l a rede- cu system that resolves the control weaknesses that you identified. Explain your solution. 3. GREEN POND NURSERY (STAND- ALONE PC-BASED ACCOUNTING SYSTEM) Green Pond Nursery Supply (GPNS) is a garden center wholesaler in eastern Pennsylvania that sells and distributes a wide range of garden products and equipment including organic fertilizers, premium flower and grass seeds, organic pesticides, and gar- den spreaders. GPNS's customers are primarily small garden centers and landscape companies in the Mid-Atlantic states. Sales are on credit. GPNS's current information system includes man- ual procedures supported by independent (non- networked) PCs in each department. Communica- tions between departments are entirely through hard-copy documents. Recently, GPNS has been receiving complaints from suppliers regarding pay- ment errors. Management believes that these com- plaints stem, in part, from their antiquated computer system. You have been hired to assess GPNS's proce- dures and internal controls. The following is a description of GPNS's expenditure cycle. Purchasing Process The purchasing agent receives an inventory status report from the inventory control department, which identifies the items that need to be reordered. The agent selects the suppliers, enters this informa-n creates a a due date tion into the computer terminal to create a digital updates the purchase order, and then prints three hard copies of Daily, the the purchase order. He sends one copy to the sup- ice records plier; one copy to the AP department, where it is at need to filed temporarily, and files the third copy in the pur- ment in the chasing department. pen vendor When the goods are received, the receiving copy of the department inspects and verifies them using the stem auto- packing slip, which is attached to the goods. The ccounts. receiving clerk manually prepares two hard copies of a receiving report. One copy accompanies the goods to the warehouse for storage. The receiving clerk sends the second copy to the purchasing agent rent system. who closes the open purchase order. The purchase ing system. agent then forwards the receiving report to the inven- weaknesses tory control clerk. The inventory control clerk receives the receiving of a rede- report and updates the inventory subsidiary. At the solves the close of business, the clerk prepares an inventory sum- 1. Explain mary, which he sends to the general ledger clerk. Accounts Payable and Cash Disbursements Procedures TAND- TING The AP clerk receives the supplier's invoice and reconciles it with the purchase order in the tempo- rary file. From her computer terminal, the clerk is a garden records the purchase in the purchases journal and ia that sells records the liability by adding a, record to the AP en products subsidiary ledger. The purchases order and invoice rs. premium are then filed in the department. es, and gar- Each day, the AP clerk visually searches the AP e primarily subsidiary ledger from her terminal for invoices that panies in the are due to be paid. The clerk prepares the check and records it in the digital check register. The negotiable cludes man- portion of the check is mailed to the vendor, and a ndent (non- check copy is filed. The clerk then closes the liability Communica- in the AP subsidiary ledger and prepares a journal ely through voucher, which she sends to the general ledger clerk. S has been Upon receipt of the inventory summary and jour- garding pay- nal voucher, the general ledger clerk updates the these com- inventory control, AP control, and cash accounts. ed computer PNS's proce- Required lowing is a a. Create a data flow diagram of the current system. b. Create a system flowchart of the existing system. c. Analyze the physical internal control weaknesses in the system. entory status d. (Optional) Prepare a system flowchart of a rede- department, signed computer-based system that resolves the be reordered, control weaknesses that you identified, Explain this informa- your solution