Case Study 04:

Geeta Rani is the treasurer of a local gymnastics club. As treasurer she is required to identify invoices for payment, prepare the cheque and in conjunction with the president sign the cheques, mail the cheque and update customer accounts.

Required:

a) Explain the weaknesses in the Accounting Information System that are not protecting Geeta in carrying out her duties.

b) The process of reviewing the recording procedures for an Accounting Information system should include three areas. What are they?

c) Define explanatory notes. Why companies need to prepare them?

d) Explain the key principles and practices of budgetary control and implications for

accounting systems.

e) Explain the key features of financial legislation relating to taxable transactions and

reporting requirements.