Académique Documents
Professionnel Documents
Culture Documents
A. DFD
Credit
Records
A.
Receive
Order
Inventory
Subs.
Ledger
Check
Credit
Shipping
Log
Approv
ed
Sales
Update
Invento
ry
Records
Ship
Goods
AR Subs.
Bill
Custom
er
Sales Journal
Update
Accounts
Receivab
le
Journal
Voucher
Post to
General
Ledger
General
Ledger
Records
Transaction authorization
a. Credit check no credit department, only sales representative. Also theres no
indication of analysis of the materiality of transaction for faster processing if the
amount is immaterial.
b. No return policy sales returns would not be processed faster and more
accountable because there is no return policy that was indicated in the process
c. Sales representative has the ultimate discretion of approval of the sales orders.
This may result in excessive inventory levels if all the approved sales orders
Accountabilit
y
I.
H.
G.
Does
F.
Asset
fraud requires
custody separate
collusion
from task of asset between two or
record keeping?
more
individuals?
Y = controls are present, N = controls not present, -
Transaction
authorization
separate from
transaction
processing?
= not applicable
J.
1. Sales
representati
N.
ve
2. Warehouse
clerk
R.
3. Shipping
clerk
V.
Z.
AD.
4. Billing clerk
5. AR clerk
6. GL
department
AH. 7. Cash
receipts clerk
K.
L.
M.
O.
P.
Q.
S.
T.
U.
W.
AA.
X.
AB.
Y.
AC.
Y
Y
AE.
AF.
AG.
AI.
AJ.
AK.
AL.
AM.
3. Supervision
a. Cash receipts processing does not have adequate supervision in receiving and
opening the mail.
b. There are too many employees staffed in the mail room, which can pose a risk of
familiarity, collusion, and lack of ultimate accountability
4. Access controls
a. Access to cash
i. Mail clerk has unrestricted access to the mail room without adequate
supervision
AN.
AP.
Christian Alcera
AQ.
order authorization. Also, they must hire a supervisor that will be help ultimately
accountable, especially in the mail room. They must also have independent verification of
the accuracy and completeness of the transactions transpiring in the sales representative.
Also, the billing department must have a controller that will supervise the material
changes in prices and charges to the customer invoice. There is also lack of audit trail;
invoices received are discarded after writing the check. They must maintain a file of
received invoices to maintain audit trail. Lastly, they must now consider to upgrade the
manual processing to computer based information system.
AR.
AS.
Antonio Ignatius
An analysis of their manual system is that they may be weak in processing
transactions in terms of time. Having a manual system may be more reliable as
compared to a computerized system however the time it takes to process the
In case of their supervision, they must have a controller, where the cash
receipts department usually reports that has the responsibility for financial assets. Also,
they must have an authorize person, to assist the checking and the flow of inventories in
the warehouse. And since the company encounters delivery delays, they must have a
carrier department so that inventories will be turned over to customers or to other
branches as fast as possible to prevent inventory stock out.
SALES
COMPUTER OPERATIONS
WAREHOUSE
SHIPPING
AW.
D. PROPOSED FLOWCHART
AX.
MAIL ROOM
AY.
CASH RECEIPTS
CASH RECEIPTS
A/R
GENERAL LEDGER