Accounting Information Systems, 9e 55
Receipt
P. 1,
A
Computer Deliv ery Services
Reche ck order
contents
Key in
confirmation of
orde r contents
Customer
database
Print delivery
dire ctions and
rece ipt
Deliv ery
Dire ctions
Order
database
Error routine
not shown
P-8
P-9
FIGURE SM-10.24 Polis Grocers Annotated Systems Flowchart (continued)
56 Solutions for Chapter 10
P 10-3 ANS.
1. L: Personnel termination controls should include eliminating user logon IDs
from the system.
5. J: Program change controls require that all changes to application programs
be authorized and tested prior to implementation.
6. B: The shipping clerks should scan the picking ticket (a turnaround
document) to record the items and quantities picked and to be shipped.
This should reduce the errors associated with manually entering the item
numbers and quantities. (Before accepting the shipment, the shipping clerk
should verify that the items and quantities of picked goods agrees with the
picking ticket.)
7.G: Shipping clerks should receive some positive notification from the
computer (e.g., the computer prints the packing slip) that the shipment has
been recorded. Until they receive that notice, they should not consider the
shipment as recorded.
P 10-4 ANS.
1. L 6. F
2. H 7. E
P 10-5 ANS. See Figure SM-10.25. The following explanations apply:
• The customer orders goods, and this triggers bubble 1.0, validate sales order
(T1).
• The inventory is checked for availability (2), and the marketing data is
updated to record the request (3).
• The goods are picked, and the picking ticket is completed by entering the
quantities picked. The goods and the completed picking ticket (2) are sent to
the shipping department.
• The completed picking ticket triggers bubble 3.0, execute shipping notice
(T1).
• A record is read from the sales order master data (2) to determine that the
goods have been ordered and should be shipped.
58 Solutions for Chapter 10
The following data stores are used in the order entry process (see the chapter text
for more detail):
• Inventory master data store/table has a record of each item inventory. Data
elements include item number, quantity on hand, quantity allocated for
shipment, quantity on order, cost, price, and warehouse location.
Accounting Information Systems, 9e 59
B/AR/CR
process
1.0
Validate
sale s
order
2.0
Complete
picking
ticke t
Customer
master data
Sales order
notification Picking
ticke t
454
4
5
T1
5
5
FIGURE SM-10.25 Problem 5 Solution—Annotated Text Figure 10.4
60 Solutions for Chapter 10
Control Goals of the Davidson Company’s OE/S Business Process
Control Goals of the Operations Process
Ensure
effectiveness of
operations:
Ensure
efficient
employment
of resources
(computers
and people)
Ensure
security of
resources
(inventory,
customer
data)
For sales order
inputs (i.e.,
customer orders),
ensure:
For sales
order
master
data,
ensure:
For sales order
notification inputs
(i.e., shipment
data), ensure:
For sales
order
master
data,
ensure:
Recommended control plans
A
B
C
IV
IC
IA
UC
UA
IV
IC
IA
UC
UA
Present controls
P-1: Review customer orders
for accuracy
P-1
P-1
P-1
P-1
P-5: Confirm input
acceptance
P-5
P-5
P-5: Enter shipment data in
shipping
P-5
P-5
P-5
P-5
P-5
P-6: One-for-one checking of
picking ticket and goods
Missing controls
P-2
P-2
P-3
P-3
P-3
P-3
P-4: Compare input data with
Accounting Information Systems, 9e 61
Control Goals of the Davidson Company’s OE/S Business Process
Control Goals of the Operations Process
Ensure
effectiveness of
operations:
Ensure
efficient
employment
of resources
(computers
and people)
Ensure
security of
resources
(inventory,
customer
data)
For sales order
inputs (i.e.,
customer orders),
ensure:
For sales
order
master
data,
ensure:
For sales order
notification inputs
(i.e., shipment
data), ensure:
For sales
order
master
data,
ensure:
Recommended control plans
A
B
C
IV
IC
IA
UC
UA
IV
IC
IA
UC
UA
M-2: Review open sales
orders (tickler file)
M-2
M-2
M-3: One-for-one checking of
customer order and sales
order
M-3
M-3
M-3
M-3
FIGURE SM-10.26 Problem 6, Part a Solution (Partial)—Control Matrix for Davidson Company
M-4: Independent shipping
M-5: One-for-one checking of
62 Solutions for Chapter 10
Exhibit SM-10.5 Problem 6, Part a Solution (Partial)⎯explanation of Cell Entries for
Control Matrix in Figure SM-10.26
Note: To simplify the problem, the business process does not include inventory master data and
does not describe any data entry at shipping. Because no entry or update happens at shipping, the
UC and UA columns for the shipping notice input do not apply.
P-1: Review customer orders for accuracy.
P-2: Programmed edit checks.
Note: We assume, for example, that input order quantities are edited for
reasonableness.
P-3: Populate input screens with master data.
Effectiveness goals A and C, efficient employment of resources: Because the sales
order input screens are populated with data from customer master data, the sales
clerks use fewer keystrokes for each input (efficiency), enter data more quickly,
and provide timelier acknowledgement of customer orders and shipment of goods
to customers.
Accounting Information Systems, 9e 63
P-4: Compare input data with master data.
Security of resources and sales order input validity: The order entry clerk
P-5: Confirm input acceptance.
Sales order input completeness: The computer informs the clerk that the input has
P-6: One-for-one checking of picking tickets and goods.
Note: We assume that the warehouse clerk compares the goods to the picking
ticket as the picked quantity is recorded.
Effectiveness goal C, efficient employment of resources: By comparing the goods
to the picking ticket (and correcting any picking errors) in the warehouse, rather
than later in shipping, we can process shipments in a more timely manner and
more efficiently (the warehouse clerk is in a better position to correct picking
errors than is the shipping clerk).
the goods entered are shipments that will be valid and accurate.
M-1: Enter data close to the location to where customer order is prepared.
Effectiveness goals A and C: Customer orders are mailed and then entered by
sales clerks. This delays the entry, acknowledgement (goal A), and shipment (goal
C).
64 Solutions for Chapter 10
M-2: Review open sales orders (tickler file).
Effectiveness goal C: A tickler file of open sales orders allows the shipping
M-3: One-for-one checking of customer order and sales order.
Sales order input completeness, sales order input accuracy, sales order master
data update completeness, and sales order master data update accuracy: If the
sales clerk compared the customer order to the accepted order display, we could
ensure that the order was entered and was entered correctly and that the master
data was correctly updated for all inputs.
M-4: Independent shipping authorization.
Security of resources: To provide security over merchandise inventory, the
M-5: One-for-one checking of goods, picking ticket, and bill of lading.
Security of resources: By requiring that data on the bill of lading be compared
with that on the picking ticket and then that these data sets be compared to the
actual goods being shipped, this plan ensures that inventory shipments have been
authorized. It also ensures that shipping notice inputs are represented by an actual
shipment of goods.
Accounting Information Systems, 9e 65
• As data is entered into the system, we might find automated data entry,
programmed edit checks, populate input screens with master data, and
compare input data with master data.
66 Solutions for Chapter 10
Customer
Customer
order
Open, re v iew
for accuracy
Correct
errors
Correct/acce pt
order
Customer
master data
Record and
print order
A
A
Picking
ticket
Attach the
picking ticket to
the goods
B
Carrier
Picking ticket
(annotated)
Sales order department Computer Ware house Shipping
Picking ticket
(annotated)
Bill of lading 2
P-1
M-1
P-4
P-2
M-4
M-5
FIGURE SM-10.27 Problem 6, Part b Solution—Annotated Systems Flowchart for Davidson Company
P 10-7
ANS. Solutions will vary according to the tables selected. However, the following guidelines
should be helpful for grading the solutions:
1. From the file, ensure that the tables are linked in relationships with cardinalities.
2. From the printouts, ensure that the tables are populated with three or more records and
68 Solutions for Chapter 10
Stock
Pick
Shipments
Sales
Invoices