate an understanding of computer-based accounting systems. This will not only cover the practical use of accounts in an information system but will also give the candidate an insight into basic accounting procedures and the need for financial control and ensure that candidates appreciate the basic requirements of a computerised accounting program. Candidates must have access to computer-based accounting systems and spreadsheets to ensure that they are fully experienced in the practical applications of accounts.

This module is offered so that candidates can recognise why the accounts function is generally the first area within an organisation to be computerised and to provide candidates with an insight into basic principles of accounting to ensure that their understanding of any computerised systems involving accounting is improved.  

General Objectives

All of the objectives will require the candidate to demonstrate a practical understanding of how accounts are devised in computerised systems and the effect that computers have had on the accounting function.  

Upon successful completion of this module candidates will be expected to undertake appropriate practical tasks using computer software and answer assignment questions on:  

A Accounting Concepts.

List the basic concepts applicable to accounting and discuss the reasons for their development.

B Financial Accounting and Bookkeeping Procedures.

Demonstrate the appropriate computerised systems and techniques used for recording and presenting accounting information.

C Control and Audit Procedures.

Describe the need for Control and Audit procedures, with particular reference to the problems created by computer-based systems.

D Cost Accounting Procedures.

Illustrate some of the basic principle techniques used in Cost and Management Accounting and show how spreadsheet software is used in performing these techniques.

Specific Objectives

Objective A: Accounting Concepts

A1.Explain the reasons for keeping financial records and identify the various groups who use accounts.

A2.Describe the benefits gained from using computerised accounting systems and configure an accounting package.

A3.Describe the Accounting Concepts and Conventions and identify their applications within a computerised accounting system.

A4.Describe the categories for "coding" data to aid data input into computerised systems.

A5.Explain the need for standardization in the design and programming of computerised accounting systems.  

Objective B: Financial Accounting and Bookkeeping Procedures

B1. Describe source documents and show how the data provided is used to set up accounts in a commercially available accounting package.

B2. Record transactions in the different Ledgers in a commercially available accounting package.

B3. Prepare Trial Balances and identify errors not disclosed by the Trial Balance in both manual and computerised systems.

B4. Prepare Trading and Profit/Loss Accounts and Balance Sheets using a commercially available accounting package (adjustments for Depreciation, Bad Debts, etc will not be required).

B5. Identify the common attributes normally included in a commercial accounting package.

B6. Produce and evaluate printouts and reports available from accounting packages.  

Objective C:Control and Audit Procedures

C1. Identify why Control and Audit procedures are needed and the particular problems posed by computerised systems.

C2.Describe the role of the Auditor and the importance of the audit trail. Identify the techniques used in computerised systems for providing the audit trail.

C3.Describe the Internal control procedures in both manual and computerised systems.

C4.Describe the External controls and identify the procedures used by auditors, including computer assisted audit techniques.

C5.Identify the control problems created by on-line systems and Internet trading in the accounting function.  

Objective D: Cost Accounting Procedures

D1.Classify costs by relation to behaviour or function and state what the implications would be for computer programmers.

D2.Apply appropriate techniques used for calculating the cost of materials with the aid of computer software.

D3.Calculate the cost of specified jobs or operations using appropriate software.

D4.Demonstrate break-even analysis and marginal costing calculations and produce computer generated graphs.

D5. Prepare cash budgets for given periods using a spreadsheet.  

Practical Work  

Computerised Accounting has always been part of the International Diploma syllabus as NCC Education recognises that many candidates will eventually gain employment as programmers or systems analysts and good accounting records are an essential requirement for all organisations. Also many IDCS diploma graduates will find themselves working with accounting systems. Therefore, the philosophy behind including accounts in the syllabus is to ensure that candidates will have at least some understanding of the area, which they are trying to computerise.  

It is important to note that candidates are not expected to become trainee or part-qualified accountants on completion of this Module but they should have an appreciation of the basic requirements and activities of a computerised accounting system.  

Practical work in this Module should attempt to determine that candidates can demonstrate an understanding of the relevant objectives by making use of practical accounting systems. Typically this could involve candidates feeding accounting data into a commercial accounting program and analysing the results or examining a commercial computer package and devising a report commenting on the strengths and weaknesses of the package. Candidates could also be asked to create Budgets or calculate Break-even figures with the aid of spreadsheet packages.