Accounting Information Systems
Flowchart Exercise
Instruction: Use the visio software to create a flowchart of internal control process as question given. the flowchart must include process of 4 columns: customers, sales clerk, manager and account receiveble.
Stephanie, the customer, purchases few items from a local grocery store and pays by
personal check. Jim, salesclerk associate, checks out the items bought and completes the
sales transaction at the cash register after acquiring credit approval and processes
Stephanie’s payment (still using written checks!). At closing, Jim runs total summary of
transactions for the daily shift and prints summary of the cash register tape. Jim gathers
all items and hands the cash drawer and cash register summary tapes to shift manager Kim.
Kim endorses the check (discussion point-Internal control issue) and she prepares a deposit
slip to deposit the check at the bank. After depositing the check at the bank, Kim gives all
copies of the deposit slip and related copies (class discussion) to Accounts Receivable
accountant, Emily, who uses the copies to make related entries and reconcile the cash
account to bank statement.
Required:
Prepare a systems/document flowchart for the sales subsystem as described above
Make sure you include all documents, master and data files, elements and processes
used in the above transaction (this is a complete cycle and posting entries to General
Ledger may be done at different processes within the cycle).
In describing processes, make sure you emphasize the control issues embedded in the
system and as reflected by each screen, activity and/or printed form used in each
business process (especially ‘discussion point’).
Label each input going into and coming out as an output from each process, and describe
the process including words indicating control issues.
Include your name at the top of your flowchart (use text box). Save file using your full
name as part of the file name. Upload Visio file OR PDF file (if you used other
flowcharting software) to Blackboard.
Checklist:
Have you included all documents (reports) used and generated by the system?
Have you included all files (master and transaction files) used and updated?
Make sure you reflect the logical sequence of activities.
Make sure you represent the sequence and direction of data flow.
Make sure you use the flowcharts symbols to help the user know when and where each activity
starts and ends, and who is in charge of carrying out each activity.
You need to Utilize On-page and Off-page connectors and paper/document filing symbol in your
finished flowchart (whenever possible).
The flowchart should not include redundant activities and should reflect internal control concepts
and objectives (or improve/streamline procedures if you recognize redundancy or weak controls
in any procedure listed above- discussion point).
Copyright © by Rabih Zeidan
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