Accounting Information System
Documentation
Health Care LLC specializes in selling hospital/medical/scientific/laboratory equipment, device and instruments to hospitals and medical colleges. The company handles both written and telephone orders, using the following procedures
One of several company employed field sales representatives' records customer orders on a three-part form (Form A). The original is left with the customer, the duplicate is mailed to central headquarters each day in a special color-coded envelop, and the triplicate is retained in the sales representative's order pad.
When the written orders arrive at headquarters, they go directly to the secretary of the order entry department.
The secretary initially receives all telephone orders and inquiries as well.
The secretary routes inquiries to the customer service representatives and directs both written and telephone orders to one of three order entry clerks. Telephone orders are transcribed onto For and then read back to the customer for confirmation. Now both written and telephone orders are now in written form, further processing of Forms A and B is identical.
All customer orders are entered through Video Display Terminal VDT terminal located in order entry. They undergo a series of programmed edits as part of the data entry process. One of the edits is to validate the customer's name(s), address(s), freight and credit terms, and credit rating by referencing the customer master file (Note: all computer files are kept on disk). The inventory master file is accessed to check inventory availability.
Orders that pass all these tests are then recorded on the sales order master file; the inventory balance is reduced, and a screen message informs the clerk of the updates. The clerk files the accepted customer orders by customer number. Orders that fail any of the edits or validation are recorded in a computer 'suspense' file for later investigation.
Each evening, data processing prints five-pan sales orders (form C) the data stored on the sales order master file. Order entry receives two copies of the sales order, it files copy 2 in the accepted order file and mails the original (copy 1) to the customer. Copies 3 and 4 are sent to the warehouse, and copy 5 is sent to accounts receivable. Using copy 3, warehouse workers pick the goods. They file copy 3 and deliver the goods and copy 4 to the shipping department.
A shipping clerk checks the assembled order against sales order copy 4, prepares a three part shipping notice (Form D), and records the shipment in a shipping log. The shipping notice original signed by the carrier, serves as the bill of lading; sales order copy 4 is used as the packing slip. The bill of lading and packing slip accompany the goods to the customer. The duplicate of the shipping notice is sent to the accounts receivable; the triplicate is sent to order entry where it is filed in the accepted order file.
1. Draw a context diagram
2. Draw a detailed data flow diagram (DFD)
3. Draw a flow chart
4. Prepare the table of entities and activities
5. Discuss (Point by Point) the threats faced by Health Care LLC during the process and subsequent controls to be in place o overcome the identified treats
6. Explain in detail the type of input, processing and output controls use to ensure processing integrity.
7. What measures you will lake to protect the confidentiality and privacy of sensitive
Note: Clearly state your assumption wherever applicable in the given tasks.