Question:
1. Using Excel, prepare a flowchart documenting the sales/collection process for ELM Corporation using the facts provided below. Someone looking at your finished flowchart could be able to "read" it and end up with the details shown below. Make sure you use proper symbols, clear labels, and proper flowcharting methods.
ELM Corporation sells durable medical equipment, such as hospital and wheelchairs beds; every salesperson at ELM specializes in a specific type of medical equipment. When a prospective client comes into their store, a greeter does a preliminary needs-assessment to evaluate what type(s) of equipment the client requires. Based on that preliminary assessment, the greeter will match the client with a member of the sales staff. The staff specialist does a more detailed needs-assessment, the results of which go into a computerized database along with the client's name, phone number, address and other related information. After the assessment, the staff specialist evaluates the client's budget, as well as whether the client has insurance coverage for the desired equipment; clients without insurance coverage receive a 10% discount on all equipment purchased up to $1,000, and a 20% discount for any sales over $1,000. The staff specialist makes recommendations based on the client's needs and budget. If the client selects to purchase from ELM, the store fills out any required insurance paperwork and collects the client's portion of the bill. For example, if an insured client purchases a wheelchair with a price of $2,000 and the insurance covers 80%, ELM collects $400 from the client at the time of the sale. ELM accepts cash, checks and main credit cards from clients. Insurance payments go directly to ELM and normally arrive within 60 days of the sale. If the client needs more than one type of durable medical equipment, the first staff specialist introduces the client to a subsequent staff specialist, who repeats the process until all of the client's equipment needs are met.
2. Using Microsoft Word, prepare a narrative describing internal controls ELM should implement to mitigate risks in the collection/sales process explained above. Recall that controls will be preventive, detective, and/or corrective. Be sure to clearly identify where the controls could be implemented and the risk(s) each control is designed to mitigate.