The foliage and transit density of the urban area results in a (10%) probability of failure of the current standard tracking system. As this is the first deployment in a densely developed zone, it is crucial for ISSI to have a successful deployment. A system failure would result in the perception that ISSI is incapable of adapting its technology to specific client needs. Presently, ISSI has three options: Option| Outcome| Deploy the standard system| Successful implementation of the standard system provides a sizeable profit while failure will result in significant financial loss to the company. Conduct a simulation on the standard system| There is a fee for the simulation, and it does not provide 100% confidence. | Deploy the robust system| This robust system has no risk of failure, but halves the potential profit margin.
Conducting a simulation decreases the value of the contract while providing no confidence that the system will be effective after deployment. Given (i) the significant immediate cost, (ii) a high potential that a simulation ailure is a false result, combined with (ii) the low-probability of a false pass result, the simulation test is not cost-effective. Deployment of the standard system has a high present contract value compared to deployment of the robust system. However, present contract value only provides understanding of one aspect of the decision (e. g. , the immediate term).
The Essay on Accounting Information Systems Simulation Paper
Internal controls are all measures taken by an organization for the purposes of protecting its resources against waste, fraud, or inefficient use; ensuring the reliability of accounting data; securing compliance with management policies; and evaluating the performance of all employees, managers and departments within the organization. The accounting system depends upon internal control procedures ...
The long-term non-financial impact of a system failure in a new market segment compels the more prudent course of implementing the robust system.
