Professional Documents
Culture Documents
Case Study Final 2
Case Study Final 2
Background
Bethlehem, Pennsylvania. Originally Smith sold only produce grown on his family
farm and orchard. As the market’s popularity grew, however, he added bread,
canned goods, fresh meats, and a limited supply of frozen goods. Today Smith’s
Market is a full range farmers’ market with a strong local customer base. Indeed, the
market’s reputation for low prices and high quality draws customers from other
Pennsylvania cities and even from the neighboring state of New Jersey. Currently
Smith’s Market has 40 employees. These include sales staff, shelf stockers, farm
Viewed in this way his market is a well-known of all in the city of Bethlehem.
With this strategy it enables the company to become a global leader in the
electronics distribution industry. However, Smith has noticed a decline in profits and
sales, while his purchases of products from resale have continued to rise. Although
the company does not prepare audited firm to assess his company’s sales
procedures and controls, Smith noticed that he must create a solution for his market.
controls with Data Flow Diagram and System Flow Chart is one of the solution in this
scenario.
1993). Due to the complex interrelations among purchaser, supplier and payers,
which characterize the Smith’s Market Accounting System, the way Robert Smith
manage revenues and accounts receivable differs substantially from that in firms in
In this study it shows that the mode of payment by the cash, check or credit
card to the clerk is having a deficiency for the clerk has many roles in a market and
he must submit his collection every end of the day in to the main branch. Smith
and stabilize revenue streams and improve collections has thus sparked the creation
of a new industry of consultancies that specialize in helping their clients improve their
CareerBuilder and Payscale to name but a few of the players in this new and
growing industry.
This study implicates Mr. Robert Smith, the CEO of Smith’s Market.
IV. Objectives
V. Relevant Facts
not in place. They must pay attention of what happen in a market in order to find
solution in there Accounting Department. Also the segregation of some duties is not
really implemented in a good condition with some strict advices to a head of the
market.
Access to control to the billing and accounts receivable records that are part of
the revenue cycle is just as important as the physical control devices over cash and
converted into cash. However, Smith uses Point-Of-Sale system where you can
extend credit to the customers. Obviously, this assumption is not valid for all types of
business enterprises. Example: Smith’s Market that exchange goods directly for
cash in a transaction that is consummated. This example, only cash, checks and
bank credit card that is valid but not put in a separate drawer. Smith’s Market is
payments per day were always put into their main branch. This action leads to
confusion of some inventory or assets like cash. They must reduce this risk in order
A deficiency in design exists when (a) a control necessary to meet the control
objective is missing or (b) an existing control is not properly designed so that, even if
the control operates as designed, the control objective would not be met. A
deficiency in operation exists when a properly designed control does not operate as
designed or when the person performing the control does not possess the necessary
most difficult to achieve. At the most basic level, it means that no single
a single person can carry out and conceal errors and/or irregularities in the
more accountability, consider using two people to balance the cash register.
One person will count the drawer and create the daily cash report, while the
other person prepares a bank deposit. Both staff members should sign the
report indicating they are responsible for the figures shown. While no system
can prevent fraud, this audit trail will help discourage collusion among
employees.
their own cash drawer. Have the cashier recount the cash in the drawer to
verify the beginning balance. If you are a small store with only one register,
the cash most likely stays in the drawer overnight. If this is your situation, the
order for the market to have a heavy-duty. This data help to enable segregate
proper duties provides information about the outputs and inputs of each entity
and the process itself. Visualizing each element makes it easy to identify
system flowchart that can operate and also use in a computer base. Many
businessmen use this system in order to check some inventory and cash
to some up all transaction from one to the other. When all the bar codes are
scanned, the system automatically calculates taxes, discounts, and the total
for transaction. In the case of credit card, transactions, the sales clerk obtains
transaction approval from the credit issuer via online connection. This system
FIGURE 1.B
STSTEM ORDER BATCH PROCESSING SYSTEM
The following are the advantages and disadvantages of ensuring duties are
segregated:
Advantages:
Disadvantages:
difficult.
Asset misappropriation
Territorial Disputes
that no one person has sole control over the entire cash handling
Figure 2.A, from customer to bank must coincide from the beginning.
teller machine or the automatic banking machine that could help the
store to become automatically sell. But this data need only in credit. A
receipt in the bank usually happens as a single event at the end of the
business day. This system uses the technology that automates manual
procedures.
FIGURE 2.A
FIGURE 2.B
cash receipts:
Advantages:
It prevents theft.
Disadvantages:
presented.
accounts.
which is simply the act of tracing a transaction through market records and
procedures. The walkthrough will help provide an understanding of process
and control design, particularly with respect to controls that may help prevent
effectively and actually placed in operation. The Figure 3.A is a data flow that
could help the department for having an evaluation in internal control. This
order processing system enables to align inventory and orders across multiple
channels, complex shipping schedules and order profiles, and also reporting,
analytics, and evaluation. This tool or platform that tracks sales, orders,
partnerships necessary for products to find their way to the customers who
that touches nearly every facet of how your business operates, including
the company. Figure 3.B illustrates a sales order system that uses a batch
processing and sequential files. Because this system uses the sequential file
structure for its accounting records, either tapes or disks may be employed as
the physical storage medium. For day-to-day operations, however, tapes are
inefficient because someone must mount them on a tape drive and then
dismount the tape when the job ends. This approach is a labor-intensive and
expensive. The constant decline in the per unit cost of disk storage in recent
years has destroyed the economic advantage of using tapes. Today, tapes
are used primarily as backup devices and for storing archive data.
FIGURE 3.A
FIGURE 3.B
POINT-OF-SALE SYSTEM
The following are the advantages and disadvantages of performing a self-evaluation
Advantages:
profile.
controls framework through the organisation.
Disadvantages:
requires.
It is not always appropriate to reveal certain risks, for example
VII. Conclusion
Smith’s markets are much in need to have a progress with regards to their
diverse role at a time and we see that this is one of the reason why they
can’t improve their business even though they undergo such process.
Smith’s Market need also to maintain and stabilize revenue streams and
cash flow and track transactions at all stages. While not every transaction
payments will be made and how much a business can expect to take in as
more. There may be cases where the users themselves have no visual,
auditory or tactile deficits however; the environment in which they use the
interface limits their normal perceptual abilities. In this study, from what our
and not easy to understand into simplest way in just a few levels of the
flows and how it works between stages of levels from what their changes.
segregating some duties to the market and improve the activity of the
entity. Point-of-Sale System can help you see whether the steps of a
the boundaries of a process. This sum up all the benefits of the POS
credibility of accurate financial reporting for both internal and external parties.
We see that it is the best way to detect fraud easily since it requires a
collusion of two or more person and it ensures that there is oversight and
review to catch errors that leads the asset to be safe from misappropriation.
The current version of POS mostly fits the needs of the Smith’s Market. Their
staff must show high satisfaction with the product and does consider the
hardware and software. The previous POS, slightly out-dated version has
proven to have certain bugs and glitches. This may not be a current burning
issue but can be potential cause of more severe business problems in the
future. So our newly POS system can support new payment system. Your
customers may be primarily using one or two payment methods now, but give
how quickly payment options can change, those customers may be asking for
new options soon. It’s best to have a POS system in place that has payment
flexibility built-in rather than having to swap out a new system. Point of Sale
systems can help you to better understand your customers, your staff and
your business, letting you to drive towards better profits and smarter ways of
working. This also involves separating three main functions which are having
these is to guarantee the company is not a victim of theft of its assets and
segregation of duties the entity can assess the credibility of their employees.