Background

You are an associate consultant at the accounting and advisory services firm Rindlisbacher Advisors, PC$.$ You have been assigned to a project for the next three weeks at a new client, Raindrops on Roses, Inc.

Mason Lowe runs Raindrops on Roses, Inc. $($RoR$),$ a wholesale flower distributor with stores in several major metropolitan areas of the U$.$S$.$ He is considering expanding his business, but he thinks his current accounting and financial systems are restricting that expansion. He also worries that RoR is not adequately prepared to face expected business risks. He has come to your firm for assistance.

Project Data

Summary of RoR Interviews $-$ a document with detailed descriptions of RoR's business processes based on interviews with employees

RoR data Download RoR data$-$ Data provided by the company in excel format that will serve as a source for your prototype Access database.

RoR Financial History Download RoR Financial History$-$ rudimentary prior year financial information for RoR

Instructions

Your supervisor met with Mason and discussed his requirements in detail. At that meeting, they agreed on the following deliverables for your project.

$1.$ Document RoR$$s process activity using BPMN$.$ After gaining an understanding of RoR$$s business processes, you will document current processes using business process modeling notation $($BPMN$).$ This involves documenting at least three current business processes. These should represent a business cycle, for example the Sales and Collections cycle. These diagrams will serve multiple purposes. RoR expects to use them to train new employees and they will provide information about potential improvements to those processes through the efficient use of information technology. Additionally, they will also highlight areas where RoR is exposed to unnecessary risks.

$2.$ Prepare an integrated data model using UML class diagrams and the REA framework. This data model will serve as the blueprint for RoR$$s prototype database that you will also develop. Also, prepare a corresponding table listing for the prototype database, including table names, attributes and primary and foreign keys.

$3.$ Prepare a prototype database for ROR. Mason has agreed to provide financial data from his business for the $1$st quarter of his fiscal year. That data will be in Excel format. You will move the data into Access, structure it appropriately, and set relationships consistent with your data model. Make changes as necessary in file structures to implement efficient tables and eliminate duplication.

$4.$ Prepare a detailed report of your findings and recommendations including both elements below.

Prepare financial reports using your database. You will prepare queries as necessary to provide the following reports and management information. Discuss the process you used to create these financial statements in your report including any recommendations you have on improving the process.

ROR income statement for the $1$st quarter.

Include income statements for each ROR store for the $1$st quarter. This can be combined with the overall income statement into one document by using multiple columns in a spreadsheet that total to the consolidated Income Statement in the final column.

ROR balance sheet as of the end of the $1$st quarter.

Analyze RoR$$s business and control risks in the documented processes and recommend improvements. Use the control and COSO principles we discussed in class to frame your discussion. Recommend changes to ROR business processes to make it more effective and efficient. You must suggest at least $3$ internal controls that RoR should implement in their process See specific details about these controls below.

At least one of these should be an application control $($i$.$e$.$ a control in the database application$)$

For any application control you suggest, you must implement the control in the database file you turn in and point out where I can find this control $($i$.$e$."$On the Orders and Sales Table, we $....")$

At least one of these should be a general business process control $($i$.$e$.$ bank reconciliations or segregation of duties$).$

Business process controls that you suggest should be documented on the relevant activity model showing a suggested or updated business process $($use colors or highlight the changes so they stand out from the "current" process$)$

Any business process control you document should also be added to your Team's sub process in Auditboard. It needs to show up on the control dashboard underneath your team. You need to fill out all relevant fields including Title, Description, Control Objective, Risk Level, Assertions, COSO Principles and assign a control owner $($someone on your team$)$

The third control can be either an application control or a business process control that you find relevant.