| Course | MAT 201 Principles of Accounting II |
|---|---|
| Module | Module 8 |
| Paper type | Automated systems and controls paper |
| Length | About 1,007 words, 6 pages |
| Format | APA 7 student paper |
| School | Aspen University |
| Program | Business Administration |
| Updated | October 2026 |
Free sample paper for MAT 201 Module 8
One System for Orders, Plant and Books: Automating a Creamery's Accounting Without Losing Control
Student Name
Business Administration Program, Aspen University
MAT 201: Principles of Accounting II
Instructor Name
Month Day, Year
One System for Orders, Plant and Books: Automating a Creamery's Accounting Without Losing Control
Cedar Valley Creamery's systems grew one piece at a time. Its accounting runs on small-business software chosen when it was a family partnership. Customer orders are entered in a separate program the sales team prefers. Production, waste and milk receipts are tracked in three spreadsheets kept by plant supervisors. The controller's staff rekey figures from the order system and spreadsheets into accounting, and the weekly plant cost report designed in Module 5 takes two days to assemble. The board has approved about $260,000 for an integrated enterprise system. This paper explains what will change and the controls the new system must enforce.
What Integration Changes
An integrated enterprise system uses one database for orders, purchasing, production, inventory and accounting. When a grocery order is entered, the system checks inventory, schedules production and, when the order ships, records the sale and cost of goods sold automatically. When milk arrives, the receipt updates inventory and the amount owed to the cooperative. Data entered once flows to every function. That removes rekeying errors and delays, but it also means an error entered at the start spreads everywhere at once.
What Adopters Experienced
Hunton et al. (2003) compared the financial performance of firms that adopted enterprise resource planning systems with matched firms that did not, over the three years after adoption. Adopters' performance measures held steady while nonadopters' declined, so adopters did better in relative terms, though not because their own performance jumped. The finding suggests realistic expectations: the system may help Cedar Valley keep pace as it grows, not transform its results overnight.
Controls the System Must Enforce
| Control | How the system enforces it | Risk it addresses |
|---|---|---|
| Role-based access | Each user sees and changes only what the role requires | Unauthorized changes |
| Segregation of duties | The person who enters a payment cannot approve it | Fraudulent payments |
| Three-way match | Supplier invoices are paid only if purchase order, receipt and invoice agree | Paying for goods not received |
| Approval limits | Purchases above $10,000 route to the controller | Unapproved spending |
| Audit trail | Every change records who, what and when | Undetected alterations |
| Period close lock | Closed months cannot be changed without controller approval | Altering reported results |
Why IT Controls Matter for Every Control
Klamm and Watson (2009) examined public companies disclosing serious control gaps under section 404 of the Sarbanes-Oxley Act and classified them by the components of the COSO framework. Firms with weaknesses related to information technology tended to report more weaknesses in other components as well, and IT weaknesses appeared to spill over into other areas of control. Because so much control now runs through systems, weak IT controls undermine everything built on them.
For Cedar Valley, that means the access settings, user reviews and change controls of the new system are not technical details for the IT contractor. The controller will own them and review user access every quarter.
How Integration Changes Management Accounting
Granlund (2011) argued that research on accounting information systems should pay more attention to management accounting and control, because integrated systems change what information managers receive, how quickly and in what form. Integrated systems can make product and customer costing possible at a level of detail that was impractical before, but they can also embed rigid structures that are hard to change.
The weekly plant cost report and customer profitability report from Module 5, and the budget from Module 7, will be produced from the system, daily if needed. Budget figures will be loaded into the system so that every report shows actual results beside the plan, which means managers see variances as they arise rather than after the quarter closes. The cost behavior analysis from Module 6 can be updated monthly using all the data rather than two months.
Data Conversion and Testing
The riskiest moment in any system change is moving the data. Customer and supplier lists, open orders, unpaid invoices and inventory balances must be cleaned before they move, because duplicate suppliers and outdated prices in the old system would carry into the new one. The controller will assign each master file an owner who checks it, and the contractor will run three test conversions before the real one. Test scenarios include a full order from entry to payment, a milk delivery with a quantity dispute and a month-end close, each carried out by the staff who will handle that task after go-live.
What Automation Cannot Do
The system can enforce rules but not judgment, a point the controller will repeat in training. It cannot tell whether an inventory count was done carefully, whether a supplier price is reasonable or whether the depreciation estimate from earlier modules still fits the yogurt equipment. It also cannot prevent people from sharing passwords. Training, supervision and the owner reviews built in earlier modules remain necessary.
The Rollout
The rollout starts with purchasing and accounts payable, where the three-way match produces the clearest benefit, then adds orders and inventory, then production, so that each stage is stable before the next depends on it. The old and new systems run in parallel for two months, and the controller compares results before the old system is retired. Running two systems doubles the work for that period, so temporary help is budgeted for the accounting team. The cutover is planned for February, after the year-end close and audit, so the auditors review a full year from a single system. After go-live, the controller will track three measures: days to close each month, the time to produce the weekly plant cost report and the number of manual journal entries, which should fall as transactions flow automatically.
Conclusion
Moving to an integrated system ties together the topics of this course: the equity records of Modules 1 to 3, the statements of Module 4 and the management reports, cost analysis and budgets of Modules 5 to 7. Hunton, Lippincott and Reck, Klamm and Watson and Granlund show what to expect, why controls must be designed carefully and how management accounting will change.
References
Granlund, M. (2011). Extending AIS research to management accounting and control issues: A research note. International Journal of Accounting Information Systems, 12(1), 3-19. https://doi.org/10.1016/j.accinf.2010.11.001
Hunton, J. E., Lippincott, B., & Reck, J. L. (2003). Enterprise resource planning systems: Comparing firm performance of adopters and nonadopters. International Journal of Accounting Information Systems, 4(3), 165-184. https://doi.org/10.1016/S1467-0895(03)00008-3
Klamm, B. K., & Watson, M. W. (2009). SOX 404 reported internal control weaknesses: A test of COSO framework components and information technology. Journal of Information Systems, 23(2), 1-23. https://doi.org/10.2308/jis.2009.23.2.1
Reading the MAT 201 Module 8 assignment instructions
Module 8 of MAT 201 commonly addresses automated accounting systems and controls, asking students to explain how technology changes accounting and what controls it requires. Your Module 8 directions govern; Cedar Valley and every number here are fictional. Explain the limits of the current system. Describe what an integrated system changes. Identify controls the system should enforce, including access and segregation of duties, and say who reviews them. Plan the transition. Connect the system to earlier topics such as budgeting and cost reporting, and say what automation cannot do. Cite research in APA 7 form.
How this MAT 201 Module 8 example is built
Today, orders are entered in one program, production is tracked in spreadsheets and accounting entries are keyed in by hand from both, so the weekly plant cost report from Module 5 takes two days to prepare. Hunton, Lippincott and Reck's International Journal of Accounting Information Systems article compared adopters and nonadopters of ERP systems over three years. Klamm and Watson's Journal of Information Systems article tested how IT weaknesses related to other weaknesses under the COSO framework. Granlund's International Journal of Accounting Information Systems article called for research on how information systems affect management accounting and control. The controls table includes role-based access, automatic segregation between entering and approving payments, three-way matching of purchase orders, receipts and invoices and an audit trail of every change. The rollout runs the old and new systems in parallel for two months and starts with purchasing and accounts payable.
Reading the MAT 201 Module 8 grading rubric
Systems papers earn credit when they connect technology to accounting processes and controls rather than describing software features. This example explains what integration changes, uses Hunton, Lippincott and Reck to set realistic expectations, uses Klamm and Watson to show why IT controls matter for all controls and uses Granlund to explain effects on management accounting. The controls table is specific, and the staged rollout limits risk. Linking the system to earlier modules closes the course coherently. Planning data conversion and testing, and naming the judgments a system cannot make, show a realistic view of what technology changes and what it leaves to people.
MAT 201 Module 8 help from the desk
Systems papers often describe software features without explaining how they change controls. Identify the controls the system enforces and those people must still perform. Another weakness is underestimating the risk of the transition itself; plan parallel runs and testing. Address access rights and segregation of duties. Explain how the system changes the timeliness of management reports. Connect the system to the organization's processes. Finally, note what automation cannot fix, such as poor data entered at the start. Plan how data will be cleaned and tested before the move, and when the old system will be switched off.
Write yours, or have the desk draft it
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MAT 201 Module 8 questions, answered
What does MAT 201 Module 8 usually ask for?
Aspen's MAT 201 commonly addresses automated accounting systems and controls in this module, so explaining how technology changes accounting and its controls is typical. Read your classroom prompt.
Do ERP systems improve performance?
Hunton, Lippincott and Reck found that adopters' financial performance held up better than that of comparable nonadopters over the years after adoption.
Why do IT controls matter for financial reporting?
Klamm and Watson found that IT control weaknesses tended to accompany weaknesses in other components of internal control.
Where can I find a free MAT 201 Module 8 sample paper?
The example above plans a creamery's move to an integrated enterprise system and the controls it must enforce.
What is three-way matching?
A control that pays a supplier only when the purchase order, the receiving record and the invoice agree on items, quantities and prices.