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Flowchartex-LionelectronicsQn

Flowchartex-LionelectronicsQn

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Published by Lihua Han

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Published by: Lihua Han on Mar 05, 2011
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07/04/2015

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This question relates to the Accounts Payables and Cash Disbursement processes in Lion Electronics.

You have been provided below a flawed flowchart. The flowchart contains several errors. Using your knowledge of correct flowchart documentation you are required to identify at least 14 drawing errors (not internal control weaknesses) in the flowchart. Drawing errors include the use of incorrect symbols and/or where the flowchart does not map to the narration provided below. Each error you identify should be clearly circled and numbered (i.e., 1, 2, 3, …., or 14) on the flowchart below. In the boxes below, write a brief explanation as to why each circled and numbered error is an error. Narration for Lion Electronics Lion Electronics (LE) is a small sized business, which produces a variety of electronic products such as integrated circuit boards and chips. LE has two branches in Singapore. A Receptionist, Sales Clerk/s, Sales Representative/s and a Sales Manager are employed at each branch. The capture and data entry of all customer sales orders occur at the branch offices. All other activities such as the ones related to the purchasing, Accounts Payable and Cash Disbursement processes are conducted at LE’s Head Office, located at Tuas Road. LE employs the procedures described below. Narrative The Accounts Payable clerk receives the Purchase Order and Signed Delivery Dockets from the Purchasing Department and Receiving Department respectively. On receipt of the invoices from the vendor at 4 pm, the Accounts Payable Clerk matches the invoices to the Purchase Order and Signed Delivery Dockets. Invoices that cannot be matched to the Purchase Order and Signed Delivery Dockets are forwarded to the Accounts Payable Supervisor for further investigation. The matched documents are filed in alphabetical order in the ‘invoices to be processed file’. At the end of each month, vendors would send monthly statements detailing the invoices outstanding and payments received during the month. These statements are normally only received during the first week of the following month at LE. On receipt of the statements, the Accounts Payable Clerk retrieves the vendor’s invoices, the Purchase Order and Signed Delivery Dockets, and confirms that the invoices are recorded on the statement. The Accounts Payable Clerk then checks that the invoice details match the statement. After checking, the Accounts Payable Clerk sorts the invoice and completes a disbursement voucher by writing each invoice number and the amount to be paid on the disbursement voucher, and then keys in the payables details into the computer located at the Head Office. The computer updates the accounts payables data. The matched PO, matched signed delivery docket, annotated disbursement voucher and confirmed invoices are then filed in the “disbursement vouchers to be paid” file. Each Friday morning, the computer automatically prints cheques for all of the disbursement vouchers entered during the week. The clerk immediately retrieves the

cheques from the printer. Error 1 Error 2 Error 3 Error 4 Error 5 Error 6 Error 7 Error 8 Error 9 Error 10 Error 11 . attaches the annotated disbursement voucher. The clerk sorts the cheques which are mailed to the vendor and files the reviewed disbursement voucher and invoice in the “paid invoices” file in alphabetical order. the Accounts Payable Supervisor signs the cheques after reviewing the documentation. and the confirmed invoice before forwarding to the Accounts Payable Supervisor in the internal mail. The signed cheques and supporting documentation are returned to the Accounts Payable Clerk. Every Monday morning.

Error 12 Error 13 Error 14 .

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