QUESTION 2

Part A (10 marks)

Your client has requested that you assist them in setting up their accounting system and asks that you provide a brief description of what key systems and controls are required to ensure that they produce an accurate set of monthly reports. The client has specifically requested that you include in your comments: the accrual system of accounts preparation (2 marks), the bank reconciliation (2 marks), the use of accounting journals (2 marks), the double entry system (2 marks), and the type of reports to be produced (2 marks).

Part B (5 marks)

Your client has now asked that you provide comments on the use of a small business accounting software package, such as MYOB, Xero or Quickbooks. They have seen it advertised on the back of buses and want your advice of the advantages in implementing such a package into their business.

Part C (10 marks)

The client requires that you draw a diagram, showing the accounting process, from the source documentation to the final set of accounts, including all transactions flows and reconciliations required (3 marks) and a brief description of the key steps in the process (7 marks).