Relational Database Case Study

As an accountant, it is critical to say that many of the possible complications that arise in this case are due to feeble project management and monitoring issues. After analyzing your transcript it became visible that an apparent organizational structure ceases to exist. Examining the relationship with your business partner and the staff reaction to this matter, it is recommended that authority should be centralized and responsibilities should be delegated with accountability. Furthermore, direct reporting approach should be taken to ensure decisive information is available in an orderly manner. To take it a step further, it is advisable that formal code of conduct and policy and procedure manual is present to explain proper business practices …show more content…
Failure by the system to provide needed reports to its owner (anomalies in data redundancy), system malfunction by showing no record of bills paid or payable in the system and inability of the system to update, record, delete information pertaining to customers were some of the major concerns faced by the management. The new system worked on the concept of relational databases i.e. data integrity was the key to the success of the database. If not implemented the right way, the consequences of the database would be failure in data integration, data sharing, increased amounts of data redundancies and other anomalies such as a defective system with many data inconsistencies. The new system failed to show records of customer data because of improper linking between foreign keys in the system. A foreign key is an attribute used to link tables in a database. However the new system should have used query databases to retrieve stored data and also made sure that it followed the referential integrity rule; thereby, ensuring data …show more content…
* Testing functionality of the system before turning off the old system * Training employees with proper equipment in place which could have led to avoiding time loss, loss in profits and other legal complications.
The new implemented accounting information system is only as good as the information entered into the database as per company requirements. While the primary purpose of the new system was to reduce time and money, the implementation of the new system, however ended up in an avoidable lapse in judgment by the management and the employees. All financial transactions have three main requirements to ensure proper accounting of business operations: timeliness, accuracy, and validity. If these transactions failed to meet these guidelines, information entered into the software* will lead to improperly prepared reports and a total system failure.
Many companies, irrespective of their nature, follow strict guidelines that help in proper implementation of an AIS, stated below, thus proving the method followed by Bodgett & Panik LLP was insufficient and inadequate towards the success of the