2.
Type of Business: Appliance Center
3. Business Process:
1. Purchasing
2. Selling
4. Transaction Cycle: Expenditure- Purchasing
Revenue – Selling
5. Expenditure Cycle Activities
1. Purchasing or Ordering of Merchandise
2. Receiving of purchased merchandise
3. Invoicing for merchandise ordered.
4. Return of merchandise due to defects
5. Payment of merchandise ordered.
Revenue Cycle Activities
1. Selling of merchandise
2. Delivery of merchandise
3. Invoicing
4. Sales return of merchandise
5. Payment from customers.
6. Source Documents:
Expenditure Cycle
Business Activity Source Document
1. Purchasing or Ordering of Merchandise 1. Purchase Order/Supplier’s Invoice
2. Receiving of purchased merchandise 2. Goods Receipt
3. Invoicing for merchandise ordered. 3. Accounts Payable Invoice
4. Return of merchandise due to defects 4. Goods Return
5. Payment of merchandise ordered. 5. Cash Disbursement Receipt
Revenue Cycle
Business Activity Source Document
1. Selling of merchandise 1. Sales Order
2. Delivery of merchandise 2. Delivery Receipt/Shipping Invoice
3. Invoicing 3. A/R Invoice
4. Sales return of merchandise 4. Sales Return
5. Payment from customers. 5. Cash Receipts
General Manager ( Owners)
- Responsible for the legal requirements of the business
- Responsible for the payment of expenses of the business
- Responsible for the monthly payroll
- Ensure the creation and implementation of a strategy designed to grow the business
- Responsible for purchasing of merchandise.
- Product management, including ordering, receiving, price changes, handling
damaged products, and returns.
- Ensure overall delivery and quality of the unit's offerings to customers
- Evaluate and decide upon key investments in equipment, infrastructure, and talent
Supervisor
- Responsible for the day-to-day operations of the business
- Responsible for checking the level of inventory every month
- Overall care of staff and their well being
- Presentation of store and advertising displays
- To handle problems and questions to customers
- Responsible for reporting the operation of the business to the manager
Bookkeeper
- Record all transactions and post debits (costs) and credits (income).
- Produce financial statements and other reports for supervisors and managers.
Cashier
- Responsible for Handling cash
- Responsible for the issuance of the official receipt and for receiving payments
Sales Assistant (Helper)
- Responsible for assisting the customers.
- Responsible for distributing the order of the prospective buyer
- To handle problems and questions to customers
Information Flow of Level of Name of report
Member Type of Report
Needed Information Information needed
Non-
Summari
Horizontal Vertical Detailed Mandatory Mandato
zed
ry
Financial Statements
Business Financial
reports, Daily Sales
Transactions,
General Report, Workforce
Administrative tasks,
Manager Management Reports
and Employees
and Inventory report,
Information
Payroll report
Business Transaction,
Employees Data, Cash Count Sheet
Store
Merchandise Report, Financial
Manager
Information, and Reports
Inventory Level
Daily Sales Report, Cash
Business Financial
Receipts Journal,
Bookkeeper transactions and
Disbursement Journal,
Business Information.
and Purchase Journal,
Merchandise
Cashier Information, Business N/A
Information
Merchandise
Sales information, Marketing
N/A
Assistant Information and
Business Information
IT CONTROLS EXISTING PRACTICE
I. Information Security
User Access Controls Biometric Identification and Passwords.
Physical Access Controls Locks, security guards, and CCTV.
Network Access Controls Antivirus Software (SMADV).
Log Analysis Audit Log.
II. Confidential and Privacy
Encryptions Authentication and File System
III. Processing Integrity and availability
Input Controls Input of resources and Data Entry.
Processing Controls File labels and cross-footing.
Output Controls Reconciliation and Data Transmission
Controls.
Payroll Flowchart
Supervisor General Manager Cash Disbursement
Time Cards Time Cards Payroll register
Personnel Action
Review Review
and and
Prepare Checks
Prepare Authorize
and Update Employee
personnel Cash
Records Record
Action Transfer
Paychecks Payroll register Payroll register
Time Cards
Personnel Action
Payroll register
Personnel Action
BANK
Review
and
Distribute
Personnel Action
Employees
Level 0 DFD: Payroll System
Payroll Data
File
1.0 2.0
Receive and Calculate
Record Time Payroll
Card
Employees
3.0
Prepare
Payment/
Check CD Journal
4.0 5.0
Approved Record
and Sign Payment
Check