Please fill out the chart in the last picture
EXHIBIT 9.5 Bridgeport LLC System Narrative to Accompany Problem 91 Bridgeport LLC uses the following procedures to process the cash the computer updates the accounts receivable master data. If there received from credit sales Customers send checks and remittance are any discrepancies the clerk is notified. advices to Bridgeport. The mailroom derk at Bridgeport endorses At the end of each batch for at the end of the day), the com- the checks and writes the amount paid and the check number on puter prints a deposit slip in duplicate on the printer in the cashier's the remittance advice. Periodically, the mailroom clerk prepares a office. The cashier compares the deposit slip to the corresponding batch total of the remittance advices and sends the batch of remit- batch of checks and then takes the deposit to the bank. tance advices to accounts receivable along with a copy of the batch As they are entered the check number and the amount paid total. At the same time the clerk sends the corresponding batch of for each receipt are logged on a disk. These event data are used to checks to the cashier. create a cash receipts listing at the end of each day. A summary of In accounts receivable, a clerk enters the batch into the com- customer accounts paid that day is ako printed at this time. The puter by keying the batch total, the customer number, the invoice accounts receivable derk compares these reports to the ternittance number, the amount paid, and the check number. After verifying advices and batch totals and sends the total of the cash receipts to that the invoice is open and that the correct amount is being paid, the general ledger office FIGURE 9.4 Control Matrix for Manual and Automated Data Entry Control Goals of the (blank) Business Process Control Goals of the Operations Process Control Goals of the Information Process (a) Ensure Efficient Employment of Ensure Security Ensure Resources of Resources For the (blank) Recommended Effectiveness (people (event data, For the (blank) master data Control Plans of Operations computers) assets) inputs, ensure ensure: A IV IC IA UC UA Present Controls P-1: Document design P-1 P-1 P-1 P-2: Written approvals P-2 P-2 P-3: Preformatted screens P-3 P-3 P3 P-4: Online prompting P-4 P-4 P-4 P-5: Populate input screens with P-5 P-5 P-5 P-5 master data P-6: Compare input data with P-6 P-6 P-6 P-6 master data P-7: Procedures for rejected Inputs P-7 P-7 P-8: Programmed edit checks P-8 P-8 P-8 P-9: Confirm input acceptance P-9 P-10: Automated data entry P-10 P-10 P-10 P-11: Enter data close to the origi P-11 P-11 P-11 P-11 nating source P-12: Digital signatures P-12 P-12 P-12 Missing Controls None noted Possible effectiveness goals include the following: IV = input validity A= Ensure timely input of (blank) event data IC = input completeness See Exhibit 93 for a complete explanation of control plans and cel entries. A = input accuracy UC = update completeness UA = update accuracy FIGURE 9.11 Bridgeport LLC Systems Flowchart to Accompany Problem 9-1 MAILROOM ACCOUNTS RECEIVABLE COMPUTER CASHIER Customer Annotated RAS Key BT customer number, invoice number amount, and check number Verify, post to AR master, log on cash receipts event data Cash receipts event data RAS Endorsed checks Checks BT Temp file Filed until deposit slip is received Verity/ accept Print deposit slip Endorse checks Accounts receivable master data Error routine not shown Endorsed checks Error routine not shown BT At end of batch or end of day Write amount and check number on RA Annotated RAS Endorsed checks Compare Print end- of-day reports At end of day Deposit slip Prepare batch total for RAS CR total Compare 2 Deposit slip Deposit Summary of customer accounts pald CR listing sip General ledger office Bank Periodically Summary of customer accounts paid CR listing Endorsed checks KEY: RA = Remittance advice BT = Batch total CR =Cash receipts Using Exhibit 9.5 and Figure 9.11, do the following: a. Prepare a control matrix, including explanations of how each recommended control plan helps to accomplish-or would accomplish in the case of missing plans-each related control goal. Your choice of recommended control plans should come from Figure 9.4 (pg. 325)/ Exhibit 9.3 (pp. 329-330) or Figure 9.6 (pg. 334)/Exhibit 9.4 (pg. 338), as appropriate. Be sure to tailor the matrix columns to conform to the specifics of the Bridgeport system. In doing so, assume the following two effectiveness goals only: Timely deposit of checks . Compliance with compensating balance agreements with the depository bank + Control Goals of the BridgeportCash Receipts Process Control Goals of the Operations Process Control Goals of the Information Process Ensure effectiveness of operations: For the remittance advice inputs (i.e., cash receipts), ensure: Ensure efficient employment of resources (people, computers) Ensure security of resources (cash, accounts receivable master data) For the accounts receivable master data, ensure: Recommended control plans A B IV IC IA UC UA Present Controls P-1: Preformatted screens P-2: Online prompting P-3 Programmed edit checks. P-4: Manual agreement of RA batch totals P-5: Manual agreement of deposit batch totals Possible effectiveness goals include the following: A- Timely deposit of checks B - Comply with compensating balance agreements with the depository bank IV = input validity IC = input completeness IA = input accuracy UC = update completeness UA= update accuracy
