Step 3. Accounting And Reporting Systems, Controls And Compliance
C5. Financial systems, procedures and related IT applications
a) Identify an organisation’s system requirements in relation to the objectives and policies of the organisation
b) Describe the main financial systems used within an organisation:
i) Purchases and sales invoicing
iii) Credit control
iv) Cash and working capital management.
c) Explain why it is important to adhere to policies and procedures for handling clients’ money.
d) Identify weaknesses, potential for error and inefficiencies in accounting systems.
e) Recommend improvements to accounting systems to prevent error and fraud and to improve overall efficiency
f) Explain why appropriate controls are necessary in relation to business and IT systems and procedures.
g) Identify business uses of computers and IT software applications:
i) Spreadsheet applications ii) Database systems iii) Accounting packages
h) Describe and compare the relative benefits and limitations of manual and automated financial systems that may be used in an organisation