Portfolio Assignment - Auditing Process Management

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PORTFOLIO ASSIGNMENT From: Yen Hai Pham Student number: 351894 To: Mr. Remco Nijland Course: Auditing and Process Management Code: 58274

description

This is the assignment done as one of the requirements for the course Auditing Process Management at IBMS Saxion, Deventer.

Transcript of Portfolio Assignment - Auditing Process Management

Portfolio assignment

Portfolio assignmentFrom:Yen Hai PhamStudent number: 351894

To:Mr. Remco Nijland

Course: Auditing and Process ManagementCode: 58274

Table of ContentsAssignment 1 (week 2)2Assignment 2 (week 3):3Assignment 3 (week 4)4Assignment 4 (week 5)5Assignment 5 (week 5)7Final Assignment8Declaration of Non-plagiarism13

Assignment 1 (week 2)Create a context diagram from the narrative given below.Narrative ABC inc.First, the customers purchasing agent sends a purchase order to Johnny in the Sales Department to show him just what he needs in the way of part numbers, and quantity needed of each part number, as well as the date needed, and so forth. From this information, and other permanent information ABC has about the customer, Johnny (or his colleague Susan) creates a new sales order, which is placed on file. Dave, the plant manager retrieves the sales order. He decides what raw materials will be needed and compares this to the materials on hand, as shown in the raw-materials ledger and if materials are needed, he prepares a raw-materials purchase order, which is sent to various suppliers. Simultaneously, he prepares a job order, which is forwarded to the production cycle so good can be produced, as well as to Frank in Quality Control. Over in production, they are now using a partial JIT system that was installed 3 years ago and has greatly improved the whole process, although a small quantity of raw materials and components is kept in stock so that immediate introduction of inputs to the assembly line can occurThe finished parts the customer ordered, in the quantities the customer expects, come out of the production cycle and are forwarded to Quality Control Department so Frank can inspect the goods, matching the physical quantity and types against the sales order and the job order, and ultimately preparing a shipment approval form, which, always accompanied by the goods, is forwarded to Bob in shipping, who checks on-file customer shipping policies for that particular customer, so both a packing slip and bill of lading can be prepared. His copy of the shipment approval form is kept on file. A courier then signs the bill of lading and takes custody of the finished goods, along with the packing slip and the original bill of lading, and delivers all of the above to the customer. After the goods have been shipped, a signed copy of the bill of lading is transferred via internal mail to accounting, where, through the matching of the bill of lading with the sales order and customer information on file, an invoice is generated, causing accounts receivable to be updated. The customer gets a copy of the invoice, and another copy is filed.

Answer:

Figure 1. Context diagram for ABC Inc.

ActivitiesInputsOutputs

Handling an orderOrders from customersFinished and delivered products

Getting materials for productionOrders, historical recordsMaterials purchases

Producing the itemsMaterials, job orderFinished products

Controlling qualityFinished productsInspection report on the products

Shipping the ordersBill of ladingShipment approval

Figure 2. Table of explanation for ABC activities

Assignment 2 (week 3):Create a Data flow level 0 diagram from the narrative given for week 2.

Figure 3. Data flow level 0 for ABC Inc.Table of explanation for this diagram is similar to that of Assignment 1, because there is no new activities to be added in the system. The main difference between the two assignments is that Assignment 2 focuses more on the detailed processes, and it contains data storage as well, which are not mentioned in Assignment 1.

Assignment 3 (week 4)Create a flowchart from the narrative given below.Narrative Sales meetingAfter an perfect sales meeting you have been asked to make a document flowchart for the billing system at a consulting firm. This system is responsible for generating the payment to and from consultants, based on their hours worked, and bonuses earned.

The time consultants spend with a different company is being entered via a form called Billable hours. It sometimes takes six months before consultants enter their time, since the system cannot handle that, an administration clerk needs to adjust hours in the weeks manually.

Before a payment can be made, the HR department sends the latest update of the consultants file. Since there are a lot of shifts in the payment agreements and also even the consultants we work with. This information can not directly be uploaded in the system, the errors (or changes) are always checked and entered in the system, so we know they are correct.

After everything is completed, all payments for all consultants are made. Along of course, with the standardized reports for government, management and our own reconciliation (for the General Ledger).

Answer: (next page)

Figure 4. Flowchart for Consulting firmAssignment 4 (week 5)Create a flowchart from the narrative given below.Narrative A passion for chocolateAntoine Jacques, who was born in Antwerp on the first of January 1892, was a man of his time and his region - and a big fan of chocolate. Inspired and motivated by the prevailing business environment, Antoine founded a factory in the region of Verviers, in 1910. He recruited workers from among local professionals who specialized in the manufacture of chocolate, candy and gingerbread. He, in collaboration with a local chocolate manufacturer, employed 43 people over the course of a year. His passion for chocolate eventually lead to the launch of the famous chocolate bars, which lead, in 1936, to a patent being filed.The demand for Jacques chocolates continued to rise, even abroad. In 1993 the chocolate received the "Prix Wallonia" for export efforts. Meanwhile, the demand for this chocolate had grown so large that intensive investments were needed. In 1994, the factory expanded and, in the industrial area of Eupen, a modern building was built with an optimal infrastructure and a total of 31,400 m2 space.

In the 21se century Jacques Chocolatier remains true to its core values. Barry Callebaut, now President of Operations, holds the values of Antoine Jacques paramount. More than ever, quality comes first. Thus in 1996, the company installed a Chocolate Quality Control System (CQCS). Its goal is to control at least 90% of every production step. Barry Callebaut has personally taken responsibility for this system.One of the first production steps in the entire chocolate bar creating process, is the purchasing of the raw materials. In this case, chocolate beans from Brazil. A Senior Purchaser makes the final purchase every two weeks. After the contract is signed, the contract details are entered and recorded in the CQCS, and the contract itself is filed in the archives. Usually the order is under 9999,00.Outstanding payments under 9999,00 become the responsibility of the Accounts Payables department. They first extract the new payment from the CQCS and create a list of open payments to be carried out. After every update the list needs to be approved by the accountant. If the list is checked, approved and confirmed in the CQCS, it becomes a file called 'final statements'. If there are mistakes, the list is updated, after which the accountant will look at the list for a second time. Any mistakes after that will stop the payment process totally.The Financial Control Manager and the President of Operations will then receive the final list and both need to sign it (in that order), with a digital signature, after which the CQCS uploads the file to the bank. The bank will perform the payments. For foreign payments above 10.000,00, a senior bookkeeper manually prepares a list of those outstanding payments. This list is immediately well prepared, this is not a proposal. The bookkeeper will get Barry to sign the list and then mails this document to the bank, which performs the payments.

Answer:

Figure 5. Flowchart for Jacques Chocolatier

Figure 6. Flowchart for Jacques Chocolatier (continued)Assignment 5 (week 5)Create a Entity Relationship Diagram from the narrative given below.Narrative EdubeastEduBeast a major publisher of school textbooks has experienced negative customer-reaction, including loss of market share, due to stock-outs, late orders, lack of responsiveness, and other missteps, all caused by a dated and ineffective information system; therefore, they have decided to implement a central data system that coordinates all communication between the different departments, divisions, and processes. You, as a senior manager of Good Conduct, Inc., a designer of enterprise systems and the firm engaged to design the infrastructure of the new system, are responsible for documenting a part of the new system called the Publication Dispatch Information Sequence. The chief information officer of EduBeast has drafted a preliminary narrative and a context diagram (both below) explaining what the basic processes and needs for this system are.

The Publication Dispatch Information SequenceOrders can come in from two different sources: either an institutional bookstore, or an individual student. If an institutional bookstore, like California University Southwests bookstore, The Warrior orders the books in large quantities, a standard dispatchment profile (SDP) is opened. Heres what goes into creating this record: Once a week, EduBeasts account managers (representing clients like The Warrior) submit batch tickets, with all their clients book orders, to Jim, a clerk in data-entry. Jim then matches these tickets with detailed customer information (name and location of institution, for example) he has retrieved from the bookstores master file. If the batch ticket is 1. for an order above a certain quantity of books or 2. if the batch ticket is for a non-favored institution, a credit history request is sent to PRP, a credit bureau with detailed credit information on all individuals and organizations going back 10 years. Of course, an in-house credit-history check is done on all orders, no matter from whom or what size, when the system automatically checks the accounts receivable aging report. When the credit information comes back from PRP in the form of a credit status notice, the SDP is forwarded to the account manager for purposes of informing the customer that approval or disapproval has been determined and to keep the customer updated. On the other hand, if the order originates with a student, an SDP is also created, but the process is much simpler, as it is done by credit card. The customer, through our website, merely transmits his or her sales order by filling out the online form, following the payment procedures and clicking all the buttons. In either case, the SDP is filed and the master file of either the bookstore or student is updated with the SDP. In order to expedite orders for either commercial or student sales orders (to avoid costly delays, which was one problem that plagued us), the SDP is also forwarded to Frankie in inventory so he can create a provisions requisition. He reads the inventory file to determine quantities on hand versus quantities needed as noted on the SDP. If quantities on hand are sufficient, Frankie D. forwards a copy of the provisions requisition to the warehouse to requisition the books. To the extent that quantities on hand are not sufficient to cover the order, the provisions requisition is forwarded to the binding cycle for manufacture of the books needed. Both the warehouse and binding cycle respond to Frankies requisition with turn-around bulletins, which provide a time estimate for both the retrieval and the completion of goods requisitioned. These are forwarded via internal mail to Jay in order assembly. Jays job, among other things, is to create a general order disposition summary (GODS). He retrieves the SDP and confirms the information on it with the bookstore and student master files, verifying all of this against the documents from the warehouse and binding cycle. He forwards the GODS to the shipping department so they can arrange the shipment and to the relevant account manager in case bookstore personnel should need to be informed of the status of their order. He also files a copy. Finally, after the goods have been shipped, Susie, a clerk in the administrative department, receives the signed bill of lading and packing slip from Dean in the shipping department. Matching this against a copy of the GODS to verify, she generates a shipment confirmation which is used to update the SDP to close it out. A copy goes to accounting so they can invoice the order. Also, copies go to both the account manager and/or the student (in electronic form) and update both their master files to show that the shipment has taken place.

Answer:

Figure 7. Entity-Relationship Diagram for eduBeast

Final AssignmentCreate a Context diagram, a DFD level 0, a flowchart and ERD from the narrative given below.Narrative Maran YachtcharterIn the Dutch province of Friesland, hiring a boat is one of the most popular ways to pass the summer holiday. Tourist set out to discover the Frisian lakes, which are surrounded by many enchanting villages and old-fashioned towns. These towns have often well-equipped marinas and offer plenty of (cultural) activities.The company of Maran Yachtcharter has been involved in boat hiring in Friesland for over 36 years. Their charming marina is ideally situated in the Friesland lakes area, close to Sneekermeer lake. This base, in a unique water sports area, is the perfect place to start a sailing holiday.Figuur 1. Falcon boat

The composition of Marans fleet, varies from a large number of fully equipped polyester Falcons to cabin sailing yachts and motor yachts ranging from 22 to well over 34 feet, means that we can offer almost everyone the yacht they are looking for. Figuur 2. 34 ft boat

When a customer wants to rent a boat, he has two options. Either he goes online and creates a reservation via the website of Maran or he goes directly to the front desk of Maran and fills in a rental form. The online reservation is stored in the Captians Relationship Monitor Database (CRMD). However, the online reservation for the boat needs to be printed out by the customer, and this hardcopy needs to be shown to the front office upon arrival. Simon (the front desk clerk), who has been working for Maran ever since 1999, usually deals with the customer. When a boat is available (usually Simon looks in the Marina to see is that type of boat is left), the rental form gets entered into the CRMD, the online reservation only gets checked with the information in the CRMD (this is possible since the customer needs to provide this information on paper as well). After also identifying the customer via any form of ID with a picture, the clerk asks for a 5% deposit. The owner of Maran is very clear that without the correct paper, the clerk can not continue the process. If Simon messes up (for example gave away an already reserved boat) the owner of Maran usually calls his neighbours to see if they have one left, which until this far, has always been the case. Maran then handles the payments, because neighbours would act likewise.

After the forms and IDs are cleared, the system will indicate if Simon is allowed to deal with the customer reservation himself, or that his boss (Mick, the front desk manager) needs to deal with a high priority customer. The owner of Maran has set this deviation on 789,-. This is roughly a weeks rent for a relatively exclusive 34ft yacht. Also when a customer returns that has a bad reputation (for example not cleaning boats / having a lot of accidents) Mick deals with the situation. In these cases, the customer usually is given a higher deposit.Simon as well as Mick, walk with the client to the fleet master, where they collect the keys for the boat. After instructions, the customer can set sail (or start up the motor) and is on his way. The fleet master in the meantime will enter the ship details into a separate module in the CRMD, which clearly shows the relationship between the Captain and the boats he rented. When the customer comes back from his trip, he will return the keys of the boat to the Fleetmaster, who will perform a global check of the boat. If approved (so no damages on sight) he instructs a shipmate to clean the boat. The customer always goes on to pay the rent at the front desk. However, the customer pays the full rental amount, because the 5% deposit is hold back until the boat is cleaned and no other hidden defects are detected. After cleaning the boat, the shipmate hands in a checklist to the Fleetmaster, on which is stated what has been cleaned and to what extend (from light cleaning to heavy cleaning). If the heavy cleaning exceeds more than 70% of the total cleaning the customer is informed that he will not get his deposit back. The approval for releasing the deposit back to the customer, as well as the fine for heavy cleaning are registered in the CRMD. If the deposit is released, the bank gets notified to pay the amount owned. If the deposit is not released, the bank is instructed to transfer that specific amount to a bank account owned by Maran, that is used to save up money to buy new ships.Both actions result in automated email to the customer, thanking him for his business and some survey questions on the experience of boating in Friesland.

Answer:Context diagram, data flow level 0 diagram and flowchart for Maran, respectively:

Figure 8. Context diagram for Maran

ActivitiesInputsOutputs

Registration for rentalsCustomer information, order and IDs at front deskRental agreement, deposit payment

Checking boat availabilityRenting data at that momentBoats from either Maran or its neighbor

Preparing for sailingBoat details, keys, instructionsSystematic module for boat controlling

Cleaning boatsInspection the boatCleaning level report

Deposit refundBoat cleaning reports, boat detailsDeposit releasing approval, deposit non-refunded form additional charges

Preparing financial reportsAccounts transactions in cashStandardized reports

Figure 9. Table of explanation for Maran activities

Figure 10. Data flow level 0 for Maran

Figure 11. Flowchart for Maran

Figure 12. Flowchart for Maran (continued)

Figure 13. Flowchart for Maran (continued)Declaration of Non-plagiarism

Undersigned:Student Name: Yen Hai Pham (student number: 351894)

Hereby declare that:1. The following work is my/our own work and no authors, rights/copyrights have been violated.2. All sources (inclusive Internet/Webpages) used have been stated; source indications as footnotes.3. The following work does not contain more than 5% work of other people or sources.Place: DeventerDate: March 27, 2015Signature,

Yen Hai Pham N.B. Any violation of above mentioned own work declaration will be deemed as fraudArt. 14 OER

The above declaration must be present in all officially graded documents (reports,)

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