Uploaded our Context Diagram, Was hoping someone could check for the validity of it according to the assignment.

Bank Merc hand i Consignor se/ G oods Fees Cont racts Unso ld M ercha ndise / goo ds Packing slip & B.O.L Shipping Department Pac & lip S ng ki .L. B.O Deposits Consignment Process s ood G ise/ d han s erc s ent M i ri e ym u Pa inq to nse ies o ir esp R nqu I t c ei p Re a le s S Sa le Customer s General Ledger & Reporting System ACCT 3303 Group Project Notes Fall 2015 Introduction This case provides students an opportunity to integrate various topics covered in a typical Accounting Information Systems course. The case requires students to prepare system documentation, analyze internal controls, perform data modeling, and design a simple database system. In the typical Accounting Information Systems course, these topics are covered separately. The case allows students to integrate each of these topics in a comprehensive case. Learning Objectives The case requires students to examine a company that is currently using a manual system and to document the system. Based on the documentation, students are asked to identify internal control strengths and weaknesses and any potential for fraud. In addition, students are asked to model and create a relational database using Microsoft Access. This database is used to generate forms and reports that provide information necessary to help run the business. By successfully completing this case, students should develop their ability to: 1. 2. 3. 4. document systems by creating flowcharts and data flow diagrams; evaluate the internal controls of an organization and identify strengths and weaknesses; identify possibility for fraud; design a database using data modeling; General Project Guidelines Description of Project Your group project will involve the analysis, design, documentation, design of internal controls, and design of a database system using Microsoft Access. Each group will consist of no more than 5 members. Each group will select its own leader. Each member should contribute equally to the project. All group members must be involved in the development of diagrams, the internal controls, and the database. Failure to do so may result in at least a one-grade penalty for the project. Your group should look upon this project as if you were being hired as a consulting team to provide advice to the case organization on how to improve its accounting system. Report Requirements The finished project/report should be completely typed or otherwise computer generated (i.e., no hand drawn diagrams or corrections are allowed). Sections should be clearly labeled. Include computergenerated page numbers (be careful as the default for Word is no page numbers). Use one and a half line spacing (double space between paragraphs), an 11 or 12-point font, a 1.25 inch left margin, and one inch for the top, right, and bottom margins. 0 The entire document should appear to be from a unified group. For example, each page should evidence the same style and all exhibits should be included within the Word document. To accomplish this, your diagrams and any figures must be cut and pasted into Word. You may use a drawing program of your choice (except for Microsoft Visio); however, PowerPoint works well for the diagramming requirements of this project. For screenshots, use alt-Print Screen (to select the active window) or a screen capture application such as Windows Snipping Tool. Points will be taken off for not complying with any of these requirements. The project should be presented as if it would be given to client management for consideration. Your project should be long enough to cover all requirements but short enough to hold the interest of your reader. Remember, a picture is worth a thousand words! Our joint goal should be to make the project something we can be proud of. Your project must include the following: 1) Title page showing the client name, group name, group members' names and date. It should not reference ACCT 3303 or the professor. 2) Table of contents with page numbers. 3) One page executive summary, single or 1.15 spaced. 4) Introductions and conclusions as appropriate. 5) All assignment requirements 1 - 8b. 6) Any other items you believe are needed to make your project complete. 7) A time sheet for each group member showing which tasks were performed by each group member and the amount of time spent on each task and the total time spent on the project. (Note: the time sheets are not part of your official report to the client, so they should not be included in the table of contents or even numbered.) The project will be submitted as a single PDF file via Blackboard. The easiest way to accomplish this is to have your entire project (including time sheets) in one Word file. You can then print to Adobe PDF (preferred) or Save as Adobe PDF. Instructions for how to do this can be found in the How to Prepare your GL Project Output File. Just remember to look at your file after printing or saving to PDF as sometimes the process generates unexpected results. Grading All members of the group will receive the same score unless there is compelling evidence to grade otherwise. All group members will complete a peer evaluation of all group members including themselves. I use these peer evaluations and the time sheets to assess participation. Failure by any member of a group to fully participate in the group project may result in a zero on the project. The 100 points for the project will be allocated based on the following: Technical merit Completeness Content Quality Overall Professionalism Peer Evaluation 1 Designer Resale Consignment An Accounting Information Systems Case Project Adapted from Devona and Lee1 Designer Resale Consignment store is a resale shop located in Arlington, Texas. It is owned by Deborah Gaines who employs a store manager, an assistant manager and several sales clerks. The store receives high-end designer clothing and accessories. All items are in \"mint condition\". The items are from local residents on consignment. The store (consignee) keeps 30-50% of the sales price and remits the remaining amount to the owner of the consigned items (consignor). The store is allowed to mark down items up to 50% below the originally agreed upon sale price. If the store is unable to sell the item within a six-month period, it is returned to the owner. Designer Resale Consignment fee schedule is as follows: Fee When Sold 50% 40% 30% Sale Price $100 or less $101-$499 $500 or more Current Consignment Procedure The store's record-keeping system is manual, using several index card files and journals. The store operates as follows. 1. The owner, Deborah Gaines, spends most of her time meeting with potential consignors and inspecting high-end designer clothes and accessories to place in her store. If accepted, the owners of the clothes and accessories transfer possession of the items through a legal letter of agreement (2-part consignment contract) which details the agreed-upon price of the consignment item. The consignor receives a copy of the contract at the time of the agreement. Deborah turns over the original signed consignment contracts to her manager. 2. The manager, Isabella Perez, records the contracts in the consignment file (Figure 1). This file includes one index card for each contract. If one person has consigned multiple items, there is a separate contract and thus a separate index card for each item. Deborah would like to change this so that she only has to use one contract per consignor, no matter how many items are included. The actual contracts are filed in a separate file by contract number. 3. A record of the item consigned is also filed in the Inventory file (Figure 1) by category (i.e. handbags, shoes, clothing, jewelry, and accessories). Hence, if a customer contacts the store looking for a particular item, the store can search the files for that category to determine what is on hand. There is one record in the file for each item. 4. Sales clerks are allowed to negotiate with customers and sell the item at any price, as long as the price is not below 50% of the originally agreed-upon price in the contract. The store allows customers who cannot pay the full price immediately to put 20% down on the item and they then have 30 days to pay the balance. These sales are referred to as layaways. The consignment store accepts only cash and checks for payment. When a sale is made, the sales clerk fills out a sales receipt (Figure 2) which is given to the customer. The sales clerk enters the amount of sale on the store's sales log (and designates those items that are on layaway) 1 Sandra Devona and ChihChen Lee, Northern Illinois University 2 (Figure 3) and places the cash or checks in a cash box. The cash box is locked in a safe at the end of each day. Deborah periodically removes the cash and checks from the cash box and deposits them into the store's bank account. The sales clerks are also supposed to pull the index card of the item sold out of the consignment file and the inventory file. Often they forget to do this. This proves embarrassing when a customer calls and is told a particular item is on hand, when it has already been sold. 5. Every Friday the manager, Isabella Perez, searches the sales log. For every entry, she determines the percentage of the sales price that should be returned to the consignor. This is a tedious process, as it is sometimes difficult to determine based on the sales log description exactly which item was sold. She then writes a check for the amount, and records the payment in the payment register. This process results in one check for each item sold. To cut down on the number of checks issued, Deborah would prefer to pay for multiple items on one check. 6. During the first week of each month the assistant manager, Rosalyn Smith, searches the consignment file to determine if any items are over six months old. If so, she arranges for delivery of the item back to the owner. If a sales clerk forgot to pull the card from the file when the item was sold, the assistant manager often spends unnecessary time trying to locate the items. Recently, Deborah has received several complaints from consignors. Because they do not receive any supporting documentation with the check, they are unsure whether they are being paid the correct amount. Additionally, a few consignors complained that after six months, they were never paid nor was the item ever returned to them. Assignment Currently Designer Resale Consignment store uses a manual system. The owner, Deborah Gaines, feels that having a computerized system will improve the efficiency and accuracy of their accounting processes. Your consulting firm was contacted to submit a proposal for a new system. The proposal should include an examination of Designer Resale Consignment store's current systems, identification of control strengths and weaknesses, recommendations for strengthening the controls, and a design of a database system for the store (see the list below for the detailed requirements of the proposal). Your firm will compete with other consulting firms for the engagement. Problem Identification: 1. Provide a brief overview/description of the existing problem(s) and the relationship(s) to the existing information system. Be sure to get to the root of the problem. The fact that the company needs to computerize the existing system is not the problem. Documentation (Current System): Provide the following diagrams. Note: you must include a discussion of the diagrams in addition to the diagram. Remember you are providing the report to the manager, not your professor. 2. Document the current system using the following data flow diagrams (DFDs): a. a context diagram b. a level-0 data flow diagram 3. Document the current system by preparing a document flowchart. 3 Internal Controls: 4. Describe the strengths that exist in the current system. Separate the controls into general and application controls. State whether the controls are preventive or detective. What threat or fraud is the control designed to prevent or detect? You may use bullet points or a table as shown below: Existing Control Type of Control Designed to Prevent/Detect 5. Identify weaknesses that exist in the current system. Describe the possible threat or potential fraud for each weakness. How could such threat/fraud be prevented or detected? Note: this is a general recommendation. Requirement 6 addresses the specific controls. You may use bullet points or a table as shown below: Weakness Identified Threat/Potential Fraud Recommendation 6. Describe the internal controls that should be built into the new system to provide reasonable assurance that the company's control objectives (safeguarding assets, maintaining adequate records, complying with applicable laws and regulations) are being met. Separate the controls into general and application controls. State whether the controls are preventive, detective, or corrective. Each control should map directly to one of the weaknesses identified in Requirement 5. Your analysis should address the COBIT framework for IT control, the 2013 COSO Internal ControlIntegrated Framework, the COSO Enterprise Risk ManagementIntegrated Framework, the Trust Services Framework, the Sarbanes-Oxley Act of 2002 (SOX), or any other control concepts you believe are important in the proposed system design. Note: you do not have to address all of the frameworks. Make sure all of your controls are clearly enumerated using bullet points or numbers. Documentation (Proposed System): This flowchart should improve upon the current system and address any control issues. Note: you must include a discussion of the diagrams in addition to the diagram. Remember you are providing the report to the manager, not your professor. 7. Document the proposed system by preparing a document flowchart. Data Modeling: 8. Design a database system for the company. a. Prepare an integrated REA Diagram (Revenue and Expenditure Cycles) to conceptualize your proposed database system (you should check the provided Excel spreadsheet for current file structures to learn what information the store collects and incorporate that into your REA diagram). Be sure to explain the diagram and following table to the store owner. b. Convert the integrated REA diagram into a set of tables to be implemented in a relational database (see Table 18-1 on page 541 of your textbook) indicating the table name, the primary key, any foreign keys, and any other attributes as appropriate. Be sure to include all tables required to implement the REA data model into a relational database. Note: you do not have to actually implement the database in Access. 4 Figure 1 - Example Index Card File e 5 Figure 2 - Example Cash Receipts E s 6 Figure 3 - Example Sales Log Date Description Layaway Y/N Sales Price N Y $280.00 $480.00 25-Nov Woman's Bally size 7 26-Nov Celine blue handbag 7