Page 333 - Accounting Information Systems

304 PART II Transaction Cycles and Business Processes

receipts department records the cash receipts in the cash control, AR control, and cash accounts. Finally, the
receipts journal. The clerk then prepares a bank deposit general ledger clerk files the account summaries in the
slip and sends the checks and two copies of the department.
deposit slip to the bank. Periodically, the bank returns a
Required
deposit slip to the cash receipts department, where it is
Your public accounting firm has been retained to docu-
reconciled with the cash account. The accounts receiva-
ment Orbits’ accounting system and review its internal
ble department reviews the remittance advices and
controls. Your task is to:
updates the accounts receivable subsidiary ledger. The
a. Create a separate data flow diagram for each major
clerk files the remittance advice and prepares an account
subsystem described here (purchase, payroll, fixed
summary, which she sends to the general ledger.
assets, and sales orders).
b. Create a separate system flowchart for each major
General Ledger Department subsystem.
The general ledger clerk receives account summaries c. Analyze the internal control weaknesses of each
from the accounts receivable and the purchasing and in- major subsystem. Model your response according to
ventory control departments. The general ledger clerk the six categories of physical control activities
accesses the department PC and posts to the inventory specified in the SAS 78/COSO control model.