Operating Procedures Client Services, Billings and Cash Collections Prospective new clients may come from existing partner contacts, may be introduced by staff or current clients, or may simply telephone or write to the office. After discussion at a partners meeting, the decision to accept prospective clients is taken by Richard Ash, who completes a New Client Form recording details, assigns an account code (often referred to as a client code), and designates a partner (possibly himself) as the Client Partner. Richard files these forms by client code. He sends a copy of each form to Sarah Holly, who opens a new client file; Sarah maintains a separate alphabetical sequence of these files on behalf of each partner. Client Partners are responsible for agreeing details of assignments for their clients, which are summarized in a Letter of Agreement sent to the client. Key details, including an initial time budget, are summarized on a New Assignment Form, which is signed by the Client Partner and approved and signed by David Elm, before being added to the client file along with a copy of the Letter of Agreement. A copy of the New Assignment Form is sent to Amy Rowan; Amy uses it to assign a manager and staff before filing the form by assignment deadline. For certain assignments (e.g., audits) Richard Ash also designates one of the partners as Review Partner. Account codes are the central feature of time recording and accounting within the firm: they are used to track all time spent, on both client service and internal activities, by all members of staff, as well as all expenses incurred and fees received. The firm uses a series of eight digit codes formed as follows: the first four digits are unique client or activity identifiers; the next two digits identify the type of assignment (bookkeeping, financial statement compilation, auditing, tax preparation, etc.); the seventh digit is a sequence code used only in rare instances when the firm is carrying out multiple assignments of the same type for the same client otherwise it is set at 1; finally, since correct use of account codes is essential and errors need to be detected and corrected early on, the eighth digit is a mod-10 check digit (based on the Luhn algorithm used for credit cards, etc.). As regards the first four digits: codes in the sequence 00000999 are not used; codes in the sequence 10007999 are reserved for client work; codes in the sequence 80008999 are used for training courses (with the activity identifier fixed at 88); and codes in the sequence 90009999 are for other non-chargeable activities including office administration (with the activity identifier fixed at 99). For example, the very first client assignment, a bookkeeping job, was assigned the code 10000214; professional staff time up to 40 hours per week not spent on any client, training, office or other productive activity, or vacation, is charged to the code Available 99999914. Each assignment has a designated Assignment Partner (sometimes referred to informally as the audit partner or the tax partner, etc.); in general, this will be the designated Client Partner. However, when specialized skills are required, or there is a requirement for periodic rotation of partners, Richard may designate a different Assignment Partner though the Client Partner retains responsibility for the relationship with the client. For instance, David specializes in audit, Kenneth in personal and estate planning, Robin in bookkeeping and compilations, and Thomas in taxation; Richard himself specializes in business formation, valuation, and succession planning. The firms accounting period is JulyJune. Each spring, David Elm and Richard Ash review the client portfolio, and after discussion with the Client Partners, determine any clients who will not be retained. Following this client retention review, Richard writes to any clients who are not to be retained; a copy of the letter is passed to Sarah Holly to be added to the client file, along with a Client Retention Review Form documenting the decision and the reasons for it, signed by David and Richard. David Elm and Kenneth Ivy then meet to assign managers and in-charge accountants for the forthcoming year to each client, taking account of prior experience, clients and partners wishes, etc. In-charge accountants are typically new each year (though they may have assisted on the assignment in previous years); more senior managers are less likely to be re-assigned. Kenneth sends a memorandum to managers and in-charge accountants to advise them of their assignments for the forthcoming year.

You are required to follow the six-step design approach to complete your business cycle REA Data Model.

1. Identify the significant business events
2. Identify the related resources
3. Identify the related internal and external agents
4. Identify relationships between entities
5. Specify the cardinalities of the relationships
6. Identify the attributes of the REA entities and relationships