ALLAMA IQBAL OPEN

UNIVERSITY

Course Financial AccountingCode (8501)Semester Autumn, 2014Level MBA Marketing (3½ Years)Tutor Sir Asif Muzaffar SheikhName waQas ilYasRoll # BA 582702

Assignment # 02

Topic = Analysis of AIS of any Public

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Limited Corporation.

ACKNOWLEDGEMENT

All gratitude and thanks to almighty “ALLAH” the

gracious, the most merciful and beneficent who gave me

courage to undertake and complete this task. I am very

much obliged to my ever caring and loving parents whose

prayers have enabled to reach this stage.

I am grateful to almighty ALLAH who made me able to

complete the work presented in this report. It is due to

HIS unending mercy that this work moved towards

success.

I am highly indebted to my course instructor for providing

me an opportunity to learn about the “which is vital

ingredient” of MBA program. I am very grateful to my

teacher (Sir Asif Muzaffar Sheikh) for providing me

guideline for the completion of this report.

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I feel great pride and pleasure on the accomplishment of this report.

ABSTRACT

This report is the Practical part of the most vital practice

of our MBA-Marketing program. The sole objective of my

activity is to familiarize with the practical manipulation of

business organization. This report has been written to

know how big organizations like United Bank Limited

manage their teams to achieve their common goals. In the first phase of the report there is the general introduction about the company and then different terms have been explained, then the mission, values, different services and different strategies of the organization have been explained. In the next part, SWOT analysis of the firm have been done by the help of which it is identified that what are the strong areas of the company and where it lacks so that it can improve, and then in the end most important my experience while visiting in the UBL.

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DEDICATION This report is dedicated to the greatest man in the world

that shows us the right path. Who is the great patron of

the mankind that is Holy Prophet Hazrat Muhammad

(PBUH).

I would also like to dedicate this small effort of extract to

my Parents and Teachers. They have always been a

shining star to look upon, to give light and to show me

the directions whenever I am lost. May Allah give them

more strength and long life to guide me forever. Ameen!

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Table of Contents

Introduction of Topic 06Practical Review of Company 13Application of Topic 15Vision Statement 19Mission Statement 19SWOT Analysis 20 Conclusion 21Recommendations 22References 22

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Introduction of Topic:

Analysis of AIS of any Public Limited Corporation

Facilitate the accounting process. With accounting information systems, a computer program performs accounting processes such as payroll, accounts payable/receivables, general ledger and others. In addition, such as system streamlines multiple accounting processes by assisting with compiling and recording financial information for better record keeping. Because accounting information systems are expected to continue to grow over the next 10 years, there is an increased need for people who know how to use them.

Function

The use of information systems is crucial in recording vital financial data. Major corporations keep data such as sales, profits, expenses and many other items for financial reporting and budgeting. Additionally, these systems allow some type of transaction recording on a periodic basis. Good record keeping is important for both tax purposes and possible audits. By using computerized accounting information systems to manage

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accounting processes and maintain proper records, companies are able provide accurate, timely data to shareholders and/or regulatory agencies when necessary.

Benefits

Accounting information systems provides businesses with the ability to record all types of financial information for future use. In addition, these systems are huge time-savers and make the accounting processes and procedures easily repeatable. Because of that, these systems save companies money because the number of people needed to complete accounting processes is reduced. Also, the risk of human error is drastically reduced because the computer systems manage the accounting processes, and documents are automatically created by the systems. It is imperative that businesses keep accurate books, and accounting information systems make this requirement much easier to meet.

Important sub topics

Important sub topics are:

Careers

Because the accounting industry has become much more computerized, the role of accountants and auditors are changing drastically. Instead of doing many of the tedious tasks that are now handled by the computer systems, accounting professionals are seen more as system managers, information analysts and/or advisers. Accounting information systems professionals usually go into careers in accounting systems, systems design, accounting systems management, auditing, consulting and other

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systemsrelated areas of accounting. The salary for these positions ranges anywhere from $54,000 to $85,000 or more a year, depending on experience.

Curriculum

Generally, in addition to the standard accounting curriculum, a student studying accounting information systems will take several information systems classes. Courses such as accounting information systems, systems analysis and design, and database analysis design are commonplace in most programs. Courses such as system quality assurance and controls, and e-business-type courses are also included.

Considerations

The accounting information systems profession is growing rapidly with the advent of businesses computerizing their accounting processes. As a result, businesses are seeking professionals with not only an information systems background, but also people who understand accounting concepts. Although students pursuing an accounting information systems degree are faced with pretty rigorous coursework, pursuing this line of study will reap many rewards because the career outlook for this profession is excellent in terms of job growth and financial rewards.

Troubleshooting

The importance of an accounting system documentation is clearly visible when something goes wrong and people need to figure out how to fix it. For example: An accounts payable system is adding a weird tax to certain vendors. The easiest way to find out the cause of this issue is to review documentation to see how the

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system was set up and why. This is crucial when a system is first put to use and people are finding unexpected issues. Maybe a report is asking for information that doesn't exist. Looking into the documentation would help in fixing the problem by showing where this information is set up within the system.

Decisions

Documentation of an accounting system should present decisions as a system is implemented. Many systems allow for lots of flexibility and, along with the flexibility, come decisions. For example, documentation would show who decided how many digits an account should have, and the reasons why that decision was made. This is quite important when a firm undergoes major changes and new management wants to understand decisions made by people no longer there. Maybe those decisions were wise; maybe not. But at least there is some documentation of decisions made for the firm.

Changes

When a system needs to be updated with a new version or a new module, having proper documentation can help in making this process go faster. This is crucial if an accounting program was designed specifically for a company. Any technical details are very important when considering compatibility with other software and any changes needed to the program. For example, you may need a fixed asset module and you want that module to transfer information to the general ledger.The documentation should give you clues as to whether you can do that, and if so, what needs to be done. Usually, information technology (IT) folks use documentation for technical information.

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Format

Good documentation for accounting systems are usually a combination of flowcharts and text. Many times, a data diagram shows how a system was developed and implemented better than text. These can be a bit complicated to understand, so make sure your documentation has a legend so you can follow the concepts.

Other formats for documentation are in the form of questionnaires, where specific questions are asked and answers are documented. Based on answers, reports and other accounting system issues are resolved. Many times documentation has both flowcharts and questionnaires.

Considerations

Many firms document how and why a certain accounting system was selected instead of others. That can give users a really good idea of what the thinking was then, even if none of the decision makers are around for questions. Since a system implementation can be expensive, minutes of meetings are usually available to document the decision process. Maybe free training was offered by one vendor that was more attractive than another. So, even before a system implementation is under way, documentation should be available as well.

Control Environment

The control environment is the overall attitude and tone of an organization toward internal control. Often talked about as "tone at the top," an effective control environment starts with management that is interested in such controls. The control environment affects a company's internal control through explicit and implicit actions. Explicitly, a strong control environment is

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shown through management taking time to design and implement internal controls, monitor risk and communicate the results to employees. Implicitly, strong control environments are demonstrated by management that doesn't tolerate circumnavigation of controls and clamps down on those who bypass the control system.

Risk Assessment

Risk assessment means determining how relevant risks affect the business objectives of your company. An effective internal control system has internal controls mapped to the risks that could impede the company's success. Of course, mapping controls to risk requires that you identify these risks in the first place. This is where the risk assessment component of the framework comes in. A best practice is to perform an annual risk assessment during the company budget process.

Information and Communication

A business can design the best internal control system in the world, but if employees don't know about it, there is little chance of it benefiting the company. The information and communication part of the internal control framework is charged with making sure that information gets where it needs to be in the organization. While this includes information from company management getting to employees, it also includes information from employees making it to management. For example, implementation of a policy to report suspected fraud would be included in the information and communication part of the framework.

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Monitoring

The monitoring part of the internal control framework is somewhat like an annual checkup for the control system. Even the best internal control systems should adapt to changes in the company or the business environment. To check for these changes, small businesses should conduct periodic evaluations of the entire internal control system and act on the results of these evaluations.

Control Activities

When most people think about internal control, control activities are what come to mind. These are the specific actions that management and employees take to maintain internal control. For example, a company determines during the risk assessment that theft of cash is a risk to the company's profitability. The company then designs a control to counter the risk. For this example, the company may implement that only one person uses a cash drawer on a shift. The rule of one person per cash drawer is the control activity in this situation.

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Practical study of the organization

United bank limited (UBL) is established on 7 November 1959 and

it has assets of over Rs. 550 billion and a solid track record of 50

years. In addition is to convenience of over 1112 branches

serving you throughout the country and also at several overseas

locations. United bank limited has taken progressive steps and

has introduced innovative and services to provide a variety of

banking and financing services.

UBL Branches in following Countries

BahrainQatar (UAE)United states of America United Kingdom Switzerland

With over 1400 domestic branches all over Pakistan and 19

overseas branches UBL is one of the largest banks in Pakistan.

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In the Net banking service of UBL offers a simple, convenient &

secure method of accessing in bank amount on the internet

United bank limited has assets of over Rs. 550 billion and solid

track record of fifty years. In addition to the convenience of over

branches serving throughout is the country and also at several

overseas locations. United Bank limited has assets of over 550

billion and solid track of 50 years .Its date established November

7, 1959 United Bank limited is the group principles activities are

to provide commercial banking and other financial services. The

group offers personal banking , cash management , retail loans

and financial services including deposits , savings , current

bank account , vehicle loans , personals loans , goal banking ,

lending to priority sector and small scale sector , foreign

exchange and export finance, corporate loans and equipment

loans . The groups operate through 1112 branches with in

Pakistan and 20 branches outside Pakistan.

Head Office

State Life Insurance Corp. Building #1,

P.O. Box No.: 4306

Phone: (92-21) 111-825-111

Gram: "UNITED"

Fax: (92-21) 2413492

Subsidiary

United Bank AG Zurich, Switzerland

UBL Fund Managers Limited

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United Executors and Trustees Company Limited

Associated Company

Oman United Exchange Company, Muscat

UBL Insurers Limited

Practical Study of the Organization with Respect to Topic Many further accounts information system are running in UBL which are:

Omni Account Holders can use their Omni Account through the SMS Channel. By use of simple SMS Commands they can avail an array of Banking Services. To use account through SMS Commands you don’t need a Special SIM or GPRS Connection.

How to Activate? To use Omni account through SMS you need to have an Account SMS PIN. At the time of Account activation, the call Center

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representative will ask you to generate an Account SMS PIN and guide you through the process. In case you forget your SMS PIN please call 111-825-777 for PIN re generation. How easy it is to use? It’s very easy to use Omni Account through SMS channel. It’s just a three step process:

Step 1: Send SMS command to 8257Step 2: Receive system generated call from OmniStep 3: Enter you Omni Account PIN to complete the transaction

Mobile Top-up By using SMS Command you can easily get Mobile Top Up anywhere, any time and also for any mobile#. There are no charges for mobile top-up. Top-up can be availed of following Mobile Services: Ufone Zong Steps to get Mobile Top Up: Go to the write message option of your mobile phone

Type command following command and send it to 8257 Ez e.g. Ez 70 ufone 03121234567 1234 Type following command and send it to 8257 pay bill e.g. pay bill 6000 KESC 12546789412 1234You will receive a system generated call back from Omni and possible callback # will be 02132404567, 02132445785 or 02132487513 03 or 03158258888To confirm transaction, authenticate yourself and enter Omni PIN which you have created at the time of Account ActivationYou will receive confirmation SMS from 8257 that you have successfully loaded your mobile balance.

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Withdrawal Agent

Please take your original CNIC along with you when you want to collect your cash from UBL Omni DukaanGive your 16 digit disbursal code to UBL Omni Dukandar and show your original CNICOn successful completion of transaction you will be handover the printed receipt along with the cash.You will receive an automated confirmation SMS from '8257'

Withdrawal at UBL Branch

When you go to collect your cash from the specified branch, fill out UBL Omni Cash withdrawal slipProvide teller with 16 digit disbursal code, transaction amount & CNICPresent your payment slip to the teller and collect your cash.

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How to open a UBL Omni (Level 0) Account - for individuals only Customer can open UBL Omni (Level 0) Account just by following these simple steps:

Visit nearby UBL Omni Dukaan with original CNIC and initial deposit amount (Rs 100 minimum)

UBL Omni Agent will take a digital picture of customer and his/her original CNIC (front side only)

Customer will submit initial deposit amount, i.e Rs.100 (minimum) to UBL Omni Agent

Customer can ask UBL Omni agent for instant ATM card (if required) by paying Rs.250 ATM fees

Agent will provide a printed receipt along with Terms and Conditions

Customer will receive SMS from "8257" informing them that their Account Opening Request has been initiated

Customer can conduct one withdrawal and deposit transaction before account activation.

Customer will be contacted by Contact Center representative for account activation within three working days (subject to verification of CNIC information)

Upon activation of Omni account, customer will receive a confirmation SMS from "8257" after activation of Omni account, the following account limits for level 0 will apply:

Daily Monthly Annually Maximum Account

Balance Limit

Rs. 15,000 Rs. 25,000 Rs. 120,000 Rs. 100,000

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Vision

To be a world class bank dedicated to excellence, and to surpass the highest expectations of our customers and all other stakeholders

Mission

Set the highest industry standard for quality, across all areas of operation, on a sustained basisOptimize people, processes and technology to deliver the best possible financial solution to our customersBecome the most sought after investmentBe recognized as the employer of choice

Data collection methods

The Primary & Secondary data of this Assignment come from the:

Interviews of Personnel of UBLDifferent WebsitesNewspapers

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SWOT Analysis:

Strengths

Businesses use AIS to make their Accounting Activities Easier, Quicker and more Accurate.

AIS Gives safe time to employees and Avoid Mistakes.

Weakness

• Less Opportunities of Non Experience Persons.• Errors in Computerized System can Lead to Poor

Decision Making.

Threats

• Hacking• Security Threats

Opportunities

• Advance in Technology.• Enhance the Information System.

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Conclusions

During my Internship in United Bank limited (UBL) I observed many things at the Bank such as its working procedures, policies, and many other aspects of practical nature of a big organization. On the basis of all these observations I came to the conclusion.

United Bank limited (UBL) HRM department has shown excellent performance in the Human Resource Management. Employees are well paid over time different allowances in comparison with others organizations. The United Bank limited (UBL) providing bank rules pensions for retirement benefits, basic health-care facilities, as well as apprenticeship schemes and training programmed for new officers and other different categories of new employees.To association gives the right and confidence to convey labors problems to top management in better way. The higher authorities some time problems ignore the association and its problem the higher authorities should give special attention to association and labor management problems.As Bank grow in complexity the number of problems increases Managers frequently attempt to solve these problems by creating new systems, policies, procedures, forms.

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Recommendations

Make it Easy to Understand & Operate For Employees.Effective Plans to Face the Problems.Improve Decision Making Capabilities.Increase the Sharing of knowledge.

Referenceswww.ubldirect.comwww. ubl online.com WikipediaRelevant text book of AIOU Personal observationsDiscussion by UBL Branch ManagerTeacher discussion

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