Makememoney Pty Ltd CASE STUDY & SCENARIO (Overview)

After graduating college with an Accounting Degree, you have successfully gained employment as an accountant with Makememoney Pty Ltd. Along with your outstanding academic record, you were especially chosen for your excellent knowledge of Enterprise Risk Management, specifically in relation to controlling Information Systems (Internal Controls).

Makememoney Pty Ltd is a distributer of several product lines and is currently looking to grow its operations by adding various new lines of products to its current range. Makememoney has also evolved into a strong and competitive business and now would like to expand further by engaging in e-business. The owners also plan to increase their sales and distributions by systematically increasing their outlets, and to do so, they plan to acquire other businesses that are aligned with its current core competencies. To achieve this goal, they plan to become a publicly listed company and then use the new capital to acquire already established businesses. The owners of Makememoney have recently purchased the business of a competitor and have merged it with their own business, which is working out relatively well, except that it is proving to be a bit of a challenge for the accounting department to integrate the newly acquired company's accounting system into their own accounting system.

Also, and due to increasing competition, the management at Makememoney are also pursuing new and innovative strategies to improve its position in the marketplace, such as streamlining its business processes and taking full advantage of current advances in IT. Management are very eager to improve operating efficiencies and to gain a competitive pricing edge by acquiring and implementing a new accounting information system. However, one issue currently confronting them is a slower than usual business growth rate, as well as higher operating costs. There is also some concern that forecasted performance targets for the rest of the year may not be achieved. Current data also asserts that there is a possibility of a broader economic downturn, as well as new competition coming onto the marketplace.

The management at Makememoney insist on upholding the process of Organisational Governance and good ethical behaviour. There is currently a good level of ethical conduct from both the management and employees, and management not only wishes for this to continue, but are also keen to improve its Enterprise Risk Management policy. It is aware that any disregard for sound ethical principles, either intentional or unintentional, may cause managers and employees to "cut corners", embellish performance results, misuse company resources, or otherwise act in a manner that may harm the business and its stakeholders. Therefore, what is currently very important to the management of Makememoney is the concept of Enterprise Risk Management, particularly the control of the information system, as well as acquiring and implementing a new Accounting Information System.