Study Surgery
A: A strengths, weaknesses, opportunities, and threats (SWOT) analysis is a tool for focusing the mind when analysing a system or department, so it is a very useful exercise when researching your Managing Accounting Systems (MAS) project for Unit 10.
Strengths and weaknesses are factors that relate to the system or department in its current state. Opportunities and threats are external factors that may affect the future of the system or the department.
To prepare a SWOT analysis, split your page into four (as below) and ask yourself the following questions:
| Strengths What works well in the current system? What internal controls are effective and functioning as expected? Who motivates the team and why? | Weaknesses What does not work well in the current system? What internal controls are lacking or not functioning as expected? What do staff often have problems with or complain about? |
| Opportunities What is happening within the company or organisation, industry or economy that will create opportunities for the current department or system, in terms of growth and development? | Threats What is happening within the company or organisation, industry or economy that could threaten the current system? |
Once you have identified facts for each quadrant, you should consider how the weaknesses can be resolved; how the opportunities can be taken advantage of, given the strengths and weaknesses you have identified; and how the threats can be overcome. In the weaknesses and threats areas there is potential for fraud.
Carrying out this exercise is an excellent way to start thinking about your MAS project idea, and to consider what problems exist in the system that you will be analysing.
Simon Deane BA ACA is Managing Director of a private training provider
Accounting Technician - September 2007 - Page 25
