SECTION 1- Unit 1 Conceptual Questions

Question 1 (10 marks)

A software company in Barbados is organizing a competition, inviting business ideas that promote the use of smartphone technology to conduct business. You enter your business plan, an initiative to involve unemployed teenagers and young adults from local communities to generate business and employment, and it was so well received that you were awarded a special prize of 50,000 Barbados dollars. You plan on using your prize money to implement your idea.

a. Identify key decisions you need to make, the information you require to make these key decisions, and the five major business processes you need to engage in.

b. Identify the external parties with whom you would need to exchange information and specify the information you will receive from these parties and the information that you will send to these parties.

QUESTION 2- Unit 2 Conceptual Question (10 marks)

The purpose of an audit trail is to be able to trace a transaction from its origin through source documents to the final output or backwards from the final output to the original source documents to prove the accuracy and validity of ledger postings. Describe in detail the audit trail for the following in a manufacturing business: a. Shipping an order to a customer b. Customer returns defective goods c. Employee payroll for employee wages (using time cards or time sheets)

With the aid of visual diagrams, describe in detail the audit trail for the following in a manufacturing business:

a. Shipping an order to a customer

b. Customer returns defective goods

c. Employee payroll for employee wages (using time cards or time sheets)

SECTION 2 -UNIT 3 QUESTION (40 marks)

As the internal auditor for Permalite Products, you have been asked to document the company's payroll processing system. Based on your documentation, Permalite hopes to develop a plan for revising the current system to eliminate unnecessary delays in pay cheque processing. The head payroll clerk explained the system: The payroll processing system at Permalite Products is fairly simple. Time data are recorded in each department using time cards and clocks. It is annoying, however, when people forget to punch out at night, and they have to record their time by hand. At the end of the period, their payroll clerks enter the time card data into a payroll file for processing. The clerks are pretty goodthough they have had to make a number of corrections when they mess up the data entry.

Before the payroll file is processed for the current period, human resources send personnel changes, such as increases in pay rates and new employees. The clerks enter this data into the payroll file. Usually, when mistakes get back to them, it is because human resources are recording the wrong pay rate or an employee has left and the department forgets to remove the record. The data are processed and individual employee pay cheques are generated. Several reports are generated for managementthough it is not certain what they do with them. In addition, the government requires regular national and municipal withholding tax reports for tax purposes. Currently, the system generates these reports automatically.

REQUIRED

a. Prepare a context diagram and Level 0 DFD to document the payroll processing system at Permalite Products.

b. Prepare a document flowchart to document the payroll processing system at Permalite Products.

c. Prepare a BPD to document the payroll processing system at Permalite Products.