Riordan Manufacturing Revenue Cycle
Accounting information systems provide the tools to operate and maintain important data related to an organization and interpret the information to develop quality financial reports. The revenue cycle of Riordan Manufacturing reflects sales and the components associated with sales such as inventory, freight, cost of goods sold and accounts receivable, yet this information is not readily available to each facility. Because the forecast for the company is positive and production and wages are expected to increase having source documents available within each branch of the company would improve the efficiency of the organization. Developing a plan to integrate an accounting information system for the …show more content…
Differences in internal processes and AIS structure complicate compliance with government regulation, specifically the 2002 Sarbanes-Oxley Act (SOX). By not using the same internal processes and systems, complying with the responsibilities of SOX section 404 is difficult and costly. These responsibilities include:
• Requires publicly traded companies to issue an “internal control report” that states management is responsible for establishing and maintaining an adequate internal control structure.