Gail: Gary, you’re going to have to do a better job of finding me a new computer programmer. That last guy was great at programming, but he had no common sense.

Gary: What do you mean? The guy had a master’s degree with straight A’s.

Gail: Yes, well, last month he developed a new financial reporting system. He said we could do away with manually preparing a worksheet and financial statement. The computer would automatically generate our financial statements with “a push of a button.”

Gary: So what’s the big deal? Sounds to me like it would save you time and effort.

Gail: Right! The balance sheet showed a minus for supplies!

Gary: Minus supplies? How can that be?

Gail: That’s what I asked.

Gary: So, what did he say?

Gail: Well, after he checked the program, he said that it must be right. The minuses were greater than the pluses…

Gary: Didn’t he know that supplies can’t have a credit balance — it must have a debit balance?

Gail: He asked me what a debit and credit were.

Gary: I see your point.

Comment on (a) the desirability of computerizing Flanders Supplies financial reporting system, (b) the elimination of the worksheet in a computerized accounting system, and (c) the computer programmer’s lack of accounting knowledge.

Just do response each # 1 to 3 down below only.

Posted 1

Good morning class,

There are many reasons why Flanders’ financial reporting system should be computerized, e.g., increased efficiency and automaticity, decreased calculation errors, etc. However, eliminating the worksheet is a bad idea. Just as we discussed last week with journal entries, a supplies worksheet is something that cannot be eliminated. Lastly, it’s important to hire a computer programmer who has a background in accounting; having expertise in computer programming isn’t enough. To build a proper accounting system, the programmer should have a rudimentary knowledge of accounting.

Posted 2

Hello Class and Professor,

In an accounting record, recording the supplies is an important factor. Although supplies do not need to be recorded daily a bi weekly or monthly account is required as supplies are an expense. Eliminating the worksheet regardless of it being a computerized accounting system is not a good idea. The worksheet is a step that needs to be taken to minimize the account of errors or fraud. The programmer already does not understand the need for a debit and credit reporting system. If he has no understanding of that then how is this company even sure that their accounts are being recorded properly. Supplies may not be the only mistake. I understand most computer programmers do not obtain much knowledge into anything other than software but, in the importance of accuracy the programmer at least needs enough knowledge of how journaling is conducted.

Posted 3

(a) the desirability of computerizing Flanders Supplies financial reporting system

• So in this scenario I could see how using the program can definitely speed things up for the company. This is a true statement so long as the proper steps were processed in the programming. After all people enjoy using Quickbooks for their accounting needs. Having a system to carefully process entries would minimize the amount of errors that could occur from manual entries and definitely allows for more business to be taken care of freeing up time from data entry.

(b) the elimination of the worksheet in a computerized accounting system

• The elimination of the worksheet in a computerized accounting system seems a bit rushed. If I understand the statement correctly that is. Even though the program could do the data for the company I would imagine there would still be some way to review the worksheet the program would have used for calculations. Verifying the system isn’t bugged or flawed would need to be a priority before elimination of the worksheet. Look at the programming after all. The programmer was going off the premise of income and expense so even though supplies is a positive, the way the programmer set it could easily be seen that yes we have supplies which is positive but I believe in their eyes the expense to acquire supplies was the negative or minus here, being a balance subtracted from our cash or credited if put on account.

(c) the computer programmer’s lack of accounting knowledge.

• The lack of accounting knowledge is solely on Gary in my opinion. Yes they should have asked if they had any experience in accounting but at the same time this is a team. Regardless of hiring someone to do something for you, it is expected that the team would check up on them and their work. Verifying the final resulting program here they came to the conclusion that yea best to do a better job on finding the more ideal candidate. I don’t disagree there but at the same time if they would have worked together on the program they wouldn’t have that error. Tons of people come into job market with degrees barely getting to use so maybe there’s a lack of experience but again its between all of them on the lack of the programmer’s knowledge. Constant checking allows eliminating errors and I know it can also be negative on morale. Newly into a certain field can also cause one to fear seeking help to avoid losing an opportunity. Having the proper knowledge is a must especially for this field so hopefully they would do better the next round.