Page 237 - Microsoft Word - 00 ACCA F1 Notes Prelims.docx

Financial systems and procedures

8.2 A comparison of manual and automated systems

Advantages of manual Disadvantages of manual
systems systems

 Low capital cost  Slower at performing calculations

 no computer experience required  More likely to make calculation errors

 easy to correct errors (e.g. whitening  Analysis of information is more time-
fluid) consuming

 Ledgers are portable  Less easy to audit

 Can review transactions for logical
sense while entering/performing
calculations

Advantages of automated Disadvantages of
systems automated systems

 Quicker  Capital cost

 Can perform more complex  Training cost, especially for older
calculations staff

 Fewer errors  Less easy to correct errors

 More security (passwords)  Systems can crash

 Easier to sort and analyse data

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