Task #4 Jennifer has indicated that she would eventually like to integrate OHB's manual system for accounting for property, plant, and equipment with Solstice's automated system. Details on the two systems and the integration plan are included in Appendix II. Identify any risks that may exist related to the integration of the two systems and, where possible, provide recommendations to alleviate these risks.

Core 1 Integrated Problem 8 Problem Appendix Il System integration OHB system Robyn maintains a schedule of property, plant, and equipment in an Excel document on her laptop. When a fixed asset is purchased, Robyn manually adds it to the schedule, and a formula is used to calculate the monthly depreciation to be taken on each asset. Based on this, Robyn prepares monthly journal entries to record new additions, disposals, and depreciation on the fixed assets. Solstice system Solstice maintains a fixed asset register within its customized cloud accounting system, AirTrack. Details of additions and disposals are entered manually into the system but require electronic approval from a secondary reviewer who compares the entry to an electronic copy of the original invoice. Monthly depreciation is automatically calculated by the system using the straight-line method over the useful life recorded at the time of the addition. The system prepares and posts an automated journal entry to record the depreciation each month. Conversion plan Robyn will send staff from the Solstice IT department a copy of OHB's records. The IT staff will then manually enter the data into the AirTrack system, where the assets will be tagged with different company numbers to differentiate between Solstice and OHB assets. As it would be time-consuming to have someone review each new record, the IT staff will override the system controls to mark the OHB asset additions as reviewed and approved when entered. All assets will be entered at their carrying value on the date of entry. Going forward, AirTrack will automatically calculate depreciation for both the OHB and the Solstice assets. Once all of the data has been entered, IT will give Robyn approval to delete the original records from her laptop