Learn a lot Ltd is a small but expanding Leeds based retail company that provides computer based educational facilities and equipment for a range of public and private sector colleges and universities specialising in postgraduate professional IT courses. As a result of a recent increase in demand for the courses offered by universities and colleges, the company is considering expanding its current retail facilities.
The company is seeking to establish a presence in both Hull and York in order to benefit from the high number of undergraduate university students studying IT and computer science related degrees. The company is, however, aware that such an expansion would require not only a substantial capital investment, but also a significant change in the company’s accounting information systems procedures, especially those concerned with the recording of sales income.
Required
As their recently appointed systems accountant, prepare a report for the management of Learn a lot Ltd on the importance for a company like Learn a lot Ltd to possess a cohesive control structure within its accounting information systems and the possible consequences of a failure of such controls.