Question

This company is flowcharting the steps in the order systems to evaluate for weaknesses and/or need for additional internal controls.   The process of this business area is as follows: Company is called “I got this” (IGT).

IGT has computerized part of the process for the computer center to read the Sales Order Database, and check the inventory master file for availability. It will then create the following documents:

1.a copy of each sales orders in the sales manager’s office computer,

2. a picking ticket in the warehouse,

3. a sales order notification in the accounts receivable office,

4.and a packing slip in the loading dock.

Using the information populated by the computerized systems, the other departments interaction is described as follows: The warehouse clerks then use the picking ticket, by logging into the system and displaying pending orders by accessing the sales order database, to pick the goods and record the amount picked on the picking ticket. He then prints the picking ticket. The parts and the picking ticket are then sent to the loading dock where the shipping clerk reconciles the picking ticket (displaying the picking ticket using the S/O database) and packing slip and prepares a bill of lading. Bill of lading is printed. The packing slip and bill of lading are attached to the goods and the goods are shipped via common carrier. The shipping clerk then keys in the sales order number on a terminal at the loading dock and enters a code to indicate the goods have been shipped. The computer sends updates to the Inventory management system and Accounts Receivable departments of the shipment and updates the Sales Order Database.

INSTRUCTIONS:

Create one file in Excel with two worksheets (use a new, blank file).

Name the first worksheet “Table” and create a Table of Entities and Activities.

Name the second worksheet “Flowchart” and create a Document Flowchart.

Answer 1