It would be great if u could make a power point slide, Thank you!
Processes northwest. You have been hired by Outdoor Adven- ture to evaluate their processes, risks, and internal controls. The following paragraphs describe Outdoor Adventure's revenue cycle procedures. Revenue Cycle SALES ORDER PROCESSING PROCEDURES. Customer orders are mailed or e-mailed to the sales department. When the order is received the sales clerk checks the customer's creditworthiness from a com- puter terminal by running a validation application. The credit-check program determines if the custo- mer's account is up-to-date regarding payments and the customer has not exceeded his or her credit limit. Computer controls in the application prevent further processing of any transactions that fails the credit check. Under certain extenuating circumstances, the credit manager may override the validation control. After the customer's credit is verified, the clerk then records the sales order through his computer terminal. A digital copy of the order is distributed to the warehouse and the shipping department term- inals for further processing. The computer system automatically records the sale in the sales journal. Finally, the clerk files the hard copy of the customer order in the sales department. The warehouse manager is prompted by receipt of the digital sales order on the warehouse terminal. The manager prints out two copies of order: the stock release and a shipping notice. Using the stock release copy, a warehouse clerk picks the selected items from the shelves and sends them to the shipping department along with stock release and the shipping notice. The warehouse manager then updates the inventory sub- sidiary ledger and the general ledger control account from his computer terminal. When the shipping clerk receives the goods, the stock release, and the shipping notice, he matches them to the corresponding digital sales order dis- played on his terminal. If everything matches, he prints out three hard copies of the bill of lading and a packing slip. Two copies of the bill of lading and the packing slip are sent, along with the goods, to the carrier. The stock release copy and the shipping notice are sent to the accounts receivable department. The third bill of lading copy is filed in the shipping department. Upon receipt of the stock release and shipping notice, the accounts receivable clerk manually cre- ates a hard-copy invoice, which is immediately mailed to the customer. After mailing the invoice. the clerk uses information on the stock release to update the accounts receivable subsidiary ledgerand general ledger from his computer terminal. After the records are updated. the clerk les the stock release and shipping notice in the accounts receivable department. Cash Receipts Procedures Customer payments come directly to the general mail room along with other mail items. The mail clerk sorts the mail. opens the customer payment envelope, removes the customer's check and remittance advice. and reconciles the two documents. To control the checks and remittance advices. the clerk manually prepares two hard copies of a remittance list. He sends one copy to the amounts receivable department. along with the conesponding remittance advices. The other copy of the remittance list accompanies the checks to the cash receipts department. Once the checks and remittance list arrive in the cash receipts department, the treasurer reconciles the documents. endorses the checks. and manually pre- pares three hard copies of a deposit slip. He then updates the cash receipts journal and the general led- ger from his computer terminal. Next. the treasurer sends the checks and two copies of the deposit slip to the bank. Finally, he les the third copy of the deposit slip and the remittance in the department. When the accounts receivable clerk receives the remittance list and remittance advices from the mail room. he reconciles the two documents. He then updates the accounts receivable subsidiary led- ger and the general ledger. Finally, he les the two documents in the department. C. TUTORIAL ASSIGNMENT 3 (to be submitted in WEEK 4) All Groups Hall J.A. 10th Edition Chapter 4, Internal Control Case 6 -"Outdoor Adventure" The As-Is DFD and SFC of Outdoor Adventure's O2C process (Sales Ordering and Cash Receipt Systems) will be emailed to you. REQUIRED 1. Identify internal control exposures and related risk, and design internal controls to mitigate risks identified. All are captured in a tabular format.(one PowerPoint slide only) Exposures Risk Internal Control 2. Design a To-Be system flow chart on 02C process with animation (2 PowerPoint slides only)
