Accounting Information System edition.
The questions are given below, and the note bellow is provided by the instructor, to what needed generally from this homework.
Assignment:
Demonstrate your ability to identify control plans, complete a control matrix, annotate a flowchart, and translate cardinalities into meaningful statements by preparing solutions to the problems.
Module- Order-to-Cash Controls
Problem 1:
For the following narrative (either OE/S or B/AR/CR-you decide), please do the following:
1) Prepare a complete control matrix for the narrative below. Be sure to include explanations of how each control plan that you identify as present (e.g., P-1, P-2, etc.) or missing (e.g., M-1, M-2, etc.) helps to accomplish each control goal to which you have associated it (i.e., the columns that you filled in).
In order to come up with your list of plans, review the list of explanations that appear in Exhibit 10.1 (OE/S), Exhibit 11.1 (Billing), Exhibit 11.2 (Cash Receipts) as applicable (i.e., choose the list that fits your business sub-process as described in the narrative) and, of course, any other plans that are listed in Exhibit 9.1, Exhibit 9.3 and/or Exhibit 9.4 for ideas.
i) Remember that your goal is to first identify control plans that are present in the narrative as it is described or implied by the description. There don't have to be a lot of them-sometimes there are only 3 - 6 controls that are present.
ii) To the extent that cost-effective alternative plans are available that are better (e.g., as you learned in Chapter 9, computer agreement of batch totals is better than manual agreement of batch totals), include those as missing control plans, as long as they are applicable to the situation described in the narrative. Usually 1- 3 of these missing control plans will suffice.
iii) If any of your effectiveness, efficiency, security, input or update (if applicable-by the way, make sure you know when update is applicable) control goals are empty or seem light that is a sign that you probably have a missing control plan.
2) Annotate the flowchart (see separate attached file) to match the present and missing control plans that you have placed in your control matrix.
Narrative for Problem 1
Coast Hospitality sells and delivers high-quality packaged food to restaurants in the Mobile, Orange Beach and Gulf Shores areas. Most of its customers are "mom and pop" restaurants with only one or two locations. Like its customers, Coastal is fairly "low tech" and does not even use a website for sales. Instead, it mails price lists once per month to its customers.
Usually once every few weeks, a customer will contact Coast's sales department by phone in order to place an order. While the customer is on the phone, the sales staffperson will open up a new sales order screen on his/her desktop computer. (Note that the desktop computer temporarily stores sales data in the sales department each day as it arrives, then in the evening, it is uploaded to the central computer).
Because there is also a copy of the customer history file downloaded daily on the sales department computer, the sales staff person enters the first 3 letters of the customer's primary key, and this will automatically pull up the rest of the customer's contact information. While the sales staff person is viewing the screen, he/she verifies the company name and most recent address with the customer. The sales staff person then takes the specific item information that the customer wishes to purchase and enters it into the preformatted computer screen while the customer is on the phone. A quick check is performed by the desktop computer that compares the total of the order requested, plus any existing customer balance, to the customer's pre-established credit limit If the total is less than or equal to the credit limit, the sale is approved. If not, the sale is not approved.
Once the salesperson confirms acceptance of the order with the customer by saving the order to his/her computer, a new sales record is entered in the sales event data store on the desktop computer. Each night, this data store representing the day's sales is uploaded to the central computer, where it is used to update the following three master data files: customer history, inventory, and sales orders. On a printer in the central computer area, a printer prints a daily sales summary as well as a picking ticket and packing slip. The daily sales summary is sent to the sales manager in the sales department, while the picking ticket and packing slip are sent to the warehouse.
Problem 2:
In the Entity-Relationship diagram presented in Figure, the area at the bottom of the diagram is associated with the B/AR/CR process. Note that the first event associated with Billing is SALES_INVOICES (at the very bottom of the gray portion), and this event eventually triggers the second event, CASH_RECEIPTS, etc.
For the 4 separate relationships in Fig that represent the B/AR/CR process (SALES_INVOICES and CASH_RECEIPTS, CASH_RECEIPTS and DEPOSITS, BANKS and DEPOSITS, and DEPOSITS and EMPLOYEES), provide a complete verbal description of the relationship cardinalities that characterize each of these 4 relationships. HINT: one of the four relationships is actually described in the notes at the bottom of the figure.
o Recall that you received some insights on this in an assignment that you did for Module 3 where you essentially were asked to do the same thing.