1. Why must an organization expect the implementation of an ERP to disrupt operations?

It is because despite the benefits an organization could get from using ERP, there is also a risk that could
disrupt operations. Disrupt operations can be due to cultural problems which leads opposition to
changes in business culture. It is where being unfamiliar with the new computer technology and lack of
technical support become a hindrance for the employees to accept the new system since they are
already proficient in using the old once.

Choosing the wrong ERP and wrong consultant could be the reason as well, that is why the management
needs to really assess and conform to a reliable and skilled consultant who can identify the needs of the
company to develop a specification for ERP enable for them to make sure that the ERP they choose is
right for the company.

In addition, high cost and cost over runs could disrupt operations too since ERP are undeniably costly.
The risk there is when there is underestimated and unanticipated costs. Therefore, knowing all of these
possible risk is important so that the management could be more careful and prepared so that
disruptions to operations could be avoided.

2. List in order, the steps in the Financial Accounting Process

1. Capture the transaction

2. Record in special journal

3. Post to subsidiary ledger

4. Post to general ledger

5. Prepare the unadjusted trial balance

6. Make adjusting entries

7. Journalize and post adjusting entries

8. Prepare the adjusted trial balance

9. Prepare the financial statements

10. Journalize and post the closing entries

11. Prepare the post-closing trial balance.

3. Why is the audit trail necessary

Audit trail is necessary because it helps the company to detect errors or fraud since in an audit trail trace
the path of every transaction from initiation until it came to its final disposition and for this reason audit
trail could be used enable to verify and validate the accuracy of many transactions.

In addition, Audit trail could also have the ability to answer inquiries, reconstruct accounting records
when there is an instance where in company's files had been destroyed and fulfill government
regulations.

Therefore, Audit trail if well managed, It could be one of the indicator of a good internal control as it
would trace and prevent errors and anomalies.

4. Discuss an area of concern related to e-commerce.

First area of concern is the data security since an electronic commercial occur via the Internet there
could be a risk to theft or destruction of data example of this is the intranet risk. Intranet risk can occur
when there employee who has intimate knowledge of system controls get the trade secrets or
accounting data and use it for unauthorized or illegal activities. Second is the concern for privacy such as
consumer privacy and transaction security. Given the fact that many people are connected to the web
many kind of fraud may occur. For example theft of credit card numbers and theft of password.

Third and last concern is about business policy and business process integrity because even the business
entities are at risk from e-commerce due to IP Spoofing. IP spoofing happens when a perpetrator
modifies the IP address and use this IP modified IP address to make a message that seems to be coming
from an authorized source. Aside form that there is could also be a denial of service attack preventing
the company to serve its legitimate users and malicious programs such as worms, Trojan horses and
many more. All of this could have an effects on the integrity. of the company.

In conclusion, These areas of concerns should be address. The company must build a security, assurance
and trust so that consumers and business partners are assured that adequate safeguards are place.

5. What are the major exposures in the general ledger/financial reporting system?

There are four major exposure or potential risk to the FRS and these are a defective audit trail,
unauthorized access to the general ledger, GL accounts that are out of balance with subsidiary account,
incorrect GL account balances because unauthorized or incorrect journal vouchers.

These exposures need to be controlled because If not it this may lead to wrong decisions due to
misstated financial statements. It will increase the risk to financial loss like theft or destruction of assets,
corruption and disruption of information system as well.

In conclusion, there should be an effective internal control because it will serve as a shield to prevent
exposures which may lead to undesirable events.

6. Define risk in an electronic commerce setting.

Risk refers to the possible undesirable events that might occur, given the fact that electronic commerce
has a lot of exposures when it comes to the concern regarding privacy and security.

Risk could also be the possibility of loss or injuries since in an e-commerce and it operate via the internet
malicious softwares like worms, Trojan horses and other threats are rampant, as well as the risk about IP
spoofing where in perpetrator modifies IP address enable to commit fraud or a denial servive attact
which could prevent the company in servicing its legitimate client.

In conclusion, uncertainty is part of any business and so the risk, but it is very important to identify the
risk enable for the company to create an appropriate action enable to reduce or eliminate it.

7. How are OLTP and OLAP different? Explain and cite uses of OLTP & OLAP.

OLTP applications are mission-critical task meaning it is specialized for simple queries of operation
databases only as it support the day to day activities of the businesss. On the other hand, OLAP
applications support management-critical task because it access very large amounts of data came from
data warehouses which involve complex calculations but must give a quick or real time information to
users request so that they can pursue an analytical thought process enable to create timely and
appropriate decisions. It includes consolidation, drill down and slicing and dicing.

OLTP can be use in online banking, online airline ticket booking, sending a text message, ATM center
because it is application oriented and used for business task while OLAP can be use when comparing
sales or analyzing purchases of the customers which will help them on what to they could insert product
at the homepage in accordance with the preference of the costumer examaple of it are Amazon, Lazada
or Shopee.

In conclusion, in an organization which has lots of data, it needs to be organized and analyze enable to
make appropriate action or decision and even though OLAP and OLTP have lots of differences. It is
undeniably that both of it plays a crucial role regarding data.

8. When considering an Internet commerce, what security questions must be asked? Why?

Security question is a method of identity authentication where in the shared secret used as an
unthenticator. This is an extra security which is essential especially for Internet commerce where in
security and privacy are something in concern. It is mostly used for password recovery.
The security questions might be "what is the first concert you attended?" or "In what city did your
parents meet" or "What city were you born in?" because this are the questions which are difficult to
guess but have a certain and constant answer, meaning that the answer isn't prone to change.

In conclusion, security questions could be an extra security but it is very important that any company
who are into electronic commerce must not rely on it solely because company must have a strong and
adequate safeguards.

9. ERP implementations are at risk to extensive cost overruns. Why?

(10 Points)

Implementation of ERP involves huge costs, since it includes cost relating to consulting services, internal
personnel costs, installation and upgrades as well as trainings, system testing and integration, and
database conversion aside from the price of ERP system itself.

The risk in an ERP implementation is when there's underestimated or unanticipated costs, given the fact
that in every uncertainty there is a risk and which may lead to rewards or losses.

In conclusion, the management really need to assess whether the benefits of the ERP they implemented
outweigh the cost of it enable to minimize the risk of undesirable events.