Compulsive Accessories manufactures and sells speakers, headphones, and related items to retail stores. Completed orders (goods and attached sales order) are received in the shipping department from the factory floor. The shipping clerk keys the sales order number into the computer in the shipping department. The computer accesses the sales order on the sales order master data and displays the open sales order. After determining that the correct sales order has been displayed, the shipping clerk keys in the items and quantities being shipped. The clerk reviews the shipment data and, if correct, accepts the input. (Note: The remainder of the shipment process is beyond the scope of this case narrative.) After the shipment data has been accepted, the computer updates the sales order master data to reflect the shipment, creates and records an invoice on the accounts receivable master data, and prints an invoice, in three parts, on the printer in the billing office. A billing clerk signs the invoice, mails copies 1 and 2 to the customer, and files copy 3 by customer name.
Detailed Requirements:
For your case, provide the following:
Prepare a table of entities and activities.
Draw a physical data flow diagram using LucidChart.
Draw a systems flowchart, annotated with both present and missing controls using LucidChart.
Prepare a completed control matrix. Make sure to assign controls to specific goals.
Provide a 1 page analysis of the case. This analysis should include a conclusion on whether the process, as described, is efficient and effective. Use the results of steps 1-4 to support your conclusions.
Sample Solution
nditions or the circumstance of the client . Types of Financial Instrument: 1. Shares- This is a unit used as mutual funds , limited partnership, and real estate investment trust. The owner of shares in the corporation is a shareholder of a corporation. The risk involved and the return from investing in the shares are high. 2. Bonds-This is an instrument of indebtedness of the bond issuer to the holder.The common types of bonds include municipal bonds and corporate company. Most bonds pay fixed rate of interest income that is also backed by a promise from the issuer. 3. Cash Equivalents-These are the most liquid current asset found on a business balance sheet. These are short term commitments (It carries an significant risk of changes in the asset value). 4. Properties and Commodities-These include agricultural products, energy sources and metals. These helps in reducing the overall portfolio risk and return. 5. Pooled investments 5a. Mutual Funds- It is a common pool of money into which investors put their contributions to be invested in accordance with a stated objectives. This involves Market risk, Inflation risk, Credit Risk, Interest rate risk. 5b. Exchange traded funds- An ETF holds assets such as stocks, commodities, or bonds and generally operates with an arbitrage mechanism design to keep it trading close to it net asset valu>
nditions or the circumstance of the client . Types of Financial Instrument: 1. Shares- This is a unit used as mutual funds , limited partnership, and real estate investment trust. The owner of shares in the corporation is a shareholder of a corporation. The risk involved and the return from investing in the shares are high. 2. Bonds-This is an instrument of indebtedness of the bond issuer to the holder.The common types of bonds include municipal bonds and corporate company. Most bonds pay fixed rate of interest income that is also backed by a promise from the issuer. 3. Cash Equivalents-These are the most liquid current asset found on a business balance sheet. These are short term commitments (It carries an significant risk of changes in the asset value). 4. Properties and Commodities-These include agricultural products, energy sources and metals. These helps in reducing the overall portfolio risk and return. 5. Pooled investments 5a. Mutual Funds- It is a common pool of money into which investors put their contributions to be invested in accordance with a stated objectives. This involves Market risk, Inflation risk, Credit Risk, Interest rate risk. 5b. Exchange traded funds- An ETF holds assets such as stocks, commodities, or bonds and generally operates with an arbitrage mechanism design to keep it trading close to it net asset valu>
