The documents show a narrative of the revenue and expenditure cycles. I need help completing the parts down below a.-c.

The textbook picture shows COSO's internal control model. So how do I prepare document flowcharts of the existing system and what are my internal controls? Then what are my internal control weaknesses for both cycles?What should the new flowcharts look like when fixing the internal control issues? (Parts a-c)

Thank you.

2. weaknti 3 . flowthails y. did of both 5. Rea model - keys ACCT360 Final Project Falcor Supplies is a distributor of high tech teaching equipment. Its primary target customers are schools in the region who purchase the teaching equipment for classrooms and online use. The company's main competitors in the industry are other high tech teaching supply companies. Falcor Supplies started in 2011 with an office in Carbondale, Illinois, initially targeting local universities and colleges. The company realized there was a high demand for reasonably priced equipment and the convenience of using the internet to shop for this type of equipment. After its second year, with a constant increase in customer orders, Falcor decided to focus on selling to more colleges and universities throughout the Midwest. The move has had a positive effect on net profits and demand, supporting the decision to continue the growth of the company. Falcor recently expanded its facility to be able to fulfill a higher demand for its products. Its customer base ranges from areas as close as Southern Illinois University to as far as universities in the surrounding states. As of 2015, there were 60 employees. Their prior year's gross sales were $12 million. Falcor's market share is on the rise but is not yet comparable to some of the larger school supply wholesalers. However, the corporation's goals for the upcoming years include establishing itself as an industry player through increased customer satisfaction and loyalty. Falcor is also considering the installation of a new information-processing system. This system will reengineer the company's current business functions by reducing loopholes in its internal control problems. It will also make the overall sales process more efficient. Falcor purchases the products it sells from various wholesale suppliers and distributors, totaling 22 suppliers nationwide. The office has its own warehouse, stores its own merchandise, and is responsible for replenishing the inventory. Falcor has had no substantial problems in the past with their suppliers. On the other hand, it has encountered problems with excess inventory> stock-outs, and discrepancies with inventory records. Revenue Cycle Becoming a customer of Falcor involves calling the toll-free number and speaking with one of the sales representatives, who establishes a new customer account. A customer's account record contains the information about the school including, a contact person's name, address, phone number, previous orders made with the company, and a sequentially assigned unique customer account number. Falcor does not sell directly to teachers, only to the school. All sales are wholesale sales, so no sales taxes apply. Billing Customers place orders via the Internet. A sales representative then prepares a sales order record. John, in the billing department, reviews the sales orders, adds prices and shipping charges, and prints a copy (invoice) that is sent to the customer, John then records the sale in the sales journal. Chris, a warehouse employee, verifies the information on the sales order, picks the goods, prints the packing slip, and updates the inventory subsidiary ledger. Chris then prepares the bill of lading for the carrier. The goods are then shipped. InventorySandy in AR uses the remittance advices to update the customer accounts and general ledger control accounts. When customers make a payment on account, they send both the remittance advice (that was attached to the invoice) and a check with the account number on it. oma dude Scott, a mail room clerk, opens all the mail. He separates the checks, cash, and remittance advices and prepares a remittance list, which, along with the checks and cash, is sent to the cash receipts department. He sends the remittance advices to Sandy. Laura, the cash receipts clerk, reconciles the checks Is the checks with the remittance list, prepares the deposit slip, updates the general ledger, and then deposits the checks in the bank. She sends the deposit slip to Sandy in the accounting department. Upon receiving the bank receipt, Sandy files it and updates the cash receipts journal to record the amount deposited. The customer has a 15-day grace period, beginning upon the receipt of the equipment ordered. If, at the end of that period, a payment is received, it is understood that the goods have been accepted. If, on the other hand, the customer is dissatisfied with the product for any reason, they can return it to Falcor at no charge. However, to return the equipment, the customer must contact Falcor to obtain an authorization number. When the returned goods arrive, Chris prepares the return record and updates the inventory subsidiary ledger, Printed copies of the return record are sent to John and Sandy. John reviews the return record and updates the sales journal. Sandy credits the customer's account and updates the general ledger to reverse the transaction. Expenditure Cycle return - updating inventory The purchases system and the cash disbursements system compose Falcor's expenditure cycle. The three departments within the purchasing system are warehouse, purchasing, and accounting. The purchasing function begins in the warehouse, which stores the inventory of equipment. Jim, the warehouse manager, compares inventory records with the various demand forecasts of each week, which the market research analyst team provides, to determine the necessary orders to make. At the end of the week, Jim prepares the purchase requisition record. Sara, the purchasing clerk, reviews the purchase requisitions, selects the suppliers, and prepares the purchase orders. Copies of the purchase orders are sent to the supplier and to accounting. When the shipment arrives, Chris, the warehouse clerk, working from a blind copy of the purchase order, counts and inspects the goods for damage. He then prepares a receiving report and updates the inventory records. Upon receipt of the supplier's invoice, Diana, the accounting clerk, compares it to the respective purchase order and receiving report. If the invoice is accurate, Diana creates an AP record, sets a due date for payment, and updates general ledger accounts. On the due date, Evan, the cash disbursements clerk, closes the AP record, cuts a check, and sends it to the supplier. He then updates the check register and the general ledger.Required (a. through f. worth 25 points each for a total of 150 points; g. and h. will be bonus points with g. worth 15 points and h. worth 10 points) Assume that the manual system described is to be automated using a relational database system. Perform the following tasks. You may need to make assumptions about how certain automated activities will be performed. a. Prepare the document flowcharts of the existing system (both cycles) as described in the narrative. You may want to annotate the internal controls that are currently present. b. Analyze the physical internal control weaknesses in the current system (both cycles). Model your response according to the six categories of physical control activities specified in the COSO internal control model. C. Prepare a new set of systems flowcharts for each of the two cycles with your recommended changes based on concerns you have with control weaknesses in the current system. Include recommended controls in the new flowcharts. These flowcharts would be your recommendation to Falcor of the way the system should be operating. d. Prepare a data flow diagram for each of the cycles described in the narrative. This DFD will be your understanding of the logical flow of data through the system. Prepare, at a minimum, the Context level, Level 0, and Level 1 diagrams. e. Prepare the REA model of the new system (both cycles) that you recommend. . Show cardinalities for all associations. f. List all tables necessary for the REA model. (include any linking tables) List all attributes for each table . Identify the primary and foreign keys. BONUS: g. Using Access, implement the tables listed in f. above. List all attributes in the Access tables (5 points) o Identify the primary keys in the Access tables Enter a minimum of five rows of sample data in each table (5 points) . Create the relationships for the Access tables (5 points) h. Create a few queries to retrieve or analyze data you stored in the tables in your Access DBMS. . You will receive 5 points per working query, up to a total of 10 points. 1. document flowchart rev + expedenture ( annotate internal controls present 2. weaknesses - coso model 3, flowcharts rev +exp - rev flow 4. did of both chart 5. Rea model - keys2MT CHAPTER 7 CONTROL AND ACCOUNTING INFORMATION SYSTEMS 203 TABLE 7-1 Five Components and 17 Principles of COSO's Internal Control Model COMPONENT DESCRIPTION Control environment This is the foundation for all other components of internal control. The core of any business is its people-their individual attributes, including integrity, discipline, ethical values, and competence- and the environment in which they operate. They are the engine that drives the organization and the foundation on which everything rests. 1. Commitment to integrity and ethics 2. Internal control oversight by the board of directors, independent of management 3. Structures, reporting lines, and appropriate responsibilities in the pursuit of objectives established by management and overseen by the board 4. A commitment to attract, develop, and retain competent individuals in alignment with objectives Risk assessment x 5. Holding individuals accountable for their internal control responsibilities in pursuit of objectives The organization must identify, analyze, and manage its risks. Managing risk is a dynamic process. Management must consider changes in the external environment and within the business that may be obstacles to its objectives. 6. Specifying objectives clearly enough for risks to be identified and assessed 7. Identifying and analyzing risks to determine how they should be managed winlub sim er thom+8. Considering the potential of fraud 9. Identifying and assessing changes that could significantly impact the system of internal control Control activities Control policies and procedures help ensure that the actions identified by management to address risks and achieve the organization's objectives are effectively carried out. Control activities are performed at all levels and at various stages within the business process and over technology. 10. Selecting and developing controls that might help mitigate risks to an acceptable level 11. Selecting and developing general control activities over technology 12. Deploying control activities as specified in policies and relevant procedures Information and Information and communication systems capture and exchange the information needed to conduct, communication manage, and control the organization's operations. Communication must occur internally and externally to provide information needed to carry out day-to-day internal control activities. All personnel must understand their responsibilities. menus of bewail got 13. Obtaining or generating relevant, high-quality information to support internal control 14. Internally communicating information, including objectives and responsibilities, necessary to support the other components of internal control 15. Communicating relevant internal control matters to external parties Monitoring The entire process must be monitored, and modifications made as necessary so the system can change as conditions warrant. Evaluations ascertain whether each component of internal control is present and functioning. Deficiencies are communicated in a timely manner, with serious matters reported to senior management and the board. 16. Selecting, developing, and performing ongoing or separate evaluations of the components of internal control 17. Evaluating and communicating deficiencies to those responsible for corrective action, including senior management and the board of directors, where appropriate ntity, assess and manage risk, and provide reasonable assurance that the company achieves objectives and goals. The basic principles behind ERM are as follows: Companies are formed to create value for their owners. Management must decide how much uncertainty it will accept as it creates value. Uncertainty results in risk, which is the possibility that something negatively affects the create or preserve value. v that something positively af