Q1: Basic Business Processes:

(i) To be familiar with basic business processes involving:

1. Revenue cycle (includes Inventory cycle)

2. Expenditure cycle (includes Inventory & Capital Expenditure cycle)

3. Production cycle

4. Payroll cycle

And

(ii) Know which parts of the 4 business processes have a direct impact on Accounting and AIS,

And

(iii) Discuss which part of the 4 business processes are more vulnerable to errors, breaches on internal controls, etc. and how AIS can play its part to reduce the aforesaid.

Q2: Case study below for Flowcharting activity:

"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."

Consider the issues below as well for the above case:

What are the challenges encountered? Example: lack of details in narrative?

Were there any assumptions required/made?

What are the probable common mistakes made? Example: wrong symbol used?