Accounting Information Systems, 9e 35
Payroll
department
Department
supe rvisor
Computer
operations
Complete d
time sheets
Review and
sign
Complete d and
approved
time sheets
Key time
she e t data
Create current
week’s payroll
activity data
Curre nt
week’s
payroll
Create current
week’s pay data
Accepted
input
M-2
M-3
P-3
P-2
FIGURE SM-14.12 Problem 2, Part c Solution—Annotated Systems Flowchart for Nerd Brigade
36 Solutions for Chapter 14
Cashier
Employee
P. 1,
A
Fill in hours
worked
Complete d
time sheet
Computer
operator
Sign
checks
Signed employee
checks with stubs
and bank checks
Check–signing
machine obtained
from cashier
Compare dollar
total and number
of checks
Signed employee
checks with stubs,
stubs for DD che cks
DD de posit slips
and bank checks
P-5
P-6
FIGURE SM-14.12 Problem 2, Part c Solution—Annotated Systems Flowchart for Nerd Brigade (continued)
Accounting Information Systems, 9e 37
Compute r
Department superv isor
Human Re sources
Department
Production supe rv isor
Applicant/employee
employment
application
Record
employment
application
Employme nt
application
screen
Selected
applicants
FIGURE SM-14.13 Problem 14-3 Solution—Systems Flowchart for Oxford Supplies with an Enterprise System
38 Solutions for Chapter 14
Compute r
Department supe rv isor Human Re sources
Production supe rvisor
Employee
review
screen
Employee performance
review process, re cord
review data, route for
approvals, record payroll
action notice
Employee
review
Division accountant
Employee
review
(approved by
foreman)
Enter new wage
(with controller)
P. 3,
A
FIGURE SM-14.13 Problem 14-3 Solution—Systems Flowchart for Oxford Supplies with an Enterprise System (continued)
Accounting Information Systems, 9e 39
FIGURE SM-14.13 Problem 14-3 Solution—Systems Flowchart for Oxford Supplies with an Enterprise System (continued)
40 Solutions for Chapter 14
Computer
Beginning, throughout,
and at end of each day
Reconcile batch
totals and request
approval
Employee
Record approvals
and reconcile total
hours w orked
Payroll data
approval screen
Record
attendance
and job
tim es
Prepare batch
totals and
dow nload
data
Cashier
Electronic time
management system
Department
supervisor
Miscellaneous
Payroll and
other departments
FIGURE SM-14.14 Problem 14-3 Solution—Systems Flowchart for Nerd Brigade with an Enterprise System
Accounting Information Systems, 9e 41
P 14-4 ANS. a. Table of Entities and Activities for Rex Corporation
Entities
Para
Activities
Department managers
1. Prepare the termination notice.
2. Send the termination notice to the HR manager and payroll
processing.
8. File the termination notice and the payroll change form.
Payroll service bureau
HR manager
9. Request statistical reports.
PC
10. Print quarterly reports.
HR manager
12. Send summary statistics to the VP of HR.
VP HR
14. File the list of terminated employees.
Computer operations
11. Send the list of terminated employees to the database administrator.
Personnel
Payroll
change
Summary
statistics
FIGURE SM-14.15 Problem 4, Part b Solution—Context Diagram for Rex Corporation
HR manager
3. Conduct the exit interview and prepare the exit interview form.
4. Enter the statistical data into the PC.
PC
5. Update the termination statistics file.
7. Send the payroll change form to the payroll service bureau.
42 Solutions for Chapter 14
1.0
Termination
notice VP
HR
Summary
statistics
3.0
Payroll
processing
Payroll
change
Payroll change s,
te rmination notice s
4.0
PC
Terminated
employees list
Summary
statistics
Terminated
employees
list
FIGURE SM-14.16 Problem 4, Part c Solution—Physical DFD for Rex Corporation
Accounting Information Systems, 9e 43
P 14-4 ANS. d. Table of Entities and Activities (Annotated) for Rex Corporation
Entities
Para
Activities
Process
Department managers
1. Prepare the termination notice.
Payroll processing
6. Prepare the payroll change form.
2.0 Prepare employee
payroll.
8. File the termination notice and payroll
change form.
HR manager
9. Request statistical reports.
14. File the list of terminated employees.
Computer operations
PC
10. Print quarterly reports.
1.0
Conduct exit
interv iew
3.0
Prepare
quarterly
Termination
statistics
Terminations,
exit interviews
Termination
FIGURE SM-14.17 Problem 4, Part e Solution—Logical DFD for Rex Corporation
4. Enter statistical data into the PC.
PC
5. Update the termination statistics file.
44 Solutions for Chapter 14
P 14-4 ANS. f.
Operations Deficiencies
• Effectiveness of operations. Department managers should be briefed regarding
the information gathered in the exit interview. In this way, managers would
receive any negative employee feedback and would have an opportunity to
respond and to improve their operations and performance.
Information Systems Deficiencies
• Completeness of input. Transmittals and batch totals are needed to ensure the
complete receipt and input of termination notices. As depicted, we cannot be
sure that these notices reach the HR manager or payroll processing.
Accounting Information Systems, 9e 45
4.1.1
Calculate
gross
pay
Tax rates
data
Gross
pay
Validate d
attendance
time records
4.1.2
Calculate
B
C
NOTES:
A = Employee status, payment code, wage, salary, commission rate, overtime rate
B = Employee name, address, tax status, IRA, 401(k), union dues, life insurance
C = Tax rates
D = Old quarter-to–date and year–to–date totals
E = New quarter–to–date and year–to–date totals
FIGURE SM-14.18 Problem 5 Solution
46 Solutions for Chapter 14
P 14-6 ANS.
Process
Subsidiary Functions
Inputs
Outputs
1.0 Perform data
maintenance
None
Current tax rates
Tax rates data
4.0 Pay employees
4.1 Prepare paychecks
• Validated attendance
time records
• Tax rates data
• Employee/payroll
master data
• Employee paychecks
• Payroll register
• Employee/payroll
master data
4.2 Prepare
disbursement
voucher
Payroll register
• Disbursement
voucher
• GL disbursement
voucher update
4.3 Prepare payroll
transfer check
Disbursement voucher
Payroll transfer check
Table SM-14.1 Problem 6 Solution—Summary of the Payroll Processes, Inputs, and
Outputs
Accounting Information Systems, 9e 47
P 14-7 ANS. Students should not have any problem finding payroll processing modules. Most,
if not all, enterprise packages have such modules. Among the vendors that provide
outsourcing are ADP and Paychex; many others also exist.
Students may identify many positives and negatives for each approach; a few are
listed here:
Outsourcing
Positive:
• Payroll processing is not a core competency.
• May be less expensive to outsource.
P 14-8 ANS. Students’ responses should vary significantly. One purpose of this exercise is to
expose students to professionals and increase their comfort level when in a
professional environment.
P 14-9 ANS. Students’ responses should vary significantly. The intent is to help them link the
control issues with actual crimes and understand that controls are not an academic
exercise but have a real impact on people and organizations.
48 Solutions for Chapter 14
2. From the printouts, ensure that the tables are populated with three or more
records and that there is one form for each table for entering data into that table.
Check the forms for appearance and functionality.