CHAPTER 3 SYSTEMS DEVELOPMENT AND DOCUMENTATION TECHNIQUES SUGGESTED ANSWERS TO DISCUSSION QUESTIONS 3.1 Data Flows: merchandise‚ payment‚ cash and register tape Date Source: customer Processes: capture sales and payment‚ give cash and register tape to manager Storage: sales file (register tape)‚ cash register 3.2 It is usually not sufficient to use just one documentation tool. Every tool documents a uniquely important aspect of a given information system. For example‚ system flowcharts
Premium Data flow diagram
Internal control systems As defined in Paragraph 4(c) of ISA 315‚ internal control is “the process designed‚ implemented and maintained by those charged with governance‚ management and other personnel to provide reasonable assurance about the achievement of an entity’s objectives with regard to reliability of financial reporting‚ effectiveness and efficiency of operations‚ and compliance with applicable laws and regulations.” It includes all the policies
Premium Internal control Management Internal audit
Internal Control Risks Identified in Apollo Shoes Assessing control risk is the process of evaluating the design and operating effectiveness of a company’s internal controls as to how it prevents or detects material misstatements in the financial statement assertions of management (Hayes‚ Dassen‚ Schilder‚ & Wallage‚ 2005). The conclusion reached as a result of assessing control risk is referred to as the assessed level of control risk. When assessing controls the auditor looks for weaknesses
Premium Auditing Internal control Audit
limitations of the internal control system and also give the reader three examples of such limitations. Internal control procedures will be thoroughly discussed and how the procedures are actually executed. Signs and symptoms of an underdeveloped internal control system and the impact of a missing journal entry on a financial statement will be further reviewed. With everything‚ there can be bad or there can be good. In accounting‚ however‚ there has to be a consistent control system in order
Premium Internal control
Internal Controls Paper FIN/324 University of Phoenix November 2‚ 2005 Internal Controls Paper When it comes to the internal controls of firms and enterprises‚ executives are constantly keeping a close look on the accuracy and effectiveness of these controls along with seeking ways to better them. According to COSO (2004) the implementation of internal controls helps guide companies in reaching towards their profitability goals‚ the accomplishment of their mission statement‚ and helps minimize
Premium Internal control
Credit Control Contents Why should you have an effective credit control policy? What should your credit policy contain? How can you assess what a customer is worth? Why should your customer’s identity be important? Limited liability partnerships. Confusion over trading names Business Names Act 1985 How do you assess your customer’s credit risk? Why should data protection be important? Who is protected by the Data Protection Act? How does the Act apply? How should you get consent? Grey areas How
Premium Corporation Limited liability company Limited company
Revenue Cycle and Control Activities The revenue cycle for many companies is considered the primary source to earn revenue from the sale of goods or service. Good controls must be established to maintain the effectiveness of receivables and credit sales‚ not doing so can harm the company and might be costly to the business. Six classes of internal controls guides us in evaluating and designing transaction processing. They are authorization‚ supervision‚ segregation of duties‚ access control‚ independent
Premium Accounts receivable General ledger Inventory
Case Study Project What is the purpose of auditing? Describe the relationship between internal controls and the audit process. Answer The purpose of an audit is to provide financial statement users with an opinion by the auditor on whether the financial statements are presented fairly‚ in all material respects‚ in accordance with the applicable financial reporting framework. An audit also enhances the degree of confidence of intended users in the financial statements. Financial audits
Premium Audit Auditing Financial audit
critically analyze the • To evaluate the importance of having Internal Control procedures within ‘The Bargain Centre’ Aims: • To investigate the number of different internal control procedures used within ‘The Bargain Centre’ • To gain knowledge of how the different internal control procedures help secure the business against theft and embezzlement etc. Data collection: In order to carry out my research on Internal Controls within ‘The Bargain Centre Supermarket’ I have observed over
Premium Internal control Burglar alarm Embezzlement
ACCT301 Week 2 Homework 1. In two to three paragraphs‚ describe the Sarbanes-Oxley Act and why it is important to the accounting profession. (15 points) The Sarbanes-Oxley Act was passed in 2002 by Congress after a series of scandals involving companies such as Enron‚ WorldCom‚ and Tyco. This was passed because of shady transactions and misrepresented financial data which caused shareholders to lose millions of dollars and their trust in investing in public companies. It was passed to create
Premium Finance Enron Chief financial officer