ACC539 Accounting Information Systems Is An Essay.

Nowadays, corporate credit cards are popular among business enterprise and this study aims at elaborating on the advantages and disadvantages on use of these corporate credit cards at Bucks Phyz. Misutilization of any technology can be bad and so is the case with corporate credit cards (Zhuang, 2014). The study broadly identifies the facts so that the report becomes interesting for the readers to read and gain some information out of it. Several internal control weaknesses had been identified in the report that can be identified within the sales process of Bucks Phyz.

To start with, Bucks Phyz had been involved in certain fraudulent activities that are majorly identified in this report in the next section. For this, the company needed to identify the risk by hiring accountant and auditor who can clearly present the risk with corrective measures on how to prevent it in the near future (Wu, 2014). The company faces several internal control weaknesses in their sales process that are clearly mentioned in this report with proper justification.

• The sales representatives at this company have to be responsible in undertaking several decisions.
• On evaluating the internal control weakness, it is found that the company faces problem with purchase orders as it is customary and need to meet with potential clients through email (Trigo, Belfo & Estébanez, 2014)
• On evaluating the internal control weakness, it is found that the company problem with the invoices as it is collected from the customers
• There was problem with the internal control as represented in the trade receivables ledger
• There was problem with the sales invoice dealings

• From the above-identified weakness, it can be cited that Bucks Phyzfaces problem with bad debts. It is the duty of the sales representatives to look after the funding activities so that there is sales maximization and risk minimization (Taheri, Momeni & Hashemi, 2016)
• From the above-identified weakness, it can be cited that Bucks Phyzfaces risk from collection of relevant customer data and this is due to wrong entry done during the billing system
• From the above-identified weakness, it can be cited that Bucks Phyz faces risk from making bonus payments and this is due to non-completed sales transactions within the business operations
• From the above-identified weakness, it can be cited that Bucks Phyz faces risk from bad debts as this is due to sales creditworthiness of customers as well as further lead to risk of loss
• From the above-identified weakness, it can be cited that Bucks Phyzfaces risk from unauthorized transactions and this is due to wrong entry in the accounting records (Qiu, 2016).

The auditor here needs to evaluate the manual and additional electronic components that govern these internal control weaknesses (Arvidsson, Holmström & Lyytinen, 2014). In addition, it is needed to protect the financial facts or information by maintaining high level of security and accuracy at each level. For this, the auditor needs to check over the integrity of cash receipts and disbursement of data as and when required. The duty of an auditor is to check these cash receipts and further control over disbursements as it is aligned or linked with supporting documentation. However, the auditor is responsible to check these steps help in protecting the corporeal as well as electronic cash transactions at the same time (Napitupulu, 2015).

Corporate credit cards come along with corporate liability. Corporate credit cards are one of the virtual cards that help in making hassle-free payments to vendors for every single transaction. By using corporate credit card, individuals can manage their travel policies as well as negotiate with the preferential terms with the key suppliers. These cards help in tracking expenses as well as staying in control, getting detailed transaction information, saving on online bookings, earning loyalty and customizing the card (Ancini, Vaassen & Ameri, 2014).

Pros of using corporate credit cards

• Insurance benefits
• Availing benefits of a Unique Management Information System
• Earning Loyalty Reward Points
• Lounge Access
• Tracking expenses
• Saving on online bookings
• Customization of card
• Less stress for employees

• Bad spending habits
• Risk of credit card theft or fraudulent practices
• Company imposed limits on these corporate credit cards actually restrict employees from making prohibited purchases but in reality that acceptable charges are denied. This finally lead to embarrassment to the cardholder where the charges may still get approved (Jia & Sun, 2015)
• One of the threats from this corporate credit card is unapproved charges that end up hitting the cardholder in the wallet. This means the cardholders make use of their individual payment cards to have their expenses report filed as well as approved by the management before being reimbursed in any case. Therefore, the employees could be on the hook of getting unapproved charges (Abbasi, 2014).

The auditor is responsible for testing the internal control that happen at Bucks Phyz so that further risk can be reduced. By evaluating the case at Bucks Phyz, it was noted that there was internal control present in the sales process within the company and that led to sales invoices as well as purchase orders (Belfo & Trigo, 2013). The auditor is responsible to look for random sample of transactions as well as evaluating the highlighted purchase orders, invoices and customer statements in the most appropriate way. Furthermore, it is the accountability of the auditor to evaluate the declaration statement while checking the purchase orders while working in the current challenging environment. However, Bucks Phyz should involve in auditing their own process used to look at each of the transactions. Thus, the auditor should be evaluating the internal control activities that help in looking at the day-to-day working of the operating activities within Bucks Phyz (Bajdor & Grabara, 2014).

In this case, it is suggested to Bucks Phyz that employees at Bucks Phyz should be issued these corporate credit cards so that they get the additional benefits while working for the company. The employees should properly understand the working of these corporate credit cards and submit the necessary documents that are needed by the company. Receipts need to be submitted by the employees on how much they spend for a given month. After accepting the norms of these corporate credit cards, the employees cannot go beyond the limits. Here, the company becomes benefited after issuing these corporate credit cards to the employees as they can now keep a track on their expenses especially when they are travelling. The employees will get several additional benefits that is already mentioned in the benefits section in the report where the employees will get access to airport lounge, getting access to detailed information about the transactions, employees can even customize their card, the employees can save when they purchase anything through online, the employees can even earn loyalty reward points.

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Qiu, F. (2016). Overall Framework Design of an Intelligent Dynamic Accounting Information Platform Based on the Internet of Things. International Journal of Online Engineering, 12(5).

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