ICAEW Accredited Products Scheme

[Fixed Asset Evaluation]

[Company Name]

[Product Name Version number]

[Company /Product logo]

Evaluation carried out by: [Name of Evaluator]

Date completed:

Signed:

FA_ Questionnaire V1.0

Contents

Section Page

1 Summary
1.1 Introduction
1.2 Concept of software under evaluation

2 Approach to evaluation
2.1 Objective
2.2 Approach, including work performed
2.3 Software/hardware utilised
2.4 Report structure

3 Matters to consider before purchase

3.1 General overview
3.2 Supplier background
3.3 Product background and Suitability for user
3.4 Typical implementation
3.5 Vertical applications
3.6 Minimum recommended hardware specification
3.7 Operating system supported
3.8 Databases supported
3.9 Support/ installation/partners network
3.10 Software installation & support
3.11 Limitations

4 Evaluation conclusion

Disclaimer

5 Technical Evaluation Questionnaire Functional Requirements

5.1 Security and Continuity of Processing
5.2 Input of transactions
5.3 File maintenance
5.4 Processing
5.5 Reports
5.6 Performance of requisite accounting functions
5.7 User Documentation
5.8 Efficiency
5.9 Integration facilities
5.10 Support and maintenance
5.11 Finance Leases
5.12 Operating leases

The Prologue – section 1- 4 should follow.

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5.1 Security and Continuity of Processing

1. i) Are different levels

of passwords provided
to control access?

ii) Is each user required

to have a personal
password?

iii) Can a report be

produced detailing all
current users and their
authority levels?

2. Do the security features

cover:

i) System Access?
ii) Company access?
iii) Menu access
(ledgers)?
iv) Sub menu access
(ledger facility)?
v) Field access?

3. Does security allow for

read and read/write
access to be specified
separately?

4. Can the menus be

tailored so that an
individual user can only
access those functions
that they are authorised
to access?

5. Does the system provide

specific levels of
password control to
authorise master file

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amendments?

6. Are there specific

security procedures (by
passwords or warnings)
over the:

i) Update of
ledgers?

ii) Closing of
accounting periods?

iii) Deletion or
archiving of
transactions?

7. Does the system

facilitate back up of
data?

How is this provided:

i)Within the software
application?

ii) Within the operating

system?

iii) Are any of these

procedures automatic?

iv) Is the user forced or

prompted to back-up at
certain intervals?

v) Can the intervals be

customised.

8. Does the system

facilitate recovery
procedures in the event
of system failure? (e.g.
Roll back to the last
completed transaction).

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9. If system failure occurs
part way through a
batch or transaction,
will the operator have to
re-input only the batch
or transaction being
input at the time of the
failure?

10. Are there any features

provided with the
software to help track
down processing
problems?

11. Are system messages

clear and are user
responses properly
structured to ensure that
erroneous key strikes do
not lead to inappropriate
actions?

12. Is there a system log

which details:

i) User activity?

ii) Error messages?

iii) Security violations?

13. What approach will the

supplier take towards
handling the EURO.
Consider requirements:
i) transaction
period i.e. dual
currency in the
UK

ii) post the

transition period.

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5.2 Input of transactions

The following sections on Input of transactions, File maintenance, Processing and Reports are aimed at a
fixed asset ledger. Where the transactions which impact this ledger are input in other modules, (such as
purchases) the questions need to be related to the originating input.

1. Is data input controlled

by self-explanatory
menu options (and are
these menus
application-specific)?

2. Does the system provide

input validation checks
such as account code
validation,
reasonableness (limits,
VAT or discount
checking) and validity
checks?

3. Does the system allow

for batch control totals?
If so:

i) Are batches
automatically
numbered?

ii) Are batches forced to

balance before ledger
update?

iii) Does the system allow

the temporary halting of
input of a batch to allow
for queries or other
activities to take priority
(e.g. set up a new
account)?

iv) Is the user forced to

confirm batch totals?

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4. Is attempted entry of
unbalanced journals
rejected?

5. Are input errors

highlighted? Are they:

i) Rejected and reported

on screen?

ii) Rejected and error

reports generated?

iii) Accepted and posted

to suspense?

6. Is a detailed audit trail

of all input data
generated?

i) Are transactions
allocated a unique
reference number by the
system?
ii) Is this trail
adequately protected
from deletion?

7. Where the system is

integrated with the GL,
is it impossible to
allocate input values
directly to ledger
control accounts?

8. Where the system is

integrated with the GL,
does it check that the
total balance on the
ledger agrees with the
respective control
accounts?

9. Does the system permit

multi debit/credit

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journals?

10. Are all transactions

adequately identified on
screen as to type and as
to debit or credit?

11. Can separate asset type

codes be input for each
invoice line?

12. Can VAT be input

separately for each
invoice line? (This
applies to motor
vehicles only).

13. Is there control over the

creation of new asset
categories?

14. Does the system accept

input files from other
computer packages?

15. Does the system provide

a "trial-post" facility
that does not post
transactions to the
actual books, but allows
reports and on-line
enquiries to be
generated as if the
transactions entries had
been posted?

16. i) How many categories

of tangible fixed assets
are available?

ii) How many types of

tangible fixed asset
movements are
available?

17. Can the following

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information be recorded
for each tangible fixed
asset:
i) Historic cost
ii) Accumulated
depreciation
based on
historic cost
iii) Date of
revaluation
iv) Revalued cost
v) Accumulated
depreciation
based on
revalued cost
vi) Group cost

vii) Accumulated
depreciation
based on group
cost
viii) Name of
valuers (in the
case of revalued
assets) and year
of valuation
ix) Comparative
figures
x) Value (if
significantly
different from
net book value)
xi) Asset
description
(how long)
xii) Date of
acquisition
xiii) A field showing
where purchase
price or
production cost
is for the first
time determined
as being the
value ascribed

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to it by the
earliest
available record
of the company.

18. How easily can non-

standard tangible fixed
asset adjustments be
processed (such as the
write down of a
particular asset)?

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5.3 File maintenance
1. Is the creation or
amendment of standing
data (e.g. asset type
depreciation rates)
controlled by menu
options and are these
menus application-
specific?

2. Does the system provide

input validation checks?
(e.g. asset type
validation by displaying
the underlying
information relating to
the asset type such as
the description,
completeness checks
and format checks, i.e.
checking that the
information has been
keyed in correctly).

3. Are input errors

highlighted? Are they:

i) Rejected and reported

on screen?

ii) Rejected and error

reports generated?

iii) Accepted and posted

to suspense?

4. Does the system prevent

an asset type from being
deleted while it is still
active? Are there other
constraints over the
deletion of accounts?
(e.g. movement during
the year, associated
asset sub-types).

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5. How many asset types

can be created? Is it
adequate to permit
sufficient depth of
analysis?

6. i) Are reports of all

master file changes
automatically
generated?
ii) Can reports be
invoked which identify
the fields which have
been modified?
iii) Would it be possible
to show that these
reports provide a
complete record of all
such changes?

iv) Do the reports show

how the fields have
been modified? (e.g.
before and after).

7. i) Does the system allow

selective archiving of
old data on a user-
defined basis?

ii) Can this data still be

used by the report
generator?

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5.4 Processing
1. Does the system ensure
that menu options or
programs are executed in
the correct sequence?
(e.g. Run depreciation
posting prior to month
end routines).

2. Is there an audit trail of

all changes to
transactions which have
updated the ledger?

3. Does the system provide

automatic recalculation,
where appropriate, of
data input? (e.g. VAT on
certain vehicle asset
types).

4. Does the system warn

the user when the system
is out of balance? Is this
check done on switching
on or on ledger update?

5. Does the system include

routines for recovery
from abnormal
termination (e.g. power
cuts)?
i) Are these automated?

ii) Do they rollback to

the last completed
transaction?

6. i) Is there an option to
calculate depreciation by

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month or by year or by
any other interval?
ii) Can residual or scrap
value be used to reduce
depreciable amount?

7. Does the package

prohibit or warn of a
depreciation charge,
which would increase
accumulated
depreciation to a value
exceeding cost?

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5.5 Reports
1. Are all reports
adequately titled and
dated? (e.g. report
name, company name,
date, period, batch, last
entry number, period
end, page numbers etc).

2. Do the reports provide

totals where applicable?

3. Is it clear when the

report has ended? (totals
or end markers).

4. Can reports be
temporarily retained on
computer files to
optimise machine time
usage? Are such files
adequately protected
from deletion or
amendment?

5. Is a report generator
provided as part of the
software or as an option
associated with it?

6. Can screen layouts,

reports and transaction
formats be easily
adapted to users'
requirements?

7. Can the report

generating facility make
use of user-defined fields
(including external

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fields)?

8. Can a hard copy be

produced of all screen
enquiries?

9. Are transaction files for

all previous periods of
the year retained in the
system to permit
enquiries and reports?

10. Are full records of all

input, processing and
output routines
generated? Are these
sufficient to trace all
transactions fully
through the system?

11. Are reports of all master

file changes
automatically generated
or stored for later
printing?

12. Can all reports be

reproduced after the
period end?

13. Can full lists of master

file information be
produced?

14. Are all transactions on

all reports identified?
Do the reports show
whether items are debit
or credit and do they
give sufficient narrative
and coding to enable
cross referencing?

15. Do standard reporting

options give sufficient

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flexibility to tailor
individual reports? Do
these reporting facilities
permit multiple key-
sorting, variable report
intervals and optional
selection parameters?

16. Are standard reports

always produced, even
when they are nil
returns

17. Do the budget reports

provide sufficient
analysis of variances?
Do such reports provide
exception reporting,
percentage analysis and
comparatives?

18. Are all movements

during each accounting
period shown on ledger
detail reports? Do these
reports show how all
asset transfers have
been treated?

19. Can the fixed asset

ledger be sufficiently
analysed by cost
centres, company &
period?

20. Does the system check

to ensure that the fixed
asset summary reports
cross-cast?

21. Does the output of the

system facilitate proper
control to ensure that
decisions are not
inadvertently taken on
the basis of incorrect

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information? (e.g.
warning that the
monthly depreciation
routine has not yet been
run).

22. Does the system force

the production of
month-end reports?

23. Are transactions lost

after month end or year
end close, can the
reports be rerun after a
period close?

24. Can the reporting

function make use of
external data files?

25. Does the report

generator have the
facility to scroll up and
down when output to
screen?

26. Can all reports be run

without the need for
period-end procedures
to be initiated?

27. To what extent can

customised reports be
run on fixed assets data?

28. In respect of the same

asset can the system
report cost and
depreciation based on:

i) Revalued
amounts (and
years of
revaluation,
together with
the name or

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qualification of
the valuer
where the
current year
contains a
revaluation)

ii) Historic cost amounts

iii) Prior year amounts

iv) One more definable

amount.

29. Are the following

custom reports available
for fixed assets:
i) A standard
statutory
accounts format
fixed assets
movements
summary?
ii) Report of
additions and
disposals.
iii) Reports
showing total of
depreciable
assets by
category.
iv) Report showing
cumulative
amount of
interest
included in
determining the
production cost
of any fixed
asset, indicating
the balance
sheet item
affected.

30. For assets held under

finance lease and

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similar hire purchase
contracts, can the
system produce:

Either Report showing, for

each major class of
asset:

a) Gross amount

b) Accumulated
depreciation

c) Depreciation
allocated for the
year

Or a) The net amount

of such assets
included within
the overall
fixed asset total.

b) The
depreciation
allocated for the
year included
within the
overall fixed
asset total.

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5.6 Performance of requisite accounting functions

1. Does the software

perform the functions,
which the user wants
performed?

2. Can the software be

used by more than one
user at the same time?

3. i) Can the software

support groups of
companies/
departments/
branches?

(How many such

branches or companies
can be supported?)

Can they be
consolidated?

ii) Can the system

consolidate entities with
different charts of
accounts?

4. Is multi currency
processing available?
(What is the maximum
number of currencies
available?) Is
conversion to sterling
automatic?

ii) Can these periods be

adjusted to suit different
user requirements?
iii) How many
accounting periods can
be open at any one time.
iv) How many years can
be open?
v) Can a period or year

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be re-opened after it has
been closed?

6. Are the ends of

accounting periods
determined by the user
rather than being set by
the system?

7. i) Can data from all

accounting periods be
accessed at any given
moment?

ii) Can previous months

be accessed for enquiries
or reports?

8. i) Does the system allow

posting to more than
one accounting period
at a time?

Is it possible to allocate
transactions to future
periods?

or to previously closed
periods?
ii) If the system allows
posting to previous or
future accounting
periods or years, does it:
a) Flag to the user that
this is occurring?

b) Revise subsequent
periods accordingly?

c) Report these
transactions separately.

9. Does the system permit

use of budgets and
provide comparisons

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between budgets and
actuals?

10. i) What is the maximum

value of transactions
and of totals, that can be
handled by the system?

ii) What is the maximum

number of transactions
that can be handled by
the system?

11. Are the control features

provided by the
software adequate to
support effective user
controls?

i) Transaction
sequencing?

ii) Automatic dating of

transactions?

iii) Identification of
user-id or program
generating (i.e. the
source) the
transactions?

12. What complementary

clerical procedures (to
be imposed and
effectively monitored by
management) are
recommended by the
software supplier?

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5.7 User documentation

1. Is the manual clearly

laid out and
understandable?

2. Is the manual
comprehensive and
accurate?

3. Is there an index to the

manual?

4. Is it easy to locate
specific topics in the
manual when required?

5. Is it easy to follow
through all procedures
in the manual?
6. i) Does the manual
include:

a) A tutorial section?
b) A guide to basic
functions?
c) Pictures of screens?

ii) Are completed

examples included in the
manual?

7. Are help screens

available relating to the
task in hand? (context
sensitive help)

i) Do they provide
on-line
instructions on
how to use
particular
features of the
software?

ii) Can they be edited or

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prepared by the user?

8. Does the documentation

clearly specify the
actions to be taken by
users at each important
stage of processing?

9. Will the software

supplier provide regular
updates of
documentation in the
event of modifications
or revisions?

10. Will the software

supplier make the
detailed program
documentation (e.g. file
definitions for third
party links) available to
the user, either directly
or by deposit with a
third party?

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5.8 Efficiency
1. Are the various
functions of the system
menu-driven, or
otherwise easy to
initiate? Is there a good
response time in the
initiation of functions?

2. Is data entry easily

repeated if similar to
previous entry?

3. Is there a good response

time:
i) In processing
data input?

ii) In producing
requisite
reports?

iii) In updating
files

iv) In producing
back-up files?

v) In deleting
redundant
information
from files?

4. Does the system prevent

access to a record while
it is being updated? Is
the locking at file or
record (e.g. asset-type)
level?

5. Does the system retain a

log of file updates until
the next occasion on
which the relevant
information is reported

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or the relevant file used
in a regular control
procedure?

6. Can regular reports be

easily duplicated if
required?

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5.9 Integration facilities

1. Is the ledger updating

process satisfactorily
controlled by production
of update reports?

2. Does the software run

under an operating
system, which is a
commonly accepted
standard?

3. Can more than one

system function be
performed
concurrently?

4. Can the software be

linked to other packages
e.g. word processing,
graphics, financial
modelling, to provide
alternative display and
reporting facilities?
Can definable links to
spreadsheets be created?

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5.10 Support and maintenance

1. Will the supplier or

dealer provide
corrections to the
programs? Are bug
fixes free of charge - for
how long?

2. Will the supplier or

dealer provide general
enhancements to the
programs? Will these
be provided
automatically? Will
they be given free of
charge?

3. Will the supplier or

dealer provide "hot line"
support to assist with
immediate problem
solving? If so, at what
cost? At what times
will this support be
available?

4. Is the supplier or dealer

capable of giving
sufficient ongoing
education and training
and other support?

Do resellers go through
an accreditation process
to ensure they reach a
set standard for
implementation and
support?

5. Can the supplier, dealer

or some other
organisation provide all
the hardware, software
and maintenance

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requirements of the
user?

6. Is there nationwide
support:

· Telephone
· Modem link
· Local dealers/support

7. Is a warranty offered in
respect of specification
of the system?

8. Will the software

supplier make the
program source code
available to the user,
either directly or by
deposit with a third
party (Escrow)?

9. Are there any unduly

restrictive conditions in
the licence for the
software?

10. Would the software

house be prepared to
accept the Institute of
Purchasing and Supply
model contract?

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5.11 Finance Leases and similar hire purchase contracts

Unless otherwise indicated,

finance leases include similar
hire purchase contracts.

1. Is the software able to

determine whether a
leased asset is a finance
lease or an operating
lease based on
information input by the
user?

2. Does the program

calculate the present
value of the minimum
lease payment at the
inception of the lease
based on the interest
rate implicit in the lease
contract?

3. Are negative finance

charges not permitted
by the software, or,
alternatively, is their
existence flagged to the
user?

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4. On what bases can
rentals payable be apportioned
between finance charges and
outstanding capital
obligations?

(i) straight line

(ii) sum of digits
(‘Rule of 78’)
(iii) actuarial
(iv) other (specify)

5. Will the software not

permit a depreciation period
for the asset, which is longer
than the lease term (finance
leases only)?

6. When apportioning
payments between obligation
and finance, does the system
make any assumption
regarding timing of payment
(e.g. at start or at end of
payment period)?

Either

7. Can the software report

the outstanding
obligations in respect of
finance leases, net of
future finance charges,
as a separate liability,
split between amounts
payable.

(i) within 1 year

(ii) within 2 to 5
years
(iii) in more than 5
years

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8. Alternatively, can these
amounts be disclosed as
gross obligations, with
future finance charges
being separately
deducted from the total?
Or
(b) Where the obligations
are reported within other
liabilities, can the software
also report an equivalent
analysis to (a) above.

9. Can the software report

the aggregate finance
charges allocated for the
period in respect of
finance leases?

10. Can the software make

use of the inception date
of the lease to report
leases entered into
before the period-end
but which commence
after the period-end?

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5.12 Operating leases
Operating leases are not
included in fixed assets but
expenditure on them is
charged to the profit and loss
account.

1. Is the software able to

deal with operating
leases?

2. Can the operating leases

be split in the following
ways for reporting
purposes:
(i) between
(a) land and buildings

(b) other

(this is needed to
disclose future
commitments)
(ii) between

(a) plant and

machinery

(b) other

(this is needed to
disclose expenditure in
the year)
Can this figure be added
to the total amount for
the depreciation charge
and finance charge for
assets held under
finance leases and
reported?

3. Can the software report

the annual payments
made under leases and
split these between
those leases to which

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the company is
committed for
(a) up to one year
(b) within the
second to fifth
years
(c) in more than
five years

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