Kindly provide answer and supporting workings for Qn 1b & Qn 3a,3b for ACC217.

ACC217 Accounting Information Systems Assignment 2 - Group-based Assignment January 2017 Presentation ACC217 Assignment 2 Group-based Assignment This assignment is worth 30% of the final mark for ACC217 Accounting Information Systems. The cut-off date for this assignment is 12 April 2017, 2355 hrs. This is a group-based assignment. You should form a group of 3 members from your seminar group. Each group is required to upload a single report to Canvas via your respective seminar group. Please elect a group leader. The responsibility of the group leader is to upload the report on behalf of the group. It is important for each group member to contribute substantially to the final submitted work. All group members are equally responsible for the entire submitted assignment. If you feel that the work distribution is inequitable to either yourself or your group mates, please highlight this to your instructor as soon as possible. Your instructor will then investigate and decide on any action that needs to be taken. It is not necessary for all group members to be awarded the same mark. Take note of the following format and writing requirements. Marks will be penalised for failure to follow requirements. Format requirements: A properly formatted cover page: To include course code, course title, assessment title, student name(s), student PI Number(s). For text, Font style: Times New Roman; Font size: 12; Line spacing: 1.5 lines. Include the page number on each page. Reference or bibliography at the end (use APA referencing guidelines). Writing requirements: Develop your points in a clear, logical and succinct manner. Be mindful of the target audience/reader. Use language appropriate to the reader's expected level of knowledge. Free from grammatical and typographical errors. Provide in-text citations when referencing (use APA referencing guidelines). Include less relevant details as an appendix if necessary. Good overall presentation of the report. ___________________________________________________________________________ SIM UNIVERSITY Assignment 2 - Page 2 of 4 ACC217 Assignment 2 Question 1 (a) Briefly describe a business process in which one of the group members is part of. Suggest reasons of why there may be objections to documentation of that business processes and explain the importance of documentation. Explain if you think that the process should be documented. (25 marks) (b) Analyse the following business process and draw a flowchart describing it. Lucy is an employee at ACE.com who needs to purchase a new laptop. She pulls up the purchase requisition form from the company's intranet system and fills in the appropriate information. The system will check that her purchase requisition must not be more than $5,000 dollars. When completed, she then sends the completed electronic form to her supervisor for approval. An email is triggered to her supervisor. On receiving the email, her supervisor Mary, approves the request and clicks the \"Submit\" button to forward Lucy's request electronically to the purchasing department. A purchasing agent creates an electronic purchase order (stored in a separate database from the purchase requisitions) based on the information Lucy provided. The agent consults the electronic vendor file to locate an authorized vendor for the requested laptop. The AIS then sends an electronic version of the order to the receiving department. One hardcopy of the order is sent to the vendor while the other copy is filed into Purchase Order file. (20 marks) Question 2 You are part of the internal audit team in a private education institution. The following lapses were reported during an audit of a centralized payment and payroll processing system. Draft a report to the management committee identifying for each lapse, the risk involved and suggest preventive, detective and corrective controls that can be implemented. (a) Access rights were not granted on a need basis but an entire module. (b) Delay in removing access rights of officers who no longer needed them. (c) No periodic reviews of user accounts, including those of privileged users. (d) No review of activity logs of privileged users. (25 marks) SIM UNIVERSITY Assignment 2 - Page 3 of 4 ACC217 Assignment 2 Question 3 Ace Design has a revenue process cycle as follows: Sales Order Entry Shipping Billing Cash Collections The following scenarios were noticed. (i) (ii) (iii) Sales Order Entry (Head Office) Sales managers are able to enter items that are not within the stock master data. Sales managers are able to enter sales order and approve them as well. Shipping (Factory) Items were picked and loaded directly into the delivery truck without verification. Defective items were returned but not updated in delivery receipt. Billing (Head Office) (iv) Billing invoices are manually triggered by the finance team. Cash Collections (Head Office) Collection of Cash but receipts were not issued. Cheques received were banked in once the cheque number is recorded in the invoice. (a) Analyse the revenue process cycle scenarios and advise ACE of the threats and security issues that might surface. (15 marks) (b) Describe how these issues could be mitigated using control principles. (15 marks) ---- END OF ASSIGNMENT ---- SIM UNIVERSITY Assignment 2 - Page 4 of 4 "IO-2:- StarHub 46 10:40 AM This becomes the Activity swimlane / Function. In this example, this is the accounts payable clerk. Step 2: What actions do the function or personnel does? {... has to prepare a cheque for payment. He manually prepares the cheque from data on an invoice. The cheque is sent to the vendor, while the invoice is filed} -> These are the (manual) processes carried out within the swimlane. Please verify if they are done manually, i.e., document or by computer, i.e., system. Step 3: What inputs or outputs are involved with the actions? {... has to prepare a cheque for payment. He manually prepares the cheque from data on an invoice. The cheque is sent to the vendor, while the invoice is filed} -> This set of information tells us what input document, outputs and storages/files are used as part of the processes. 11 Narrating Flowchart Ex 1 Customer sends in credit application and staff checks the application form for completeness. 12 Narrating Flowchart Ex 2 Warehouse staff uses sales order form to pick goods. The staff enters the items picked into the inventory control system and updates the inventory file. Next, the staff prepares the delivery order (four copies). The staff sends one copy of the delivery order to the customer, files two copies with the sales order and forwards one copy of the delivery order. 13 Narrating Flowchart Ex 3 Warehouse employee receives packing slip from vendor. The employee retrieves the Purchase Order (PO) and uses that to check the goods received by verifying it against the packing slip. Next, the employee prepares the goods receipt report by updating the Inventory Master File and Good Receipt File. Once that is done, the employee files the packing slip and PO together. 14 Case Study (1) Sdata, a vendor, sends an invoice to Accuflow for data warehousing support services. The invoice is sent directly to Megan Walters, the accounts payable clerk, who manually records the invoice in the accounts payable subsidiary ledger. Once the invoice is recorded, it is forwarded to Stan Philips, the cash disbursement clerk, for processing. Stan prepares a cheque to pay the invoice and sends the cheque and invoice to John Sterling, the company treasurer. John approves and signs the cheque and cancels the invoice. John then mails the cheque back to Sdata and returns the cancelled invoice to Stan for recording in the cash disbursement journal and filing. Once a week, Megan manually posts disbursements from the cash disbursement journal to the accounts payable subsidiary ledger. 15 Answer to Case Study (1) 16 Quiz 1. Which of the following statements below shows the contrast between data and information? a) Data is the output of an AIS. b) Information is the primary output of an AIS. c) Data is more useful in decision-making than information. d) Data and information are the same. 17 Quiz 2. Data must be converted into information to be considered useful and meaningful for decision-making. There are six characteristics that make information both useful and meaningful. If information is free from error or bias and accurately represents the events or activities of the organisation, it is representative of the characteristic of a) relevancy. b) timeliness. c) understandability. d) reliability. 18 Quiz 3. A well-designed AIS can improve the decision-making function within the organisation. Which statement below would describe a limitation, rather than a benefit, of an efficient AIS? a) An AIS reduces uncertainty, and therefore accounting information can provide a basis for choosing among alternative courses of action. b) An AIS identifies situations requiring management action. c) An AIS provides to its users an abundance of information without any filtering or condensing of such information. d) An AIS provides information about the results of previous decisions which provides decision makers with feedback that can be used in future decision making. 19 Quiz 4. Inventory information is provided in real time by a firm's accounting information system. The accuracy of this information is questionable, however, since the production manager often reports stock outs of components that the system indicates are in stock. Which of the following characteristics of useful information is absent in the situation described above? a) Relevant b) Reliable c) Complete d) Timely e) Understandable f) Verifiable g) Accessible 20 Quiz 5. An ERP system might facilitate the purchase of direct materials by all of the following except a) selecting the best supplier by comparing bids. b) preparing a purchase order when inventory falls to reorder point. c) routing a purchase order to a purchasing agent for approval. d) communicating a purchase order to a supplier. 21 Quiz 6. The general ledger a) summarises the transactions in journals. b) only includes balance sheet accounts. c) is posted in total to the general journal. d) is the initial place to record depreciation expense. 22 Quiz 7. Which step below is not considered to be part of the data processing cycle? a) data input b) feedback from external sources c) data storage d) data processing 23 Quiz 8. When preparing a document flowchart, the names of organisational departments or job functions should appear in the a) column headings. b) right-hand margin. c) written narrative accompanying the flowchart. d) title of the flowchart. 24 Quiz 9. Which is a true statement regarding the use of the manual processing symbol in a flowchart? a) If a document is moved from one column to another, show the document only in the last column. b) Each manual processing symbol should have an input and an output. c) Do not connect two documents when moving from one column to another. d) Use a manual processing symbol to indicate a document being filed. 25 Quiz 10. In a document flowchart of a manual payroll processing system, "update employee file" will be shown by a(n) ________ symbol, and "prepare payroll check" will be shown by a(n) ________ symbol. a) input; output b) input; manual operation c) manual operation; output d) manual operation; manual operation 26 Case Study (2) Flow Inc. processes its payment on account in the following manner :1. Each morning, a mail clerk in the Accounting Dept opens the mail and prepares a remittance advice (showing customer and amount paid) if one is not received together with the cheque. 2. The cheques and remittance advices are forwarded to Accounting Supervisor. 3. The Accounting Supervisor will review all cheques for payments on pastdue accounts and forward the 2 documents to the Accounts Receivable Clerk. 4. The Accounts Receivable Clerk will update the Accounts Receivable Ledger System with the amount received and endorse the cheques for deposit to the bank. 5. The AR Clerk will then prepare the daily deposit slip in triplicate. The first and second copy will accompany the cheques to be deposited. The third copy will be filed with the remittance advices by date. 27 Answer to Case Study(2) Accounting Supervisor Mail Clerk Customer Cheque Remittance Advice Open mail Accounts Receivable Clerk Reviewed Cheque Remittance Advice Update Accounts Receivable with amount Review if pastdue accounts Accounts Receivable Ledger Remittance Advice Avail? Cheque Remittance Advice Prepare Remittance Advice Reviewed Cheque Remittance Advice Reviewed Cheque Remittance Advice Endorse cheques and prepare daily deposit in triplicate Remittance Advice (3) Daily Deposit Endorsed Cheque (1) Daily Deposit (2) Daily Deposit D END 28 Case Study (3) Flow Inc. reconciles its payment with the bank in the following manner :1. In the afternoon, the Accounts Receivable(AR) Clerk will receive any cheques that were returned by the bank. 2. The AR Clerk enters the returned cheque details into the Accounts Receivable Ledger System and prints out the Debit advice in duplicate from the system. The first copy of the Debit advice is file in date sequence. 3. The cheque and second copy of the debit advice are forwarded to Accounting Supervisor for verification. 4. The Accounting Supervisor will review the advice and cheque and pass them to the mail clerk. 5. The Mail clerk will prepare envelopes with the customer addresses, slot the advice and cheque into the envelope and post them out. 29 Answer to Case Study(3) Accounts Receivable Clerk Bank Returned Cheque Returned Cheque (2) Debit Advice Update returned cheque details (1) Debit Advice (2) Debit Advice Returned Cheque Accounting Supervisor Accounts Receivable Ledger Verify that cheque and Debit advice are correct Returned Cheque D Mail Clerk Returned Cheque (2) Debit Advice Prepare envelopes with the customer addresses Slot advice & cheque into the envelope and post them out. (2) Debit Advice END 30 Quiz 1. Which is the most appropriate description a) Statements are prepared and sent to customers from data contained in the accounts receivable data store. b) A cheque is manually prepared from data on a vendor invoice. c) A sales order is prepared manually. Copy 1 is sent to the warehouse and Copy 2 is filed. d) A report is prepared from data stored on magnetic tape. e) Data from a cancelled invoice are used to update the cash disbursement ledger. 31 Quiz 2. Which is the most appropriate description a) Billing data are entered online and used to update the sales order file and the customer master file. b) A cheque is manually prepared from data on a vendor invoice. c) A sales order is prepared manually. Copy 1 is sent to the warehouse and Copy 2 is filed. d) A report is prepared from data stored on magnetic tape. e) Data from a cancelled invoice are used to update the cash disbursement ledger. 32 Quiz 3. Which is the most appropriate description a) Billing data are entered online and used to update the sales order file and the customer master file. b) A cheque is manually prepared from data on a vendor invoice. c) A sales order is prepared manually. Copy 1 is sent to the warehouse and Copy 2 is filed. d) A report is prepared from data stored on magnetic tape. e) Data from a cancelled invoice are used to update the cash disbursement ledger. 33 Quiz 4. Which is the most appropriate description a) Billing data are entered online and used to update the sales order file and the customer master file. b) An accounts receivable aging report is prepared from the accounts receivable master file and cash receipts master file, both stored on disk. c) A sales order is prepared manually. Copy 1 is sent to the warehouse and Copy 2 is filed. d) A report is prepared from data stored on magnetic tape. e) Data from a cancelled invoice are used to update the cash disbursement ledger. 34 Quiz 5. Which is the most appropriate description a) Billing data are entered online and used to update the sales order file and the customer master file. b) A cheque is manually prepared from data on a vendor invoice. c) A sales order is prepared manually. Copy 1 is sent to the warehouse and Copy 2 is filed. d) A report is prepared from data stored on magnetic tape. e) A sales invoice is manually prepared and sent to a customer. 35 The End 36 ACC217 Accounting Information Systems SEMINAR 1 School of Business 2016 SIM University. All rights reserved. 1 AC2401 Slide no: 2 Seminar 1 NBS/NTU. All rights reserved. ACC217 Accounting Information Systems School of Business Information Needs & Business Processes 2 Information Needs Suppliers Customers Make Payment Receive Payment Raw materials Goods & Services & Supplies Organization Material flow is only one side of Business The other side is information flow 3 Information Needs 4 Transactions A transaction is a business event. Financial transactions economic events that affect the assets and equities of the organization e.g., purchase of an airline ticket Financial Transactions Nonfinancial transactions all other events processed by the organization's information system e.g., an airline reservation no commitment by the customer Nonfinancial Transactions 5 Transactions User Decision Making Information Financial Transactions Information System Nonfinancial Transactions 6 Distinguishing between Organizational Functions and Business Processes 7 Organization Functions Examples of functional areas of operation and their business functions Human resources Marketing & Sales Accounting Product Marketing Financial accounting Sales order Payments receipt Sales forecasting Payment to suppliers Payroll Advertising Cost allocation and control Benefits and remuneration Customer Support Planning and budgeting Compliance Cash-flow management Development CRM & Finance Recruitment and hiring Procurement Purchasing goods and materials Training Receiving goods and materials Logistics and transportation Maintenance 8 Business Process Definition: Collection of activities that takes one or more kinds of input and creates an output that is of value to customer Motivation: Thinking in terms of business processes helps managers to look at their organization from the customer's perspective 9 Business Process Purchasing a laptop from a store Store Sales Payment Finance Request to purchase Fulfillment Sales Order Receipt of computer Confirmation Warehouse Customer Care 10 Business Process Purchasing a laptop from a store Logistics Function Production Function Purchasing Function Accounting Function Sales Function Customer order process Material fulfillment process 11 Recap Define the following key terms using your own words: Terms Definitions Data Raw facts or statistics that, absent a context, may have little meaning Information Data organised in a meaningful way to the users Transaction Event that effects a change in the asset, liability, or net worth account. Transactions are recorded first in journal and then posted to a ledger. Business Process A defined sequence of business activities that use resources to transform specific inputs into specifics outputs to achieve a business goal 12 Information needs between Organizational Functions in integrated Business Processes 13 Laptop Computer Purchase Process Information Needs What information is required to coordinate the different functional areas to achieve efficient and effective purchase process? How would an information system improve this integration and coordination? Information? Information Systems Logistics Function Production Function Information? Information? Purchasing Function Accounting Function Sales Function Information? Information? Information? 14 Consider Sales and Marketing functions What does Sales and Marketing do? Developing products Determining pricing Promoting products to customers Taking customers' orders Helping create a sales forecast How do they interact with other functions? Logistics Customers C Cooppyyrriigghhtt 220011 Inventory Delivery Sales Orders Status of orders Forecasts of orders Availability of products Production HR Hiring Job Information Sales and Marketing Sales orders data Cost and Profit data Accounting 15 Information needs across ValueChain 16 The Value Chain - Michael Porter Definition: Series of activities performed to add value to product or service Firm Infrastructure (Administration & Management) Human Resources Technology Purchasing / Procurement Inbound Logistics Operations Sales and Marketing Service Outbound Logistics Source: Porter, Michael E.(1980) "Competitive Strategy" 17 Value Chain Integration and information needs Smith Supply Co. Inbound Logistics Operations Outbound Logistics Marketing & Sales Service The linking of these separate value chains creates a larger system known as a supply chain. Pharmaceuticals, Inc. Inbound Logistics Operations Outbound Logistics Marketing & Sales Service Synergistic linkages between Information Systems of participating companies enables improvements in the performance of each company's value chain. Customer Pharmacy Inbound Logistics Operations Outbound Logistics Marketing & Sales Service 18 Activity List key decisions, information needs, & challenges for the sales process: Key Decision Information Needs Challenges Taking customers' orders Location of customers, Preference of Customers Availability to take order Customers' creditability Customers' available credit limit Accuracy of the customers' available credit limit Inventory availability Availability of stock, Location of stock Accuracy of the stock information and its location Shipping customers' orders Location of customers, Preference of Customers Availability to transport Availability of customers 19 Recap A transaction is a business event. Organizations need to make sense of flow of events within functions Functions need to have timely flow of information across each other to coordinate and manage both internal and value-chain related processes 20 AC2401 Slide no: 2 NBS/NTU. All rights reserved. Seminar 1 ACC217 Accounting Information Systems Copyright 2015 Adrian Yeow School of Business AIS, ERP, MIS? Alphabet Soup 21 AIS VS MIS 22 AIS versus MIS Accounting Information Systems (AIS) - Deals with financial transactions; e.g., sale of goods - AND nonfinancial transactions that directly affect the processing of financial transactions; e.g., addition of newly approved vendors Management Information Systems (MIS) - nonfinancial transactions that are not normally processed by traditional AIS; e.g., tracking customer complaints 23 AIS versus MIS? IS AIS GLS/FRS TPS MIS MRS Finance Marketing Production HRS Distribution 24 AIS Subsystems Transaction processing system (TPS) - supports daily business operations General Ledger/ Financial Reporting System (GL/FRS) - produces financial statements and reports Management Reporting System (MRS) - produces special-purpose reports for internal use 25 AIS Subsystems Management Reporting System (MRS) - produces special-purpose reports for internal use General Ledger/ Financial Reporting System (GL/FRS) - produces financial statements and reports Transaction processing system (TPS) - supports daily business operations 26 Transaction Processing System Example of Transaction Processing System What type of transaction information are we gathering here? 27 Transaction Processing System Example of Transaction Processing System What type of transaction information are we gathering here? 28 General Ledger/ Financial Reporting System (GL/FRS) General Ledger/ Financial Reporting System (GL/FRS) 29 Management Reporting System (GL/FRS) Management Reporting System Dashboard system is one interactive method for management to make sense of their company's operation status 30 Enterprise Resource Planning (ERP) Systems A combination of AIS and MIS IS AIS GLS/FRS TPS ERP MRS MIS Finance Marketing Production HRS Distribution By integrating different systems within an org., ERP removes problems of Data redundancies Data discrepancies Inefficiencies and errors in processes 31 Enterprise Resource Planning (ERP) Systems 32 Enterprise Resource Planning (ERP) Systems Other advantages Single-view of organization's data and financial situation; better visibility for management Data entered once into the system Greater security with unified access controls Standardization of processes and reports Possibility of real-time data updates 33 Enterprise Resource Planning (ERP) Systems Significant risks of ERP 1. Data integration challenges: internal and external 2. Significant financial costs and time investment 3. Complexity of system 4. Data conversion 5. Organizational resistance 34 Cloud-based ERP systems Cloud-computing ... e.g., 35 Recap List the different modules typically found in an ERP & describe their key functions.: ERP Modules Definitions Financial General ledger and reporting system for preparation of managerial reports and financial statements Human resources, employee benefits, etc. HR & Payroll Sales and Distribution Customer relationship management Purchase to pay (Procurement) Manufacturing (Production) Systems tools Reporting and Analytics 36 Recap AIS vs MIS AIS subsystems ERP as an integrated AIS & MIS 37 AC2401 Slide no: 2 Seminar 1 NBS/NTU. All rights reserved. ACC217 Accounting Information Systems School of Business Flowcharts 38 What is a Flowchart? 39 What is a Flowchart ? A flowchart is an analytical technique that describes some aspect of an information system in a clear, concise, and logical manner Flowcharts use a set of standard symbols to depict processing procedures and flow of data Flowcharts are developed during detailed analysis and design stages of the system and process development 40 System Flowchart A type of flowchart for modeling business process Models relationships between key components of the process - inputs, sources, key programs, outputs, etc. Enables accountant/auditor to understand how an AIS works and to evaluate the controls in the AIS Can be drawn freehand with drawing templates or with software such as Visio and Powerpoint 41 Flowchart Symbols Input and Output: indicate type of device or media that provides input to or records output from a process Processing: indicate type of device used to process data or whether data is processed manually Storage: indicate type of device used to store data while system is not using it Flow/Misc.: flow of data beginning or end of flowchart explanatory note 42 Input/Output Symbols Document = a document or report that is prepared by hand or printed by a computer Multiple Copies of One Document = copies should be numbered in the upper, righthand corner. Journal/Ledger = any input or output on a program flowchart; accounting journals or ledgers in a document flowchart. Display = information displayed by an online output device such as a terminal, monitor, or screen. Online Keying = data entry by an online device such as a terminal or personal computer. Copyright 2015 Adrian Yeow Terminal or Personal Computer = combines the display and online keying symbols to represent terminals and personal computers Transmittal Tape = manually prepared control totals which are to be compared to computer totals for control purposes. 43 Processing Symbols Computer Processing symbol represents a process performed by a computer, which usually results in a change in data or information. Manual Operation symbol represents a processing operation that is performed manually. Auxiliary Operation represents a processing operation carried out by a device other than a computer, e.g., an optical character scanner. 44 Storage Symbols Magnetic disk symbol represents data stored permanently on a magnetic disk. Frequently used to represent master files and databases. File symbol represents a file of documents that are manually stored and retrieved. Letter indicates the ordering sequence: A = alphabetic order; D = date order; N = numeric order. 45 Flow And Misc. Symbols Flow = direction of processing, or flow of document and/or data/information. Normal flow is top to bottom and left to right. On-page connector = connects processing from one location to another on the same page. Used to avoid crisscrossing lines. Off-page connector = connects processing flow between two different pages. Signals exit from one page and continuation on next page. Terminal = represents beginning or end of a process or program. Also used to indicate an external party. Decision = a decision-making step. Used in a program flowchart to show branching to alternate paths . Annotation = provides for the addition of descriptive comments or explanatory notes as clarification. 46 Flowcharting Guidelines Identify: Internal entities which do the work - e.g. departments, specific people, computer External entities (sources of inputs and destinations for outputs) - e.g. customer, supplier Documents or information flows Processes/activities Draw one column for each internal entity 47 Flowcharting Guidelines Use standard flowcharting symbols As much as possible, flow should go from top to bottom and left to right Clearly label all symbols Use annotations if necessary to provide explanations, e.g. for clarification Flowchart normal course of operations - exclude exceptions unless critical 48 Flowcharting Guidelines Flowchart should have clear beginning and end Show where each document originates and its final disposition. Read through narrative and for each step define: What was (were) the input(s) What process was carried out What was (were) the output(s) 49 Flowcharting Example Example of Input -> Process -> Output Identifies where input is coming from Inputs Process Output to storage Copyright 2015 Adrian Yeow 50 Flowcharting Guidelines Do not show process symbols for: Forwarding a document to another entity Filing a document Do not connect two documents except when forwarding to another column. When a document is forwarded, show it in both locations. 51 Forwarding Documents Forwarding a document Show forwarded Copyright 2015 Adrian Yeow document in both locations 52 Flowcharting Guidelines Show on-page connectors and label them clearly to avoid excess flow lines. Use off-page connectors if the flow goes to another page. A A Pg2 /A Pg1 /A 53 On-Page & Off-Page Connectors On-page connector Off-page connector Copyright 2015 Adrian Yeow On-page connector 54 Flowcharting Tips! Sequential processing steps with no delay between them can be combined. update update & print print 55 Flowcharting Tips! Common errors access to computer file must be through a computer process Update & print wrong right Manual process should not be linked to computer process symbols 56 Flowcharting Tips! Do not connect documents directly wrong right 57 Flowcharting Tips! Emails: Just use annotation on flow line Differentiate between personal information system (e.g., Microsoft office) versus business information system: only model business IS 58 Flowcharting Tips! Reports printed must be shown in computer column first, unless printed remotely Computer Branch Office print invoice Summary report 59 Flowcharting Guidelines Automated Systems Scanning and emailing a document to customer Recording and Sending an excel file 60 Flowcharting Guidelines Automated Systems Receiving an excel file 61 Recap Fill up the tables with the relevant answers :Symbol Name of Type Description Symbol Document Input / Output document or report that is prepared by hand or printed by a computer Online Keying Input / Output data entry by an online device such as a terminal or personal computer. Manual Operation Processing a processing operation that is performed manually. 62 Recap Fill up the tables with the relevant answers :Symbol Name of Symbol Type Description . 63 Reading Flowcharts Ex 1 Fill up the tables with the relevant answers :Symbol / Name Description External Entity / Terminal Departments Activity swim-lane / Function Payroll Input document(s) Time Cards, Tax Tables Manual process Prepare paycheques & payroll; update file Files Not stated, A/D Outputs Time cards (2x), Payroll register (2x), Employee checks 64 Reading Flowcharts Ex 2 Fill up the tables with the relevant answers :Symbol / Name Description External Entity / Terminal Activity swim-lane / Function Input document(s) Manual process Files Outputs 65 Drawing flowcharts 1. The accounts payable clerk has to prepare a cheque for payment. He manually prepares the cheque from data on an invoice. The cheque is sent to the vendor, while the invoice is filed. Step 1: WHO is involved? Step 2: What actions do the function or personnel does? Step 3: What inputs or outputs are involved with the actions? 66 Drawing flowcharts - solution Step 1: WHO is involved? {The accounts payable clerk has to ...}.-> This becomes the Activity swimlane / Function. In this example, this is the accounts payable clerk. Step 2: What actions do the function or personnel does? {... has to prepare a cheque for payment. He manually prepares the cheque from data on an invoice. The cheque is sent to the vendor, while the invoice is filed} -> These are the (manual) processes carried out within the swimlane. Please verify if they are done manually, i.e., document or by computer, i.e., system. Step 3: What inputs or outputs are involved with the actions? {... has to prepare a cheque for payment. He manually prepares the cheque from data on an invoice. The cheque is sent to the vendor, while the invoice is filed} -> This set of information tells us what input document, outputs and storages/files are used as part of the processes. 67 Narrating Flowchart Ex 1 Customer sends in credit application and staff checks the application form for completeness. 68 Narrating Flowchart Ex 2 Warehouse staff uses sales order form to pick goods. The staff enters the items picked into the inventory control system and updates the inventory file. Next, the staff prepares the delivery order (four copies). The staff sends one copy of the delivery order to the customer, files two copies with the sales order and forwards one copy of the delivery order. 69 Narrating Flowchart Ex 3 70 Case Study (1) Sdata, a vendor, sends an invoice to Accuflow for data warehousing support services. The invoice is sent directly to Megan Walters, the accounts payable clerk, who manually records the invoice in the accounts payable subsidiary ledger. Once the invoice is recorded, it is forwarded to Stan Philips, the cash disbursement clerk, for processing. Stan prepares a cheque to pay the invoice and sends the cheque and invoice to John Sterling, the company treasurer. John approves and signs the cheque and cancels the invoice. John then mails the cheque back to Sdata and returns the cancelled invoice to Stan for recording in the cash disbursement journal and filing. Once a week, Megan manually posts disbursements from the cash disbursement journal to the accounts payable subsidiary ledger. 71 Quiz 1. Which of the following statements below shows the contrast between data and information? a) Data is the output of an AIS. b) Information is the primary output of an AIS. c) Data is more useful in decision-making than information. d) Data and information are the same. 72 Quiz 2. Data must be converted into information to be considered useful and meaningful for decision-making. There are six characteristics that make information both useful and meaningful. If information is free from error or bias and accurately represents the events or activities of the organisation, it is representative of the characteristic of a) relevancy. b) timeliness. c) understandability. d) reliability. 73 Quiz 3. A well-designed AIS can improve the decision-making function within the organisation. Which statement below would describe a limitation, rather than a benefit, of an efficient AIS? a) An AIS reduces uncertainty, and therefore accounting information can provide a basis for choosing among alternative courses of action. b) An AIS identifies situations requiring management action. c) An AIS provides to its users an abundance of information without any filtering or condensing of such information. d) An AIS provides information about the results of previous decisions which provides decision makers with feedback that can be used in future decision making. 74 Quiz 4. Inventory information is provided in real time by a firm's accounting information system. The accuracy of this information is questionable, however, since the production manager often reports stock outs of components that the system indicates are in stock. Which of the following characteristics of useful information is absent in the situation described above? a) Relevant b) Reliable c) Complete d) Timely e) Understandable f) Verifiable g) Accessible 75 Quiz 5. An ERP system might facilitate the purchase of direct materials by all of the following except a) selecting the best supplier by comparing bids. b) preparing a purchase order when inventory falls to reorder point. c) routing a purchase order to a purchasing agent for approval. d) communicating a purchase order to a supplier. 76 Quiz 6. The general ledger a) summarises the transactions in journals. b) only includes balance sheet accounts. c) is posted in total to the general journal. d) is the initial place to record depreciation expense. 77 Quiz 7. Which step below is not considered to be part of the data processing cycle? a) data input b) feedback from external sources c) data storage d) data processing 78 Quiz 8. When preparing a document flowchart, the names of organisational departments or job functions should appear in the a) column headings. b) right-hand margin. c) written narrative accompanying the flowchart. d) title of the flowchart. 79 Quiz 9. Which is a true statement regarding the use of the manual processing symbol in a flowchart? a) If a document is moved from one column to another, show the document only in the last column. b) Each manual processing symbol should have an input and an output. c) Do not connect two documents when moving from one column to another. d) Use a manual processing symbol to indicate a document being filed. 80 Quiz 10. In a document flowchart of a manual payroll processing system, "update employee file" will be shown by a(n) ________ symbol, and "prepare payroll check" will be shown by a(n) ________ symbol. a) input; output b) input; manual operation c) manual operation; output d) manual operation; manual operation 81 Case Study (2) Flow Inc. processes its payment on account in the following manner :1. Each morning, a mail clerk in the Accounting Dept opens the mail and prepares a remittance advice (showing customer and amount paid) if one is not received together with the cheque. 2. The cheques and remittance advices are forwarded to Accounting Supervisor. 3. The Accounting Supervisor will review all cheques for payments on pastdue accounts and forward the 2 documents to the Accounts Receivable Clerk. 4. The Accounts Receivable Clerk will update the Accounts Receivable Ledger System with the amount received and endorse the cheques for deposit to the bank. 5. The AR Clerk will then prepare the daily deposit slip in triplicate. The first and second copy will accompany the cheques to be deposited. The third copy will be filed with the remittance advices by date. 82 Case Study (3) Flow Inc. reconciles its payment with the bank in the following manner :1. In the afternoon, the Accounts Receivable(AR) Clerk will receive any cheques that were returned by the bank. 2. The AR Clerk enters the returned cheque details into the Accounts Receivable Ledger System and prints out the Debit advice in duplicate from the system. The first copy of the Debit advice is file in date sequence. 3. The cheque and second copy of the debit advice are forwarded to Accounting Supervisor for verification. 4. The Accounting Supervisor will review the advice and cheque and pass them to the mail clerk. 5. The Mail clerk will prepare envelopes with the customer addresses, slot the advice and cheque into the envelope and post them out. 83 Quiz 1. Which is the most appropriate description a) Statements are prepared and sent to customers from data contained in the accounts receivable data store. b) A cheque is manually prepared from data on a vendor invoice. c) A sales order is prepared manually. Copy 1 is sent to the warehouse and Copy 2 is filed. d) A report is prepared from data stored on magnetic tape. e) Data from a cancelled invoice are used to update the cash disbursement ledger. 84 Quiz 2. Which is the most appropriate description a) Billing data are entered online and used to update the sales order file and the customer master file. b) A cheque is manually prepared from data on a vendor invoice. c) A sales order is prepared manually. Copy 1 is sent to the warehouse and Copy 2 is filed. d) A report is prepared from data stored on magnetic tape. e) Data from a cancelled invoice are used to update the cash disbursement ledger. 85 Quiz 3. Which is the most appropriate description a) Billing data are entered online and used to update the sales order file and the customer master file. b) A cheque is manually prepared from data on a vendor invoice. c) A sales order is prepared manually. Copy 1 is sent to the warehouse and Copy 2 is filed. d) A report is prepared from data stored on magnetic tape. e) Data from a cancelled invoice are used to update the cash disbursement ledger. 86 Quiz 4. Which is the most appropriate description a) Billing data are entered online and used to update the sales order file and the customer master file. b) An accounts receivable aging report is prepared from the accounts receivable master file and cash receipts master file, both stored on disk. c) A sales order is prepared manually. Copy 1 is sent to the warehouse and Copy 2 is filed. d) A report is prepared from data stored on magnetic tape. e) Data from a cancelled invoice are used to update the cash disbursement ledger. 87 Quiz 5. Which is the most appropriate description a) Billing data are entered online and used to update the sales order file and the customer master file. b) A cheque is manually prepared from data on a vendor invoice. c) A sales order is prepared manually. Copy 1 is sent to the warehouse and Copy 2 is filed. d) A report is prepared from data stored on magnetic tape. e) A sales invoice is manually prepared and sent to a customer. 88 Recap Flowcharting is a systematic technique used for business process analysis Know the broad categories: input/output, process, storage, and flows Practice, practice, and practice - only way to internalize the guidelines 89 The End 90