Practice Test | CPA 2023. 8. 28.

오전 7:37

I understand that you are interested in learning more about how moving toward a software
package for !xed-asset tracking may be more bene!cial than the current spreadsheet
tracking methodology. Although our !xed-asset accountant has been able to successfully
track !xed-assets transactions and related depreciation accounts, there are de!nite concerns
regarding the sustainability of this process as we continue to grow in size and increase our
!xed-asset inventory.

Under the current process, an accountant is using a spreadsheet for tracking detailed records
relating to !xed assets, accumulated depreciation, and current year depreciation. While
spreadsheets can be very easy to use and can be customized to the individual user, they
present multiple challenges which may be mitigated through the use of a software package.

As we grow larger in size and acquire more !xed assets, it becomes more cumbersome to
keep track of all of the transactions manually on a spreadsheet. The processing speed of a
software package will far exceed the speed of manual entry and accounting, and software can
easily integrate with the other systems the company uses. In addition, it becomes much
easier to reconcile inventories and balances. When we work with our internal audit
department and external auditors, a software package will provide a much cleaner audit trail.

Spreadsheets are always at risk of being lost or corrupted. Errors can be made with
spreadsheet formulas that may not be detected by the user themselves or anyone else using
the !les. Spreadsheets can also be manipulated easily by the end user, with no automated
checks and balances to ensure the accuracy of the numbers. Also, if the accountant
maintaining the spreadsheet leaves that position for even a short period of time, it may be
very di"cult for someone new to pick it up and understand how to utilize it.

As you can see, there are myriad reasons for why moving away from a spreadsheet
methodology and toward a software package may be bene!cial for us in the short and long
run. I am happy to discuss this further if you have any questions or would like any additional
information.

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