Maybelyn M.

Balitostos

BSA-5203

FINAL REQUIREMENT IN AUDITING IN CSIS ENVIRONMENT

1. Create a data flow diagram of the current system.

The expense cycle of the smith’s market starts with reviewing the goods to be reordered from
the vendors. Then the warehouse clerk prints the purchase order from the system and mails them to
the vendor.

Once the goods are received by the warehouse clerk from the vendor, the clerk reviews the
packing slips and updates the stock records. Then the warehouse clerk will start preparing the hard
copy of the purchase/summary from the system. The purchase summary is sent to the treasury clerk
for posting in the general ledger accounts. Then the warehouse clerk sends the invoice to the
accounting clerk.

The accounting clerk verifies the invoice and files it in a temporary file until the payment is
done to the vendor. Then the accounting clerk looks for payment dues and prints the check and
records in the digital cash register using the accounting system. After filing the invoice, the check is
mailed to the vendor. Then the accounting clerk prints the journal voucher that has cash
disbursement summary from the system and sends it to the treasurer clerk for posting to the general
ledger account. Finally, the treasury clerk will post the journal voucher data and summary of
purchase, cash disbursement to the general ledger.

(diagram on the next page)

 Warehouse Accounting
Tr Reviews the Treasury Clerk
Clerk packing slips Clerk
after receiving
the goods

Verifies the
Reviews the Updates the stock Posting journal
invoice and
stock for records voucher,
temporarily
reordering the summary of
filed until
items purchase, cash
disbursement
to the general
Purchase ledger
summary accounts
Checks for
payment
Prints and mails
Invoice
the purchase
order

Prepares and
prints the
Purchase Order
check

Check
Vendor

Records in digital
check register and
Prints the journal
voucher having cash
disbursement
2. Create a system flowchart of the existing system.

CUSTOMER SALES BANK

Supervisor
Customer Order
Treasury Clerk
Sale Signs a Log Cash
Check
Credit Card
Cash
Check Cash
Credit Card Check
Credit Card Counts, Checks
Records & deposit

Voucher
Receipts Cash Register Sales Journal
Drawer

Cash
Check
Supervisor General
Deposit Ledger

Treasury Clerk

3. Analyse the internal control weakness

 Access to the cash drawers by sales clerks requires more accountability. Each drawer is
accessed by various clerks throughout the day and cash may be withdrawn by any of them.
 The internal cash register tape should be used as a control to determine how much cash
(including checks, and credit card vouchers) should be in the register drawer.
 The shift supervisor does not sign for the specific amount of cash received or returned at the
end of the day. He simply logs the drawers in and out.
 The treasury clerk is unsupervised in the counting of cash.
 The treasury clerk has asset custody and responsibility for recording sales and cash in the
journal and General Ledger.