In Partial Fulfillment of the Academic Requirements of the subject AIS 1 9:15 12:00

CASE STUDY ANALYSIS

Submitted By: Arboleda, Janelle V. Cascabel, Joanne Lovel Murillo, Junil Louell Villa-Abrille, Reneealou Feby

Submitted To: Mr. John Karlo Dalangin

WHAT HAVE WE LEARNED IN CHAPTERS 4, 5, 6, OR 7?

In Chapter 4, the Revenue Cycle, we have learned that it is important for firms to have separate departments for warehousing, shipping and inventory control so as to avoid any possibility and incidents of fraud and theft. We are now also able to distinguish Sales Order, Billing and AR departments and that Sales Order or AR departments shouldnt prepare the bills because of the possibility of anomalies to happen. We learned that if the appropriate segregation of duties and authorization were not in place, an employee could embezzle funds by issuing an unauthorized sales credit memo. We have also learned the different advantages the journal voucher system has in a manual accounting system over the traditional journal systems. That access control over revenue cycle documents is just as important as the physical control devices over cash and inventory. In Chapter 5, the Expenditure Cycle, we have learned about the fundamental tasks that constitute the purchases and cash disbursements processes. We are now also able to identify the functional areas involved in purchases and cash disbursements activities and trace the flow of these transactions through the organization. Also, we are now able to specify the documents, journals and accounts that provide audit trails, promote maintenance of historical records, and support internal decision making and financial reporting. We now understand the exposures associated with purchases and cash disbursements activities and recognize the controls that reduce these risks. And lastly, we are now aware of the operational features and the control implications of technology used in purchases and cash disbursements systems. In Chapter 6, which is a continuation of the Expenditure Cycle, we have learned to illustrate the flow of the job ticket and its information from inception to impact on the financial statements. We have also seen some time lags in recording economic events typically experienced in the payroll system and the accounting professions view on this matter as it pertains to financial reporting. Another thing we learned were the advantages achieved in choosing a basic batch computer system over a manual system and a batch system with real time data input over a basic batch system. We have also learned the fundamental risks and control issues associated with fixed assets that are different from raw material and finished goods. In Chapter 7, the Conversion Cycle, we were able to understand the basic elements and procedures encompassing a traditional production process. Also, we have learned about the data flows and procedures in a traditional cost accounting system. We are now familiar with the accounting controls found in a traditional environment. We now understand the principles, operating features and technologies that characterize lean manufacturing. And also understand the shortcomings of a traditional accounting method in a world-class environment. We have become familiar with the key features of activity-based costing and value stream accounting. And also the information systems commonly associated with lean manufacturing and worldclass companies.

WHERE CAN WE APPLY WHAT WE HAVE LEARENED IN CHAPTERS 4, 5, 6 OR 7?

In the real world, we can use what we have learned in the four chapters that we have discussed in practice. Like when we would want to have our own manufacturing business, we should really have good internal controls. Even if we hire workers that we are familiar of, we would never know what runs in their minds if the opportunity for fraud and theft knocks them. So, we would make sure that whatever business we would have, big or small, supervision in all departments and segregation of duties is a must. Applying what we have learned in Chapter 7: Conversion Cycle, we will transform or convert input resources such as raw materials, labor and overhead into finished products or services for sale. Then we would direct exchange of these goods and services for cash or for credit, applying Chapter 4: Revenue Cycle. Then applying Chapter5: Expenditure Cycle, we would convert the organizations cash into the physical materials and human resources it needs to conduct a business. We concentrate on systems and procedures for acquiring raw materials and finished goods from suppliers. Then, continuing with the Expenditure Cycle on Chapter 6, we would do the payroll processing by illustrating it first with a manual system then consider the operational and control issues related to computerbased alternatives. And finally the acquisition, maintenance and disposal of fixed assets used in the operation of our business.

1. WHAT ARE THE MANIFOLD ETHICAL QUESTIONS ADDRESSED IN THE FILM? IN WHAT WAY WERE THEY PRESENTED IN THE FILM? The film addresses various sociological and ethical issues and deals with topics relevant to todays society. The film depicted in a way of bringing the concept of open source and the fact that there is an alternative to the general public, who often don't even know that there is one. Depicted in the film, one question to be asked is that what would you do if you were to discover a conspiracy in the management but your job is at risked or even your life? The main character showed that doing the right thing for the greater good is great sacrifice. Another is that is it ethical to claim others work or worst, steal the information for your own advantage? Everything was exposed in the latter part of the film where Milo discovers that the big boss has been stealing all these amazing information all along to make money and to be on top.

2. IN WHAT SPECIFIC WAY DID NURV COMPANY FAIL TO UPHOLD ITS ETHICAL RESPONSIBILITIES? Nurv was trying to develop S.Y.N.A.P.S.E. It is a new worldwide satellite communication program called Synapse, which will link all communication devices such as pagers, PDAs, and cell phones into one universal system. They need computer genius Milo to complete the system but gets suspicious when they keep giving him discs full of code with no apparent author on staff. The source codes were so amazing but never did they tell him where it came from or originated. When Milo's friend is killed in a supposed hate crime, Milo begins investigating the inner workings of N.U.R.V . First, the development of this synapse, is very unethical because information should be properly disclosed to the public, and why would you pay for something that is already yours. The Nurv boss was really being greedy and used the computer knowledge that he had to take advantage to the public who are that time maybe adjusting to the many technological advancement happening at that time. Secondly, how and where did they were able to acquire this amazing and confidential information? The sources of this information could be illegal and that is why they were trying to conceal it real hard to be not speculated by even the programmers who were working on the system. In the film, Milo discovers that Nurv has been stealing those codes.

3. WHO, DO YOU THINK, IS THE MAIN CHARACTER IN THE FILM? DESCRIBE THE CHARACTERS CONTRIBUTION IN SOLVING THE ISSUE OF THE FILM.

The main character, Milo, is an idealistic young computer genius. He and his friend, fantasize about launching a start-up company when hes recruited by NURV (Never Underestimate Radical Vision), a multi-billion dollar corporation, run by his professional hero, Gary Winston. Winston takes a personal interest in him. He needs his brilliance to stay ahead of the field in the race. Then tragedy strikes at Milo's personal life in the form of a vicious crime, and his suspicions turn to terror. He suspected the unethical activities happening behind the project the company was trying to develop. The misuse of information, the unknown sources of classified data and the inappropriate surveillance and intimidation of employees to conceal the secrets & lies behind the company were all seen by Milo. According to him, human intelligence belongs to the world, thus he need to expose the biggest technological conspiracy to the world and dispatch of this antitrust problem once and for all.

4. WHAT IS THE MAIN PROBLEM DISCUSSED IN THE FILM. PLEASE CITE THE SPECIFIC SCENE IN THE FILM PRESENTING THE COMPLEX NATURE OF THE PROBLEM. The main problem in the film is the illegal acquisition and concealment of classified information that belongs to the world. The power-hungry NURV boss used this information to his own ruthless advantage by developing an open system (SYNAPSE), and then make money out of it. He says If I dont do it, someone else will so why dont I do it and make money? He thought he could make it happen because of the big connections he had with authorities and certain fed departments. But all his plans were starting to turn upside down when young computer genius, Milo, discovers and investigates the great anomalies that Nurv has been hiding long since.

5. HOW DID THE FILM END? EXPLAIN THE VARIOUS PROCESSES THAT LED TO THE SOLUTION OF THE PROBLEM. The film ended as the biggest technological conspiracy has been exposed to the world. But, getting there was not an easy thing to do for Milo. He did everything from the smallest details to crack the code behind the system. He tried to consent the authorities of the law but it turned out they were accomplice to the crime. He also went over the companys surveillance cameras and time logs to see who was also taking part of this anomaly. Using his computer skills, and his best friend, they used the satellite to connect to all the communication devices in the world; it was really a very long rat-chase to unlock the truth behind Nurv and the synapse. In the end, it was the truth that prevailed and the budding computer genius and his team became worldwide news.