Uploaded by Akib Ahmed Pranto

ACN301 Assignment

Assignment topic: Case Study
Course Code: ACN 441
Course Title: Accounting Information System
Section: 01
Submitted to: Mohammed Naveed Siddiquee
Submitted by:
Name: Akib Ahmed Pranto
ID: 1920790
Date of Submission: 14th August 2022
Table Of Contents
Executive Summary
According to this case study, the lone proprietor of a small pharmaceutical company has been under
stress as a result of the pressure of managing all the accounting responsibilities by herself from the
inception of her business. She doesn't have a business experience, yet she handles the accountingrelated tasks she is given fairly effectively. She just realized that the heart of her company requires
more of her time. She thought of establishing a cloud-based accounting information system for her
business as a consequence, hoping to lessen her workload. Cloud computing is the term used to
describe the on-demand availability of computer system resources, primarily data storage and
processing power, without direct active supervision by the user.
The word is frequently used to refer to data centers that are reachable by several users online. By
concentrating on the company's core activities rather than accounting administration, she may be
able to save a significant amount of time. This study aims to gain a better understanding of the
value, advantages, and potential downsides of cloud computing for accounting information systems.
I made an effort to address a few questions in this case that would help the reader understand more
about cloud computing, its importance in business, benefits, security issues, and risk mitigation
techniques. Whether or not choosing a cloud computing solution is heavily influenced by price.
These case study solutions might help the reader expand their business and use cloud computing for
accounting successfully.
Question No 1: Which could-based system accounting information system should Pia select and
Answer: Given her current situation, Pia should select the third strategy. As part of its fundamental
infrastructure, it will offer a network, operating systems, virtual servers, and data storage devices. It
will improve the scalability, reliability, and adaptability of Pia's pharmacy. Although Kluuvin
Apteekki is a small pharmacy, Pia, the owner, is having difficulty with the administrative tasks
linked to the money. As a result, she was unable to concentrate on the pharmacy's primary business.
If she chooses the third system, she could have more time to focus on her business. It features an
interface that is far more effective than the other two systems. It provides all the infrastructure
required to support online programs, including as storage, web and application servers, and
networking resources. Pia can quickly deploy web apps on IaaS and easily scale infrastructure up
and down when app demand is unpredictable, enabling her to easily change the app as she pleases.
Even though the third system costs more per month than the other two methods, there are no
transaction expenses. Pay per use is also an option. She was also experiencing problems processing
payroll due to the fact that nine out of sixteen employees work part-time, there is a high rate of
employee turnover, and the payroll system is vulnerable to change over time. The third system can
also be used to address the problem. Pia will be able to work with her accountants from any location
via an internet connection.
She may also immediately check on the condition of her business. She may freely choose which
tasks she wants to outsource while yet maintaining control over the process. There are several
deployment models. hybrid, public, and private. The third system provides access to all three
versions. Since cloud management corporations control public cloud, it is not secure, while private
cloud is secure, pricey, and time-consuming to maintain. Under IAAS, hybrid cloud models are
accepted. A hybrid cloud's goal is to provide users command over crucial phases of the workflow
while putting mundane and computationally taxing tasks in the hands of public cloud services. So
Pia will be able to simply separate her intensive work so that she has control over certain sections of
the job.
Question No 2: Should Pia be worried about possible lock-in with either accountant or system
Answer: Pia should not be concerned about contracts with accountants or system providers. She was
concerned about the security and privacy of her data because it was all stored on the cloud. In this
case, she can choose for a private cloud to ensure that all data and cloud implementations, such as
SaaS, PaaS, and IaaS, remain within corporate IT. As a consequence, she would not be required to
change system providers. Furthermore, Pia should evaluate their company's health, financial health,
risk management, and the supplier's capacity to confirm compliance with all of your requirements
through a third-party audit when picking a system provider. It is required to give a performance
report. It must have technical capabilities.
For all levels and types of cloud services, a comprehensive security architecture should be in place.
Pia will not have to change system providers if she picks her system provider based on the
availability of these goods. The third system is linked to an accounting service as well. Pia will use
the cloud system, thus she will not need to engage an accountant. The cloud system is entirely
automatic. This clarifies Pia's need for outside accountants.
Question No 3: How should Pia mitigate the possible data security risks?
Answer: Pia can help to avoid potential data security issues in a variety of ways. Cloud computing
is not inherently dangerous; it just has to be managed and used safely. There is no complete network
security solution to safeguard data, apps, or services, but good risk management may reduce the
amount of risk. So, before she chooses a service provider for her business, she must justify the
Data Security and Control: Service providers must be capable of detecting, preventing, and
responding to various security breaches. Service records and service agreement terms are checked
on a daily basis. Again, some validity checks are required for Pia's business to avoid security
breaches caused by hazardous cloud data, such as cross-site scripting, insecure configuration, SQL
injection issues, and flaws in access control within the company's regulations. Service providers
should give transparent services to Pia's firm (controls, security, and operations).
Network Security: The use of a firewall and allowed access privileges to prevent unauthorized
modification and access to data in a secure system is referred to as network security. To avoid
hijacking existing connections and collecting customers' credential data, Pia's service providers must
run testing and validate network security using well-known security techniques such as SSL, session
management, and packet analysis. Several regulations must be applied in the router and layer three
switch to secure data flow. The interaction between mobile consumers and cloud service providers is
another key factor that must be maintained.
Data Integrity and Confidentiality: A robust authentication and authorisation procedure should be
given to prevent unauthorized disclosure and manipulation of data. To protect and govern data
consumption, a developer must establish service development and deployment categories (Private,
Public, and Hybrid).
Data and Service Availability: Internet speed (bandwidth) and connection must be available during
data and application transfer over the network. To maintain successful load balancing and data
transmission, network service providers need monitor network load or traffic. Data replication and
backup policies must also be consistent and provide auditable verification of the correctness and
completeness of data restore procedures over time.
Access Control: Pia's service providers must exhibit effective and accurate security mechanisms to
prevent unwanted access. All access or changes to cloud services (resources and data) create an
auditable report, whether successful or failed, and it must be reviewed in conjunction with daily
monitoring. Pia, on the other hand, may manage and administer the infrastructure and corporate data
using the private cloud deployment approach. The primary goal of this deployment architecture is to
maintain a consistent level of security and privacy. She might also use a mixed deployment
Question No 4: Is price an important factor choosing the system?
Answer: Yes, affordability is an important factor to consider when choosing a cloud solution for
Pia's pharmaceutical firm. Given the size of Pia's company, it is obvious that the cost of the cloud
service must be considered. However, if this spending would benefit her company's efficiency and
development, she must pay a reasonable fee to the service provider. Pia has encountered a number
of problems with financial processes. As a result of needing to dedicate more time to accounting
procedures, she has been suffering from a lack of time she could give to the growing of her business.
Employee turnover, for example, may have an impact on payroll processes since nine of sixteen
staff work part-time. Again, she lacks commercial knowledge, which might lead to inefficient
accounting operations. Because each calculation must be performed methodically in order to
calculate the exact amount of tax to be paid. Considering these factors, Pia should be aware that
cloud-based account information solutions might be cost effective. Pia will be able to devote more
time to her principal business rather than accounting responsibilities. When choosing a system for
her company, she must weigh both the benefit and the expense. In the cloud-based accounting
information system, she identified set pricing, software license, monthly service fees, and other
hidden costs. Cloud computing is connected with lower rates since the whole service is run on the
service provider's servers. It is software-based, thus there is no need for an expensive software
investment. Pia can also pay for anything based on her usage. Pia must, however, examine which
service provider would be better and more beneficial to others in terms of cost and efficiency. The
more money pia spends on a cloud-based accounting information system service provider, the more
effective and accurate accounting activities may be completed. Pia should prioritize business
efficiency above accounting costs since accounting is complex and difficult to handle. Finally,
because Pia's firm is little and the strain is too much for her to handle alone, it is advisable to pay for
a reputable service provider so she may focus on the heart of a business rather than accounting
Question No 5: What is the optimal division of work between Pia and the Accountant? Should Pia
outsource all accounting tasks, use selective outsourcing, or keep all tasks to herself? Evaluate each
accounting task on their suitability to outsourcing in the cloud context. Use table A1 provided in
appendix and discuss the implications of your choices.
Pia should outsource selectively. Because her primary motivation for considering
outsourcing is to devote more time to the core of the business pharmacy, and in order to do so, she
must allow the other accounting tasks to be outsourced with a specific outcome by the cloud system
rather than doing all of the work herself or delegating the expertise of an accountant to an employee.
Sales: Pia should go through the sales account one at a time since it provides precise
information like the sale date, invoice number, customer name, items sold, sale amounts, and
so on. Someone in the pharmacy, such as Pia, effectively performs the task of keeping client
and product registers, issuing and managing sales invoices, and maintaining the sales ledger.
Payroll: Because the pharmacy's payroll operations are somewhat complex and other
personnel work part-time, Pia will find it much easier to outsource payroll responsibilities.
Furthermore, Pia must record the hours spent by employees every day, which takes a great
amount of time. Furthermore, payroll computations are especially susceptible to mistakes
since they immediately affect the employee's pay checks, which can cause stress if they are
Purchase: The purchase ledger shows which purchases have been paid for and which have
not. Buy activities, such as supplier registration maintenance, receiving and processing
purchase invoices, and purchase ledger maintenance, will be handled efficiently by Pia, who
is constantly in the pharmacy.
Payment: Payments are all monetary exchanges between the pharmacy and other parties. Pia
finds it difficult to calculate payments such payroll tax, salary, purchases, and VAT, thus
these tasks should be outsourced.
Reporting: Because books must be closed at the end of each fiscal period and everything
must be correctly validated, this is the most difficult and complex activity to perform, thus it
is ideal to outsource in the cloud environment. Tax authorities may levy large fines for errors
in the reporting procedure.
Question No 6: How to ensure a good fit between the selected system and the work management?
Answer: Determine whether the system is effective first, then connect the work system to the
business and its impact on efficiency. Arrange the job in the system step by step depending on the
user orientation, and important judgments regarding the task must be made. This is owing to the fact
that accounting has several duties and subtasks, which adds to the problem's complexity. Set the task
with the system; integrate them effectively depending on their firm.
Question No 7: What are the transaction cost incurred by the decision?
Answer: The transaction cost is 0.95 Euro (applied to sales, purchase invoices, and monthly wage
payments). Accounting services are estimated to cost €65/hour.
Question No 8: What are long term strategy? Reflect on the implications of your choices in the
Answer: Pie will see the long-term benefits of using a cloud accounting solution when she has more
time. As a result, she will have more time to focus on pharmacy management and strategy
development. As a consequence of the implications of this cloud accounting system, she will be free
of accounting, as she aims to transition to a cloud accounting system since she found herself more
costly and having more time to focus on management and strategy development. If she realizes that
moving to a cloud accounting system does not help her, she can resign.
Asatiani, A., & Penttinen, E. (2015).
Roy Chowdhury, R. (2014, June). Security in Cloud Computing.