Page 277 - Accounting Information Systems

248 PART II Transaction Cycles and Business Processes

h. voucher register 8. INTERNAL CONTROL
i. open vouchers payable file Using the flowchart for Problem 8 of a purchases sys-
j. receiving report file tem, identify six major control weaknesses in the sys-
k. closed voucher file tem. Discuss and classify each weakness in accordance
with SAS 78/COSO.
l. check register (cash disbursements journal)
9. PURCHASE DISCOUNTS LOST
6. SOURCE DOCUMENTS Estimate the amount of money accounts payable and
IDENTIFICATION cash disbursements departments could save if a basic
batch-processing system were implemented. Assume
Explain, in detail, the process by which the information
that the clerical workers cost the firm $12 per hour, that
is obtained and the source of information for each of the
13,000 vouchers are prepared, and that 5,000 checks are
fields in the expenditure cycle files. (See Figure 5-15
written per year. Assume that total cash disbursements
for a complete listing of files and fields.)
to vendors amount to $5 million per year. Because of
sloppy bookkeeping, the current system takes advantage
7. DATA PROCESSING of only about 25 percent of the discounts vendors offer
for timely payments. The average discount is 2 percent
Explain how the processing procedures would differ, if
if payment is made within 10 days. Payments are cur-
at all, for the transactions listed in Problem 6 if a com-
rently made on the 15th day after the invoice is
puter-based system with
received. Make your own assumptions (and state them)
a. a basic batch-processing system were implemented. regarding how long specific tasks will take. Also dis-
b. a batch-processing system with real-time data input cuss any intangible benefits of the system. (Don’t worry
were used. about excessive paper documentation costs.)

PROBLEM 8: INTERNAL CONTROL

Vendor Purchases Inventory Control Receiving Accounts Payable Cash Disbursments General Ledger
Purchasing Goods Arrive
Prepares Three 3 from Vendor
Purchase
Copies of PO with Packing Slip
Order
Cash
Packing Invoice Disbursement
Slip Voucher
Inventory
Ledger
Purchase
Order
3 AP Ledger Check
2 Copy
1 Purchase 3
Purchase
Order Order
2 2
Receiving 1 Cash 1 General
Report Disbursement Check Ledger
Voucher
A
Cash
Invoice Disbursement
Voucher
Invoice
Check Check
Copy Copy
Check

A