HA2042 Accounting Information Systems (T1, 2012)Group Assignment (20% of Final Mark)The assignment has two parts namely Part 1 (10 marks) & 2 (10 marks). Part 1 will require youto evaluate the payroll system for the Skip-Rope Manufacturing Company. Part 2 will involve acompany called Kowal Manufacturing Company in which you are required to identify theweaknesses in their current system among others. The two (2) cases are selected form youtextbook, Accounting Information Systems 12th edition by M.B. Romney and P.J. Steinbart.The assignment aims to develop the student’s understanding of an information system in the areaof Human Resources Management and Payroll Cycle. The task also aims for the student to beable to analyse a case and identify the threats and weaknesses and give correspondingrecommendations. This group project itself includes several assignments, each of whichcomprises a part of the students’ task. However, it is well encouraged to include any additionalinformation that students may think will be useful in conducting financial statements analysis ofthe selected company.General Rules and Requirements:The report should be prepared by a small group (with a maximum of three members) with thecontribution of each member specified on the report’s title page. Reports must be confined to2,000 words (+/- 5%). As a minimum, a title page, table of contents page (based on your reportheadings), introduction, conclusion and references should be included. Font type should be Arial(size 11), paragraph spacing should be 1.5.Note: Any additional material from external sources that you “copy and paste” into your report isNOT included in the word limit. Also, ensure it is appropriately referenced.Part 1 (5 marks)Chapter 15Skip-Rope manufacturing (page 475)Part 2 (15 marks)Chapter 15Kowal Manufacturing Company (page 475)Required:a. Identify weaknesses in current procedures, and explain the threats that they may allow tooccur.b. Suggest ways to improve the Kowal Manufacturing Company’s internal control overhiring and payroll processing. (CPA examination, adapted.)