You were hired to assist Oman based Company in designing anaccounting system for Oman Co., Ltd. has developed a list of thejournals, ledgers, reports and documents that he thinks OmanCo., Ltd. The company asks you to complete the followingtasks:a) Specify what data you think should be collected on each ofthe following four documents: Sales invoice, purchaseorder, receiving report, employee time card.b) Design a report to manage inventory.e) Design a report to assist in managing credit sales and cashcollections.d) What types of journals, ledgers and blank forms for variousdocuments ( Sales invoices, purchase orders etc)

We will answer only first three subparts of the question as it is not specified which sub part is to…

Answered: You were hired to assist Oman based…

Accounting Information Systems

10th Edition

ISBN:9781337619202

Author:Hall, James A.

Publisher:Hall, James A.

Chapter15: Auditing It Controls Part Ii: Security And Access

Section: Chapter Questions

Problem 1P

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All of the following can provide source data except ________. A. a scanning device at the grocery store B. a utility bill received in the mail C. a bar code reader D. software to process the source data
You are internal auditor inspecting process used by sales representatives of a company selling office supplies to small companies. Before a new customer’s line of credit established, the sales rep must complete an online form that contains questions for which they must gather information from the new customer. The company asks that the sales reps gather this data (there is much more required, these are just the first few fields) as the first part of the data gathered: Company name, address, corporate form (sole proprietor, LLC, LLP, or S Corp), line of credit amount requested, authorized purchaser name and address, shipping address. For each of these fields, What error conditions need to be addressed? (What is an error condition?) For each, what do you recommend as a test/verification method? (You may find some that you believe don’t need a verification process)
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As orders are received from customers, a personnel in the sales department prepares a sales order and sends a copy to the credit department for checking the viability of the customer's credit. A copy of the sales order is then sent to the shipping department for the preparation of the goods for delivery, the delivery receipt and the sales invoice which is then sent to the customer. A copy of the sales order, delivery receipt and the sales invoice is then sent to the accounting department for recording. What area in the transaction cycle is deemed a control weakness instead of a strength?a. The approval of the customer credit.b. The preparation of the delivery receipt.c. The preparation of the sales invoice.d. None can be deemed as a weakness.
Hi! What is the data flow diagram of this process? Vendors send invoices to the AP department where they are reviewed and approved for payment. Once approved, the invoice and a cash disbursement voucher are sent to the cash disbursement department, where a check is prepared and sent to the vendor. A copy of the check, the invoice, and the voucher are returned to the AP department and filed.
You are a trainee in audit firm and you have been assigned to verify the follow balances for IJK Limited; Account receivables Sales Inventories Account payables Vehicles
Sales executives will negotiate and confirm the selling price and credit term with the customers directly. Once the sales have been confirmed in writing or by telephone, the respective sales executive will direct it to the sales clerk who is available at the point of sales for the creation of two sets of sales order and sales invoice simultaneously. A copy of sales order and sales invoice will be forwarded to administration department for recording purposes. Another set of sales documents will be forwarded to warehouse supervisor for dispatch of goods. Once the goods have been packed, the warehouse assistant will instruct the driver to deliver the goods, together with the invoice to the respective customer. Credit control assistants, Ms. Chan and Ms. Tan in charge of the collection of debts from the customers. They will chase for payments as and when required by directors, James or Tony. Money received from the customers can be cash, cheque or direct debit. Money received in cash or…
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The purchasing agent receives an inventory status report on his computer terminal from the inventory control application, which identifies the items that need to be reordered. The agent selects the suppliers and enters this information into the computer terminal to create a digital purchase order. He then prints and sends a copy of the PO to the supplier.When the goods are received directly into the warehouse, the warehouse manager counts and inspects them. The manager then creates a digital receiving report and updates the inventory subsidiary ledger from the warehouse terminal.A few days later, the supplier sends an invoice to the AP clerk who reconciles it with the digital copy of the receiving report. From her computer terminal, the clerk records the purchase in the purchases journal and records the liability by adding a record to the AP subsidiary ledger and assigning a due date.Each day, the cash disbursement clerk visually searches the AP subsidiary ledger from her terminal for…

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