AIS Tutorial 3

Ms. Susan See Tho

Note: These tutorial slides are created by tutor to cater to the needs of students in tutorial groups J8 and J10 (AY2011/12 Sem 2 AIS). Hence please restrict distribution to avoid confusion.

Overview of Tutorial 3
Fig 12-3 (pg 353) - Level 0 diagram Sales Order Flowchart (lecture slides)
Ways to improve efficiency in taking sales order Credit approval: general vs. specific Ensure inventory availability How best can backorders be handled given the companys business model Handling customer inquiries and maximizing satisfaction

Shipping Flowchart (lecture slides)

Picking by Warehousing department
Ensure efficiency with use of technology how ? What are the reconciliation checks ?

Packing & Shipping the order by Shipping department

What documents will be produced and how are they routed/kept ? Efficiency considerations: location of distribution centers, shipping methods, tax regimes

Figure 12-3 Romney (pg 353)

Overview of Tutorial 3
Billing & AR (lecture slides)
Accuracy & Timeliness in billing crucial Technological means to enhance billing efficiency AR maintenance methods: open invoice vs. balance forward (with cycle billing)
Which method to use for what type of businesses ? Internal vs. external credit memos Monitoring AR (slide 56)

Controls in Revenue Cycle

Segregation of duties lecture slides 57 64 Be able to identify threats for each business case and recommend the corresponding control measures in Revenue Cycle Table 12-1 (pg 356-7)

Applying Tutorial 3 to Group Project

When do you account for a sale in KCLs books? What control features should be shown on source documents for revenue generation? What credit assessment/approval procedures/forms and records does KCL need to document for new customers? What source documents and control features on documents are required for customer payment? As a control purpose, what report do you need to document to show the outstanding debt amount for each customer?

Tutorial 4
J10 (11am to 1pm) Tutorial 4 Prepare a table that clearly shows segregation of duties throughout all expenditure cycle activities Q1 Q2 A

B C

J8 (2pm to 4pm) Tutorial 4 A B C D Prepare a table that clearly shows segregation of duties throughout all expenditure cycle activities Q1 Q2a Q2b