QUESTION 1

a. Discuss FOUR (4) weaknesses (with explanations) and recommendations based on

the content of the electronic data entry form depicted in the Figure shown above.

(16 MARKS)

Weakness Explanation Recommendation(s)

No fields to record a NEAT cannot specify and The form should have fields for this information.
new customer’s name contact/visit the customer via
and postal address. postal address without this
data.

The form is not pre- There is no way to ensure that The form should have a preprinted number, most
numbered. all maintenance forms are appropriate in the upper right or left corner.
processed and accounted for.

No indication that The person entering the data The report should have a space to record the initials of the
information has been does not initial the form after person entering the data and the date it is entered.
entered into the the data is entered into the
computer system. system. A form may be
missed or entered twice.

There is no space The company would not know An effective change date should be added to this report. If
provided for recording the effective date of the the effective change date can be different from the date
date the form is change nor when the form was the form is created, a field for that date
created (or the created. should also be included.
effective date of the
change).

The form does not The data entry clerk would not A place should be provided for the authorized person to
have a place where know whether the customer sign or initial it. 
the authorized person information has been approved
eg, credit and authorized by the
manager/sales manager.
manager can sign or
initial.

16 x 1 marks = 16 MARKS
(OR ANY ACCEPTABLE / RELEVANT
ANSWERS)
b. Although electronic data entry can be superior to manual data entry, which can be
time consuming and result in a high number of errors, electronic data entry has its
own (3)
limitations. Discuss the THREE challenges that NEAT Bhd will face in
implementing electronic data entry as the input medium.
(9 MARKS)
1. Expensive - In comparison to manual data entry, the setup and maintenance of
some of the formats of electronic data entry (EDE) is expensive.
2. Initial setup is time consuming - Initial setup to setup EDE is time consuming.
3. System electronic protection - An EDE needs electronic protection from viruses,
hacking, malware, and other frauds.
4. Proper backup should be maintained. In case of any crash of the information
system, proper backup must be maintained and extra cost is required for it.

(Any 3 points with explanation x 3 marks) = 9

MARKS)

Total: 25 marks

QUESTION 2
A

a. Discuss how XBRL affects financial information reporting from the perspective of TWO
(2) different types of stakeholders.
(6 marks)

1. Investors and analysts

Investors and analysts must convert financial data reported by businesses into
customized formats that can be used for further analysis. This method is not
only time-consuming, but it is also the least standardized and automated link in
the entire capital markets value chain.
Investors and analysts get benefits from XBRL because it provides near real-
time access to business intelligence, enabling them to track the financial
health of companies in which they have an interest at any time and from any
place.
As a result, XBRL has the ability to democratize capital markets by making
timely, appropriate, reliable, and full data accessible to everybody at the
same time for immediate use.

2. Regulators
As a result of the standardized taxonomy used in XBRL reporting, regulatory
authorities can easily and automatically verify the level of compliance of
companies in reporting. It is also in favour of upholding the country's reporting
environment's integrity.
Furthermore, XBRL enables regulators to collect necessary filings through the
internet, reducing bureaucracy and administrative and maintenance costs.
It also improves regulators' ability to minimize diversity and add uniformity to
the reporting system around the world.
It also allows for high-speed data collection via the internet and high
accuracy to make timely economic decisions. In the country's economic
climate, XBRL also aids in the creation of a similar international reporting
standard.
 3. anagers
Individual companies are likely to use XBRL to streamline their internal financial
and organizational reporting processes, which may be the largest group of
XBRL users.
Managers may use XBRL to create simple financial data once and distribute it
in a variety of formats for internal management and external reporting.
Reduced information processing time and errors are likely to be among the
advantages, potentially contributing to more timely reporting and decision-
making.

4. Accountants and other users

In addition to simple reporting, XBRL provides a computing platform that allows
accountants and auditors to provide consulting and value-added services to
their clients. As a result, they are positioned as company consultants.
Furthermore, XBRL enables these parties to communicate with other bodies
more effectively on behalf of their clients, while also increasing
accountability and transparency. There will be fewer errors of omission
and commission as a result of XBRL's elimination of manual data transfer,
resulting in higher- quality services and reports.
Furthermore, the computing infrastructure provided by XBRL would make
custom reporting much easier, which would otherwise be time-consuming
and resource-intensive. These advantages result in additional revenue for
accountants and auditors, as well as better value for their clients.

(Any 2 users x 1 mark = 2

marks) (Any 2 x 2 marks for the explanations =
4 marks)
Total = 6
marks

b. Explain THREE (3) challenges to XBRL adoption in

Malaysia. (9 marks)

1. Lack of awareness and knowledge.

The first challenge is a lack of awareness among those involved in the reporting
and communication of business and financial information, such as professional
accountants and auditors. Furthermore, the lack of knowledge of professional
accountants or other relevant stakeholders does not only affect small
businesses, but also large corporations. As a result, regulatory authorities who
insist on mandating XBRL reporting face a significant challenge in raising
awareness among these people.
Furthermore, this condition represents a lack of technological expertise.
Additionally, people who are familiar with XBRL are often found in the service
industries. Individuals' interpretation of XBRL and its implementation
implications are reflected in their workplaces.

2. Lack of XBRL training and skills.

For the new advanced technology to work and for implementers to benefit from
it, individuals must first learn how to use it. The same is true for XBRL; working
 with this new financial system requires highly trained employees or accountants
to prepare and publicize reports.
This means that professionals must learn new skills to work within the new
digital paradigm and comprehend the computer engineering tasks that must be
completed. As a result, one of the major challenges for both regulatory
authorities and businesses is providing platforms for them to improve their skills
and knowledge.

3. Complicated Taxonomy in XBRL.

The third challenge in implementing XBRL is taxonomy reliability, which is
important in reporting standardization. To ensure taxonomy fluidity, coordination
across the supply chain is required, including regulatory authorities,
accountants and auditors, technical teams, XBRL software vendors and trained
staff, and others involved in the preparation process. It should be noted that
separate taxonomies are required for each sector, such as manufacturing,
services, banking, insurance, and so on. This is because the taxonomies must
be consistent with the nature of the business.
Furthermore, because it is critical to report both financial and non-financial
information following IFRS requirements, regulatory authorities face a
significant challenge in providing an XBRL taxonomy that can accommodate
both in a single annual report. In these circumstances, taxonomy is regarded as
one of the most critical challenges to successful XBRL implementation in
Malaysia.

4. Difficulties in setting the consistency of reporting software and

compatible format.
Other challenges include the fact that each industry has its reporting tools, so
financial reporting technology must be standardized across industries in terms
of compliance, accounting, and auditing. Furthermore, in terms of format, it is
vital to adopt the XBRL format, which is consistent with the in-line XBRL
international setting.

5. Time and effort are needed to learn about XBRL.

6. Lack of available software for displaying XBRL documents and analyzing them.

7. Lack of need for using XBRL (i.e. no demand).

8. Less alternative software systems/packages exist to perform the same

functions as XBRL.

9. Cost of XBRL software.

(Any 3 challengers with explanation x 3 marks = 9 marks)

(OR ANY ACCEPTABLE / RELEVANT ANSWERS)
B

a. You are required to prepare the Post Implementation Review Report to the
management of Shoemaker Sdn Bhd. Discuss on the THREE (3) key components
that should be included in the report. (Your explanation should be in the context of the
above case)
(6 marks)

1. Degree to which Inventory Tracking System (ITS) objectives were met –

Describe how well the ITS help the organization meet its goals, objectives, and
overall mission and how well the project resolved Shoemaker Sdn Bhd
problems and needs.
2. Analysis of actual versus expected costs and benefits - Describe how well ITS
has benefited users and whether the expected benefits were achieved. Are
actual costs in line with expected costs?
3. Reactions and satisfaction from ITS users – Describe whether the ITS providing
users the needed functionality and performance, is actual performance
consistent with user or user expectations, what would they like changed or
improved?
4. Recommendations for improving the new ITS - Justify if the ITS should continue
in operation as is, be enhanced, or terminated
5. Recommendations for improving the systems development process - Identify
recommended improvements to correct similar problems in the future

See detail for table of contents for PIR provided in Table 24-8 on page 797 and Table
24-7 on page 796.
(Any 3 key components with explanation x 2 marks = 6
marks) (Students are expected to answer in the context of the case; if they
give general Commented [K3]: change to 1
answers, 1 mark will be deducted for each
component) (OR ANY ACCEPTABLE /
RELEVANT ANSWERS)

b. According to management, the project is finished once the Postimplementation

Review Report is submitted. Justify to management why the “go live” of the Inventory
Tracking System does not signify the completion of the Inventory Tracking System
project.
(4 marks)
User acceptance of the post-implementation review report is the final activity in the
systems development process. However, it does not mark the completion of Inventory
Tracking System project the maintenance is the ongoing activity .

Maintenance considered as an important phase because it allows the Inventory

Tracking system to produce the expected result via the monitoring process .
Maintenance also involves making revisions and additions to the system that might
require modification in some way .

The maintenance also required to correct errors in the software that were not
discovered and corrected during the testing process . This is because a large
number of bugs in the new system elude the testing process and require
sometimes to be discovered and removed especially for the complex system .
Any 4 points  x 1 marks = 4 MARKS
(OR ANY ACCEPTABLE / RELEVANT
ANSWERS)