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Evaluating the AIS of Jawad Business Group


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Table of Contents
Abstract............................................................................................................................................3
Objectives of the Report..................................................................................................................4
Background of the Company...........................................................................................................5
Accounting Information System......................................................................................................6
System Objectives of Particular AIS...........................................................................................6
Data Flow Diagram......................................................................................................................8
Flow Chart...................................................................................................................................9
Components of Used AIS..............................................................................................................10
Business Cycle of Jawad Business Group.....................................................................................11
Revenue Cycle...........................................................................................................................11
Investing Cycle..........................................................................................................................12
Financial and Expenditure Cycle...............................................................................................12
Human Resource Cycle.............................................................................................................14
Strengths and Weaknesses of the AIS............................................................................................16
Recommendations and Conclusion................................................................................................17
References......................................................................................................................................18

Abstract
Jawad Business Group is one of the largest groups of companies based in Bahrain. The
organizational management has developed and implemented some unique strategies in business
operation process to become a successful organization in Middle East. The accounting
department of the organizational management uses oracle as an accounting information system
database management application. This particular application has several advantages as well as
disadvantages. Time effectiveness, speed, and efficiency are some major advantages of this tool.
On the other hand, the organizational management of Jawad Business Group is suffering data
security and information privacy related issues that may hamper the transparency and ethics of
accounting information system. It is highly important to use advanced and current version in
order to enhance effective and significant corporate governance. Moreover, the organizational
management should also give value to stakeholders to ensure positive business growth rate.

Objectives of the Report


The objective of this particular report is to discuss different aspects of the accounting
information system of Jawad Business Group. It is highly important for an organization to follow
certain rules and regulations in order to manage, lead and organise the resources of a particular
organization quite successfully. It is also important for an organisation to maintain an effective
internal control over each and every organizational system in order to evaluate and monitor the
effectiveness of the particular system. Accounting information system can be considered as such
particular system that helps to control and monitor the effectiveness of the accounting system of
a particular firm. Accounting information system can be defined as a particular information
system that used to source, collect, store, record, process, and interpret accounting data and
information for the strategy developers.
The accounting department within an organization is highly responsible to ensure effective and
transparent accounting activities and functions. However, accounting information system
generally helps an organization to design and support all the important accounting information
and functions, such as financial accounting, auditing, reporting, tax management, and managerial
accounting. It is also important to discuss that effective adoption and implementation of
accounting information system may help an organization to ensure that the financial reports are
developed on timely basis. This particular aspect can help the strategy developers and decision
makers to act efficiently and ensure effective output.
The major objective of this particular report is to determine and identify the important functions
of accounting information system of Jawad Business Group. However, there are three important
general functions of accounting information system. First of all, it helps the accounting

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department to source and collect important data and information. Secondly, it helps to sort the
most vital data for the management of the accounting department. Thirdly, it helps the
organization to ensure effective and significant control over the data management process in
order to enhance high quality output and result.
Background of the Company
The Jawed Business Group is one of the reputed, popular, and largest organizations across
Middle East based in Bahrain. The organization started its business operation journey almost 50
years ago. Previously, the organizational management of Jawad Business Group focused on the
distribution of FMCG goods across Middle East focusing on the growing demand for the FMCG
products. Slowly and gradually, the organizational management and leaders focused on effective
and unique strategy development and decision making process. It is highly important to mention
that the organizational leaders and top level management of Jawad Business Group always
focused on effective and significant business diversification and business differentiation
strategies.
Today the organizational management has succeeded to develop effective and diversified
business units across the Middle East due to the adoption and implementation of effective
strategies in business operation process. Now, the organization is a strong brand name in apparel,
footwear, fashion, FMCG, and restaurant industry (Jawad, 2016, p.1). The organizational
management highly focuses on stakeholder engagement and stakeholder value aspect. Moreover,
the top level management and the organizational leaders of Jawad Business Group are highly
responsible for maintaining high quality aspects of the products and customer service. Most
importantly, it is highly important for the organization to focus on market share growth and
customer base development process. However, the organizational management has significantly

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focused on these aspects by ensuring ethical stakeholder engagement process. Most importantly,
it is essential to mention that the organizational leaders have ensured a 24*7 customer service
team in order to assist the customers regarding any quarry. Moreover, it is also important to
mention that the organization has developed different outlets under the umbrella brand
throughout the countrys popular shopping malls and metro cities.
Accounting Information System
It is highly important to mention that different organizations used to consider different types of
accounting information system development and implementation process. Some organizations
focus on technologically advanced process and some organizations used to focus on the manual
process. However, the organizational management of Jawad Business Group used to implement
advanced and computerised technological advanced accounting information system in order to
maintain efficiency in the accounting data management system as this technologically advanced
process is time as well as cost effective (Amari, 2004, p.128). Moreover, this particular aspect
has the facility to create an effective backup of the required data and information within the
software folder.
System Objectives of Particular AIS
The organizational management of Jawad Business Group uses Oracle DBMS architecture. This
particular database management application can be considered as technologically advanced
application. The system objective of the particular developed AIS is to bring efficiency in the
database management process.
Moreover, one of the major objectives of the AIS is to collect large number of data within a short
time frame. Moreover, this particular database management application has the ability to store a

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large amount of data as an entire unit. The major purpose of this particular database management
application is to prevent the unethical access (Clarke, 2016, p.81). Moreover, this accounting
information system management application generally helps in the offering of effective solutions
to some critical problems, such as failure recovery that may fulfil the system objectives of the
organization.
The organizational management of Jawad Business Group has adopted and implemented this
particular accounting information system approach due to several reasons. First of all, it is both
time and cost effective. On the other hand, its major aim is to help in the gathering, sourcing,
collecting, storing, and recording of large number of data as a unit. Now-a-days, data privacy and
information ethics have become two important aspects. Oracle database management application
has the ability to prevent unauthorised access. Therefore, it will play an important role in the
maintaining high quality privacy aspects of the data and information security management
process of the users (Basu, 2012, p.73). On the other hand, this accounting information systems
objective is to help the management of Jawad Business Group to reduce the workload of
employees quite significantly. Previously, the organizational management had to bother about
long working days for the data management process in accounting system. Currently, the
installation of this Oracle database management process is helping the organizational
management of Jawad Business Group to take care of these things.
The oracle database architecture has two structures, such as physical structure and logical
structure. These two structures are generally separated to each other. Therefore, one particular
structure cannot affect another structure in this particular system. It is highly important to
mention that effective and significant efficient workflow of this particular database management

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application has eased the pressure of the employees within the accounting department of Jawad
Business Group.
There are other several important objectives of this accounting information system that can help
Jawad Business group to maintain effective business growth rate. First of all, its objective is to
secure the details and information of an individual associated with the organization. The oracle
database management system applications are responsible to secure the transaction process
between company and clients. On the other hand, it will intend to take care of the privacy aspect
of the clients banking and financial information.
Data Flow Diagram
Following is the Data Flow diagram of Jawad Business Groups customer payment process.

The operation managers of the organization significantly use DFD in the data management
system in order to ensure effective data as well as information documentation process. The

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operation managers and the professionals generally focus on the implementation of accounting
and financial process. The management generally uses advanced oracle software version to
document the data flow in the payment receive and bank deposit concept.
Flow Chart
Following is the documentation flowchart of Jawed Business Group.

It is clear from the above diagram that the organizational management has significantly focused
on the internal control flow chart in which the organizational management along with the
operation professionals have strongly focused on the adequacy of important internal controls,

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such as payroll system of employees, accounting records, and human resource functional
updating. ^The organizational management has adopted and installed advanced oracle database
management system to develop an adequate internal control flowchart.
Components of Used AIS
Six components are used in the AIS development process of Jawad Group, such as data, software
programmes, experts, IT infrastructure, instructions and procedures, and controls to protect data
and assets.
In terms of data or source of documents, Jawad Business Group generally considers purchase
orders in order to collect data and information accounting information in an efficient and time
effective process. The use of oracle generally helps both accounting and receiving department to
focus on system generated source of documents in order to ensure collection and analysis of data.
Oracle DBMS structure has been applied by the organizational management of Jawad Business
Group in order to ensure effective and significant payroll system for the employees. Apart from
this, advanced information communication technology software has been adopted and
implemented by supply chain management team to bring efficiency in the inventory management
process of the retail business group.
Accounting department, IT Department, as well as operation department of the organization used
to handle the AIS of the company. The accounting and operation department take care of the
application of AIS. On the other hand, IT department focuses on the controlling and monitoring
of the AIS.

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In terms of IT infrastructure, the management of Jawad Business group has installed advanced
ICT software and PDA service along with the Oracle DBMS structure in order to enhance
effective accounting information system.
Oracle is the used DBMS architecture in the AIS. The organizational management generally
focuses on efficiency, cost-effectiveness, time-effectiveness, and automation. Most importantly,
the operational as well as accounting management sued to focus on the vendor documentation
system to maintain ethics and transparency in data processing aspect.
The organizational management uses advanced Oracle DBMS architecture. The organization has
outsourced this application as it is secured and trustworthy. However, still there are some
challenges may faced by data operators as it is not fully secured option according to some
critiques. Therefore, it is important to take care of the security issues.
Business Cycle of Jawad Business Group
Accounting information system generally plays an important role in business profitability and
business operation sustainability of an organization. It is highly important to discuss that several
organizations need to ensure effective business cycle in order to evaluate individual accounting
information system in an effective and significant way. The business cycle of Jawad Business
Group is being discussed below.
Revenue Cycle
Revenue cycle can be considered as an important aspect of the business cycle of a particular
organization. It is true that revenue cycle generally represents the cycle of some activities in the
business operation process that considers the exchange of services and products between
customers and organizations by cash payment.

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It has been discussed earlier that the organization has developed differentiated business units.
Most importantly, the organization has a strong presence in the Middle East restaurant, fashion,
and apparel, clothing, and FMCG industry. The organization has accounting department for each
and every business unit. Most importantly, all the units participate in the decision making and
business evaluation process. In this particular process, the total generated revenue is being
calculated.
Investing Cycle
Investment cycle can be considered as one of the major business cycles for Jawad Business
Group. It is discussed that the organizational management has to deal with different business
units as the organizational management has a strong presence in different industries, such s
apparel industry, restaurant industry, fashion industry, footwear industry and FMCG industry.
It is also important to mention that the organizational management has succeeded to gain huge
shareholder support. The organizational management influence the shareholders to buy the share
of the organization. Moreover, it is also important to mention that the organizational leaders also
focus on effective investment from other associated companies to enhance profitability and take
care of the demand of target customers.
Financial and Expenditure Cycle
The financial management of Jawad Business Group generally uses technologically advanced
and significant financial data management software application. This particular software
application generally helps the financial management department to request the business units
regarding the invoices and other services. In an addition, this particular software application is
also useful in the accurate and transparent invoice development process within quick time period.

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Apart from all the things, the organizational management also has to focus on the investment in
the supply chain networking and distributing activities. This particular organizational
management cycle generally takes care of all the recording regarding the investment activities
quite significantly.
However, the financial cycle of Jawad Business Group involves the interaction between the
creditors and investors. In an addition, it is also important to mention that effective and
significant issuing of shares is considered by the financial management of the company. The
financial cycle of Jawad Business Group is well structured as the organizational management has
the stakeholder support and stakeholder engagement process (Collard, 2009, p.82).
On the other hand, the expenditure cycle of Jawad Business Group can be considered as a bunch
of data processing and business operation activities that is related to the consumption and
payment of the products as well as services. The organizational management of Jawad Business
Group has to consider three important expenses in the expenditure cycle. These three expense
elements are compensation expense, insurance expense, and supplier expense.
Compensation expense can be considered as the most important aspect in the expenditure cycle
of Jawad Business Group. The organization is group of several brand and companies. Therefore,
the organizational management has to cover compensation of numerous employees as it is
considered as one of the largest employers in Middle East. The organizational management of
Jawad Business Group always focus on good talent hunt and recruitment process. Moreover, the
organizational management of Jawad Business Group also focuses on appropriate number of
employees for a particular job (Hinnebusch, 2013, p.48). Apart from this, the organizational
management used to focus on the technologically advanced applications and instruments in the

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workplace to minimize number of employees for a particular position. This aspect has helped the
organizational management of Jawad Business Group to ensure a sustainable and controlled
compensation expenditure cycle.
It is also important to mention that the organizational management used to focus on effective and
significant supplier expense in order to maintain the sustainability in the overall expenditure
cycle.

The organizational management has developed own supply chain network. Most

importantly, the organizational management has focused on decentralization as it has helped in


sustainable strategy development and decision making process. Effective and important
decentralization has influenced the suppliers to send the generated invoice through the developed
system to the accounting department.
In terms of insurance expenses, the organizational management of Jawad Business Group always
ensures medical insurance to all the employees. In an addition, it is also important to mention
that the organizational leaders provide the insurance money to the family members of employees
in case of workplace hazard.
Human Resource Cycle
In terms of human resource cycle, the human resource department of Jawad Business Group
generally takes care of the interaction between employees and human resource professionals. In
this cycle, the human resource professionals of Jawad Business Group are responsible for hiring,
training, performance evaluation, training, promotion, compensation distribution, and
termination of employees.
The organizational management of Jawad Business Group is responsible for recording time,
efficiency, and over-time works of the employees. Moreover, the organizational management

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also has introduced an effective motivational tool name overtime rewards. This particular aspect
has influenced each and every employee to work more than standardise working hour. Most
importantly, it has helped the organizational management to focus on effective and significant
workplace performance (Allen, 2012, p.149). On the other hand, it also has helped the
organizational management to ensure the improvement of motivation as well as performance
level of the employees.
However, the human resource cycle of Jawad Business Group consists of four different activities,
such as recruitment and selection, career planning, career development, and promotion or
termination.
The organizational management of Jawad Business Group focuses on different types of
recruitment and selection activities, such as referral interview, job advertisements, group
discussion, face to face interview process, selection process, sorting of skilled and
knowledgeable employees, and successful induction for the selected employees.
After the recruitment and selection process, the human resource professionals of Jawad Business
Group are highly responsible for guiding the employees to effective orientation and career
development aspect. In this process, the employees take training from the managers regarding
collaborative workplace performance, group dynamics, management process, leadership
implications, and effective employee management as well as performance management process
(Peterson, 2016, p.61). These approaches can help the organizational management to ensure
effective career planning and development process.
Last but not the least; the human resource professionals of Jawad Business Group are highly
responsible in the effective and significant appraisal of the performance of employees. It is the

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guideline developed by organizational management that the employees need to have integrity
and ethics and they have to follow the training programmes seriously. The managers and leaders
have the right to promote or terminate the employees based on their performance level and
workplace behaviour.
Strengths and Weaknesses of the AIS
It is clear from the above discussion that the accounting department of Jawad Business Group
generally uses oracle database management application process as the leading accounting
information management process. There are several advantages as well as limitations of this
database management application that are discussed below.
In terms of strengths and advantages, it is essential to mention that oracle database management
system can deal with numerous data sets within quick time period. In an addition, it is also
important to discuss that the application follow a flexible rule that helps the accounting
department of Jawad Business Group to enhance the audit and internal control aspect. In an
addition, oracle database management applications help the accounting department of the
organization to bring efficiency and pace in the monthly close system (Hertog, 2013, p.46). In an
addition, it also helps the accounting department of Jawad Business Group to meet the deadline
for each and every accounting activity.
There are several limitations of the use of this particular database management tool. First of all, it
is not that much reliable and secured. It is true that the company has promised that it is highly
secured, but in some cases data leakage and information theft related challenges affected the data
management process (Smith, 2016, p.57).

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Recommendations and Conclusion
It is clear from the above mention facts and aspects that the organizational management of Jawad
Business Group has used oracle software application for the sourcing, collecting, recording,
storing, evaluating, and interpretation the accounting information and data. However, it is clear
from the facts that the organization may face challenges as Oracle is not 100 percent secure due
to some information privacy related issues. This limitation can hamper the ethics, transparency,
and corporate governance of business operation process of Jawad Business Group. Following
recommendation plans will help the organizational leaders of accoutring department of Jawad
Business Group to overcome the associated challenges.
First of all, it is highly important for the accounting department to use more advanced version of
database management software application as it will help the organizational management to
protect the confidential information and data significantly.
Secondly, it is highly important for the organizational leaders to ensure effective and significant
evaluation and monitoring of the functioning of the database management application process.
Inadequate review and evaluation can cause poor accounting information system that may
hamper profitability, stakeholder support, and corporate governance aspect.
Last but not the least; it is highly important for the organizational leaders of Jawad Business
Group to ensure effective stakeholder engagement in strategy development process as it will help
to maintain transparency and ethics in overall accounting information system of Jawad Business
Group.

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References
Allen, L. S., 2012. Financial Risk Management. Stamford: Cengage Learning.
Amari, R., 2004. Global Accounting Standards. Munich: GRIN Verlag.
Basu, K., 2015. Business Accounting Information. London: IGI.
Clarke, O., 2016. Banking World. New York: McGraw-Hill.
Collard, E., 2009. Middle-east Economic Digest. New Jersey: Pearson.
Hertog, S., 2013. Business in the Middle East. New York: Springer.
Hinnebusch, R., 2013. International Finance. London: Routledge.
Jawad., 2016. Our Storey: History. [Online]. Available at: < http://www.jawad.com/about>.
[Accessed on December 6, 2016].
Peterson, M., 2016. The Gulf Directory. London: Sage.
Smith, M., 2016. Middle East Economic Environment. London: Routledge.

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