Central Luzon State University

College of Business Administration and Accountancy

Department of Accountancy

DOCUMENTATION TECHNIQUES AND DATABASE DESIGN

OF A BUSINESS ENTITY

ACC 310
Accounting Information System

Submitted by:
Bernardo, Albert A.
De Sesto, Jewel Christine G.
Saep, Anjo B.
BSAT 3-2

Submitted to:
Mr. Jeremy S. Lumibao
Figure 1. Flowchart for Noodles Business (Manufacturing)

Production Department Sales Department Employees

Start

Order Input Materials

Purchase
Order

Receive Goods

Receiving
Report

Produce Noodles Pay Employees

Receive Orders

Production Payroll
Schedule register
Customer
Order

To payroll
department
Deliver orders

Sales Invoice

End
Figure 2. Level Zero DFD for Noodles Business (Manufacturing)

1.0

Sale

Product Ordered

Production
2.0 Schedule
CUSTOMER EMPLOYEE
Production
Product Served

Inventory
Received Goods

3.0
VENDOR Procurement
Purchase Order

Payment

3.0

Payroll
 Figure 3. REA Model for Noodles Business (Manufacturing)

(1,1) (*,1)

Customer Purchase goods Employee

(1,*) (1,1)

Issue sales invoice

(*,1) (1,1)

Cash Pay invoice

Internal Controls

Valid internal controls have a positive and necessary place within a business and are
the responsibility of everyone in the organization. For this noodles manufacturing
business, there are appropriate internal controls for different functions in the business.
They are as follows:
 To safeguard assets
- Physical security such as locking premises, using security cameras, safes, etc.
- Avoiding giving one employee total control over a process
- Making sure there is an independent check on processes and procedures
- Having firewalls and protective devises on computer systems
- Having clear guidelines on personal use of assets
- Ensuring proper management supervision

 To ensure financial Information is accurate and reliable

- Number documents such as checks sequentially to avoid duplication
- Regular reconciliation of accounts
- Comparisons between budgeted and actual figures
- Segregation of duties
- Procedures for authorization of payments
- Independent check
- Validation checks
- Approved authority levels

 To ensure compliance with financial and operational requirements

- Assigning responsibility for compliance with particular requirements such as
'safety officer, fire warden'
- Physical controls to prevent accidents
- Processing customer complaints
- Staff feedback processes
- Procedures well documented
- Conduct of audits

 To assist in achieving the businesses objectives

- Undertaking reference checks on new staff to ensure they do have essential
qualifications
- Ensuring correct training for staff has been provided
- Appropriate supervision of staff