The Internal Audit Director has asked you to document the cash receipts system (which includes updating of A/R) at FreeFall, Inc A narrative of the system follows:

FreeFall, Ine sells parachutes. An individual may come into the office and buy directly. When the customer comes to the office, they pay at time of purchase by cash or check. Other orders are made by mail and receipts come into the mailroom. Only checks are received by mail. In most cases, a remittance advice is included with the payment. The mail room clerk sends all checks and remittance advices to a clerk in Treasury. When the clerk receives the checks from the mailroom, she manually prepares a remittance advice for all checks in which a remittance advice was not sent. Near the end of the day, she gathers all the cash, checks and remittance advices and gives them to the Treasurer. The treasurer endorses all checks and prepares a deposit slip for the checks and the cash. He keeps a copy of the deposit slip and files by date. He returns the checks and cash to the clerk who makes a daily deposit at the local bank. When checks are received in the mail as payment for accounts due, the Treasurer sends the remittance advices to Accounts Receivable. Each morning, the remittance advices, by the use of a terminal, are entered into the system and stored on a magnetic disk. Remittance advices are filed by date after being entered. At the end of the day, the Accounts Receivable database which is stored on magnetic disk is updated with the transaction file. Weekly (end of week), accounts receivable generates an aged accounts receivable report. Two copies of the report are generated and one copy is sent to the Treasurer and the other is filed by date.

Required: On a separate piece of paper for each part, prepare the following:

a. A Level 0 DFD for the cash receipts system at FreeFall, Inc.

b. A business process modeling diagram (BPM) for the cash receipts system at Freel

c. Prepare a document flowchart for the cash receipts system at FreeFall, Inc