EIS-SM BOOSTER

अंतिम-प्रहार

99539-22272
99997-10677
eissmpendrive.in
 EIS-SM BOOSTER
About the Author
अंतिम-प्रहार

About Prof. Om Trivedi

IIM-C Alumnus, An Entrepreneur, Guest Faculty of LVC and
External Subject Expert at the BOS of #ICAI, Visiting Faculty
Member of #NIRC and #WIRC of ICAI, Author, Publisher,
Educationist, Management Consultant, and Corporate Speaker.

Synopsis
▪ Over 11 years of teaching experience in various CA, CS, CMA and MBA courses.
▪ Guided more than 45,000 CA, CS, and CMA students through Face to Face Classes and more
than 10,000 students through LIVE Virtual & Online Classes.
▪ My students scored AIR 20, 23, 36 and 37 with 100s of exemptions.
▪ Taken batches at NIRC and WIRC of ICAI, LVC of the BOS of ICAI, ETEN CA, Unacademy, IGP Institute,
Prime Academy, Rajesh Makkar Classes & Om Trivedi Classes Delhi.
▪ His student scored “Highest - 87 Marks” in this subject and more than 890 students scored
exemptions and more than 1200 students scored 50+ marks.
▪ Done researches and projects in areas like competition studies, value creation, and competitive advantages,
MIS, and Process Improvement Techniques.

▪ Author of books on Enterprise Information Systems, Strategic Management, Information Technology,

Strategic Cost Management & Performance Evaluation, Risk Management, Mercantile Law, Generic Skills
& Ethics, and Communication. Case Study Developer and Content writer on Management subjects for
different Distance Learning Programmer (DLPs) of eminent universities of India.

▪ Over 17 years of industry experience in Publishing, Content Development and Editing, Instructional Design,
Instructor’s Resource Development, Acquisitions of Businesses, Authors and Imprints, Sales and Marketing,
Publishing solution, and operations. Partner with LexisNexis India (A Reed Elsevier Company).

▪ Worked with Thomson Learning as Regional Head (East India, Nepal, Bangladesh, and Bhutan), with Tata
McGraw-Hills as Acquisition Editor (North, East, and West India), with Macmillan as Commissioning
Editor and with Firewall Media as Business Development Manager.

▪ Worked as a Consultant business head- HEP of Trinity Press (Formerly Macmillan India’s Higher Education
Programme) in 2013-14 and played an instrumental role in the acquisition of Macmillan India’s Higher
Education Programme by LPPL under the brand name Trinity Press.

▪ Worked as a consultant and business advisor on book publishing, content development, instructional design,
case study development, instructor’s resources, and copyright matters to several companies like Macmillan,
LexisNexis India, Vikas Publishing, Excel Books, Firewall Media, Biztantra and Taxmann.

99539-22272
99997-10677
eissmpendrive.in
 Preface EIS-SM BOOSTER
अंतिम-प्रहार
Welcome to this new edition of ‘EIS-SM Booster: अंतिम-प्रहार!

As an author, I am sensitive to your learning as well as examination needs. I believe that a quick and
super revision coupled with citation of the right content with right answers to questions and their
presentation in the examination is an effective tool that determines the success of a student.
For this very reason, I have taken your point of view into consideration. In writing each chapter, I have
taken every care to make the content informative as well as easy and interesting to read, write and
present in examination.
The aim of ‘EIS-SM Booster: अंतिम-प्रहार is to help CA Intermediate (New Course) students by quickly
revising, clearly explaining, analyzing, and evaluating important EIS-SM concepts.
My approach in writing this book was essentially twofold: to write an accessible Chart-Book that students
feel comfortable with but without compromising on the academic rigour.
The examples and visuals herein, have been taken from contemporary world, ICAI literatures and leading
brands around us. These help to bridge the gap between theory to practice; aiming not only at a
comprehensive learning experience but also offering an interesting reading.
To supplement this, I have tried to adopt a user-friendly writing style that gives clear and concise
explanations to help students engage readily with the content and grasp complex strategic concepts easily.

The book has been divided into 5 Parts.

Part 1: ABC Analysis of EIS-SM
Part 2: A Bird’s Eye View of Each Chapter
Part 3: EIS Booster
Part 4: SM Booster

I would be happy to get your feedback, comments and queries. You can get in touch with me at
omtrivedi@ymail.com or call me at 9958300572 (between 8 pm – 10 pm).

Good luck for a challenging and successful learning experience!

Prof. Om Trivedi

Scan and Learn on Scan and Learn on

EIS-SM App. with YouTube with
Prof. Om Trivedi Om Sir

99539-22272
99997-10677
eissmpendrive.in
 EIS-SM BOOSTER
अंतिम-प्रहार

99539-22272
99997-10677
eissmpendrive.in
 EIS-SM BOOSTER
अंतिम-प्रहार

99539-22272
99997-10677
eissmpendrive.in
 ABC ANALYSIS EIS-SM BOOSTER
अंतिम-प्रहार

Enterprise Information Systems

A Category Topics B Category Topics C Category Topics
Chapter
(70% – 42 Marks) (20% – 12 Marks) (10% – 6 Marks)
✓ BPA and BPA ✓ Applicable ✓ DFD
Implementation regulatory and ✓ Fundamentals of BP
✓ Data Related Risks compliance and BPA
✓ Flowcharts requirements
Chapter 1: ✓ Risk Management including computer
and Related Terms related offences,
AUTOMATED ✓ ERM and IC privacy, cyber-
BUSINESS ✓ Risks and controls crime, Sensitive
PROCESSES for specific BPs Personal Data
Information of
Information
Technology Act,
2000
✓ Application Software ✓ Reporting Systems ✓ Applicable
Chapter 2: ✓ ERP Implementation and MIS, Data regulatory and
related risks and Analytics and compliance
FINANCIAL AND controls Business requirements
ACCOUNTING ✓ Business process Intelligence
SYSTEMS modules
✓ XBRL
✓ Logical Access ✓ OS and DBMS ✓ Audit Trails
Chapter 3: Controls ✓ Org. Structure
INFORMATION ✓ Managerial controls ✓ SOD
SYSTEMS AND ITS ✓ Application controls
COMPONENTS ✓ Concurrent Auditing
Tools
✓ Multi-tier ✓ Components and ✓ Advantages and
Architecture Architecture of E- Disadvantages of E-
Chapter 4: ✓ Risks and Controls Commerce Commerce
in E-Commerce ✓ Web 4.0, 5.0, AI and ✓ E-Commerce
E-COMMERCE AND Environment IOT Business Models
EMERGING ✓ Cloud service
TECHNOLOGIES models
✓ Virtualization, BYOD
and Grid Computing
✓ Components and ✓ Applicable ✓ Information Security
Architecture of CBS regulatory and in CBS
✓ CBS related risks compliance
Chapter 5: and controls (IT requirements
CORE BANKING Risks)
✓ Banking Business
SYSTEMS
process flow and its
related risks and
controls
99539-22272
99997-10677
eissmpendrive.in
 ABC ANALYSIS EIS-SM BOOSTER
अंतिम-प्रहार

Strategic Management
A Category Topics B Category Topics C Category Topics
Chapters
(70% – 42 Marks) (20% – 12 Marks) (10% – 6 Marks)
✓ Strategic management ✓ Disadvantages of SM ✓ Business Policy
Chapter 1: Introduction
Advantages ✓ Strategic Levels in ✓ SM in Govt. and
to Strategic
Management Organizations NPO

✓ Industry and ✓ Strategic Analysis ✓ Globalization

Chapter 2: Dynamics of Competitive Analysis ✓ TOWS Matrix
Competitive Strategy ✓ CC
✓ Portfolio Analysis
✓ Strategic Uncertainty ✓ Strategic Planning NA
✓ SM Model ✓ Strategic Intent -
Chapter 3: Strategic Vision, Mission, Goals
Management Process and Objectives,
Business Model and
Definition
✓ Stability ✓ Business NA
✓ Expansion Combinations –
Chapter 4: Corporate Mergers and
✓ Strategic Alliances
Level Strategies Acquisitions,
Retrenchment and
Retreat
✓ Cost Leadership NA
Chapter 5: Business Strategy
Level Strategies ✓ Porter’s 5 Forces
Model
NA ✓ Marketing Strategy ✓ Operations
✓ Financial Strategy Strategy, Human
Chapter 6: Functional Resource
Level Strategies Strategy,
Research and
Development.
✓ Organisation NA
Chapter 7: Organisation
Structure and
and Strategic
Strategic Leadership
Leadership
✓ Strategic Change, ✓ Strategy Formulation NA
Chapter 8: Strategy ✓ Strategic Control and Implementation
Implementation and Relationship
Control ✓ Benchmarking
✓ BPR
✓ Strategy Audit

99539-22272
99997-10677
eissmpendrive.in
 TABLE OF CONTENTS EIS-SM BOOSTER
Enterprise Information Systems अंतिम-प्रहार

CH-1 Automated Business Processes

CH-2 Financial and Accounting Systems

CH-3 Information System Components

CH-4 E-Commerce, M-Commerce and Computing Technologies

CH-5 Core Banking Systems

RC Regulatory Compliances

Chapter-wise Bird’s Eye View

14
12 12
12 11
10 10
10

6 5
4

0
Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6
99539-22272
99997-10677
eissmpendrive.in
 CHAPTER 1 Unit 1 EIS-SM BOOSTER
Business Process Automation अंतिम-प्रहार
Business Business and Enterprise Business Vs. Enterprise

A business is an economic The terms Business and To understand the difference

activity of providing valuable enterprise are commonly used between business and
goods and services to satisfy interchangeably. However, enterprise, we will have a face-
the needs of the society. these terms have different off between a businessman
meanings. and an entrepreneur.

Enterprise System

99539-22272
99997-10677
eissmpendrive.in
 EIS-SM BOOSTER
अंतिम-प्रहार
Enterprise Information System Purpose of EIS
EIS refers to a system that -
i. A single technology platform to integrate and
• Collects,
coordinate their business processes.
• Stores,
ii. Used in conjunction with CRM and SCM.
• Analyses
iii. Creates Value.
• Processes data and
iv. Increases business productivity and reduce
• Distributes
cycle-time.
Information within the enterprise for decision-making,
v. Promotes higher operational efficiency and cost
co-ordination and control. It can be manual as well
savings.
as computer-based information system (CBIS).

Business Process
Business process is a set of steps of the
co-ordinated and standardized
activities that you and the personnel
providing services perform to complete
the transaction.

Hammer and Champy

Business process is the radical redesign
of the business as a collection of activities
that take one or more kinds of input and
create an output that is of value to the
customer.

99539-22272
99997-10677
eissmpendrive.in
 EIS-SM BOOSTER
अंतिम-प्रहार
Categories of Business Processes

Operational Process Supportive Process Management Process

Operational or Primary Supporting Processes back Management processes
Processes deal with the core core processes and functions measure, monitor and
business and value chain. within an organization. control activities related to
Examples: Examples: business procedures and
• O2C • Accounting Cycle systems.
• P2P • HRM Cycle Examples:
• Budgeting Process
• Strategic Planning

BPA A business process automation is a set of activities or strategies to automate business

processes so as to bring benefit to an enterprise in terms of cost, time and effort.

99539-22272
99997-10677
eissmpendrive.in
 EIS-SM BOOSTER
अंतिम-प्रहार
BPA – Business Process Automation

Benefits of BPA Which BPs should be automated?

1. Quality 1. Processes involving need for Compliance
2. Consistency and audit trail.
3. Governance and Reliability 2. Processes involving high-volume of tasks
4. Improved Operational Efficiency or Repetitive tasks.
5. Reduced Turnaround Time 3. Processes requiring Multiple people to
execute tasks.
6. Time Saving
7. Visibility 4. Processes having significant Impact on
other processes and systems.
8. Reduced Cost
5. Time-sensitive processes.
The Memory’s Eye
The Memory’s Eye
QC is done to GET TV at Reduced Cost
CRM through IT
Why BPA is needed?
Steps in BPA Implementation
1. Cost Saving The Memory’s Eye
1. Define Why we plan to implement BPA?
2. Creates Value
4Cs 2. Understand the Rules/regulation
3. Competitiveness
Compliance.
4. Customer service
3. Document the process, we wish to
Objectives of BPA automate.
1. Confidentiality 4. Define the objectives/goals to be achieved
2. Integrity by implementing BPA.
The Memory’s Eye
3. Availability 5. Engage a business process consultant.
CIAT
4. Timeliness 6. Calculate the ROI for project.
Challenges involved in BPA 7. Developing the BPA

1. Automating Redundant Processes 8. Testing of the BPA

2. Implementation Cost
3. Defining Complex Processes. The Memory’s Eye
4. Staff Resistance.
The Memory’s Eye Plan Compliance DOCs to
AIDS Calculate ROI and DT.

Om Trivedi’s Strategy for U

✓ In depth understanding of the concepts of Categories of Business Processes, BPA
Implementation Steps, Challenges involved in BPA and Which BPs should be automated
with corporate examples is compulsory, as the question setter has all the liberty to ask
practical and scenario based questions in this area.
✓ You must read and practice all the study-material and “Bhishma Pratigya Question
Bank” questions to cover all the aspects of such questions and their answers’
presentation.

99539-22272
99997-10677
eissmpendrive.in
 CHAPTER 1 Unit 2 EIS-SM BOOSTER
Flowcharts and Data Flow Diagram अंतिम-प्रहार

Nov-2016,2018
DFD
Data flow diagram (DFD) is a graphic representation of the flow of data through an information system.
Types of DFDs: 1. Logical DFD 2. Physical DFD

Logical DFD Context Diagram

A logical DFD focuses on the business
It depicts a data processing
and how the business operates.
system and includes external
entities that are the sources
Physical DFD and destinations of system’s
inputs and outputs.
A physical DFD shows how the system
will be implemented.

Flowcharts
• Flowchart is a graphic representation of an algorithm.
• Flowcharts play a vital role in the programming of a problem and are quite helpful in understanding the logic of
complicated and lengthy problems.

BPMN
• Business Process Modelling Notation is a flow-chart based notation for defining business processes. It
is an extension of the traditional flowcharting mechanism.
• In BPMN, who performs each step and what is performed in each step is properly clarified and Which
department completes which one of the activities is also clarified.

Advantages of Flowcharts
i. Communication v. Efficient Coding Nov-2019
ii. Effective Analysis vi. Quicker grasp of
iii. Documentation relationships The Memory’s Eye
iv. Efficient Program vii. Establishing Controls Effective CAD and Efficient
Maintenance viii. Identifying Responsibilities PC for Quicker Control over ID
ix. Debugging

Disadvantages of Flowcharts
i. Link between conditions and actions
ii. Complex Logic
iii. Alterations and Modifications The Memory’s Eye
iv. Reproduction Link CARS
v. Standardization

99539-22272
99997-10677
eissmpendrive.in
 EIS-SM BOOSTER
अंतिम-प्रहार

Question 1
An E-commerce site has the following cash back offers.
i. If the purchase mode is via website, an initial discount of 10% is given on the bill amount.
ii. If the purchase mode is via phone app. An initial discount of 20% is given on the bill amount.
iii. If done via any other purchase mode, the customer is not eligible for any discount.
Every purchase eligible to discount is given 10 reward points.
i. If the reward points are between 100 and 200 points, the customer is eligible for a further 30% discount
on the bill amount after initial discount.
ii. If the reward points exceed 200 points, the customer is eligible for a further 40% discount on the bill
amount after initial discount.
Taking purchase mode, bill amount and number of purchases as input draw a flowchart to calculate and display the
total reward points and total bill amount payable by the customer after all the discount calculation

Question 2
A bank has 500 employees. The salary paid to each employee is sum of his Basic Pay (BP), Dearness Allowance
(DA) and House Rent Allowance (HRA).
• For computing HRA, bank has classified his employees into three classes A, B and C.
• The HRA for each class is computed at the rate of 30%, 20% and 10% of the BP Pay, respectively.
• The DA is computed at a flat rate of 60% of the Basic Pay.
Draw a flow chart to determine percentage of employee falling in the each of following salary slabs:
i. Above Rs. 30,000
ii. Rs. 15,001 to Rs. 30,000
iii. Rs. 8,001 to Rs. 15,000
iv. Less than or equal to Rs. 8,000

Om Trivedi’s Strategy for U

✓ In depth understanding of the concepts of Flowcharts and it’s techniques, are needed as
the ICAI is asking 6-8 marks Practical questions from Flowcharts in alternative attempt.

✓ You can practice around 35 FLOWCHARTS from “Bhishma Pratigya Question Bank” to
cover all the aspects of such questions and their answers’ presentation.

Scan and Connect Scan and Connect

on Instagram with on Telegram with
Prof. Om Trivedi Prof. Om Trivedi

99539-22272
99997-10677
eissmpendrive.in
 CHAPTER 1 Unit 3 EIS-SM BOOSTER
Enterprise Risk Management अंतिम-प्रहार

RISK
• Effect of uncertainty on objectives.
• Uncertainty may be positive, negative or a deviation from the expected.

Strategic Risk Reputational or Credit Risk

Prevents an organization from Exposes the organization to negative
meeting its strategic goals and publicity.
objectives. Example: Maggi, Dairy Milk.
Example: Kodak, Xerox.
Hazard Risk
Financial Risk
Risks that are insurable.
Results in a negative financial impact to the organization Example: Natural disasters; various
in terms of waste or loss of assets. insurable liabilities; impairment of physical
Example: Over-reliance on a large distributor or supplier. assets, Terrorism; etc.

Regulatory or Compliance Risk Residual Risk

Exposes the organization to fines and
penalties from a regulatory agency
due to non-compliance with laws and
regulations.
Example: Maggi, Mother Dairy.
Any risk remaining even after the
counter measures are analyzed and
implemented is called Residual Risk.
Even when safeguards are applied, there is
probably going to be some residual risk.

Operational Risk

Prevents the organization from operating in the most effective and efficient manner or be
disruptive to other operations.
Example: Vodafone, Jio, Airtel.

Technology Risk
• Frequent changes or obsolescence of technology.
• Multiplicity and complexity of systems.
• Different types of controls for different types of technologies.
• Proper alignment with business objectives and legal/regulatory Requirements.
• Dependence on vendors due to outsourcing of IT services.
• Vendor related concentration risk.
• Segregation of Duties (SoD).
• External threats leading to cyber frauds/ crime.
• Higher impact due to intentional or unintentional acts of internal employees.
• New social engineering techniques employed to acquire confidential
credentials.
• Need for information security.
• Downtime due to technology failure.

99539-22272
99997-10677
eissmpendrive.in
 EIS-SM BOOSTER
अंतिम-प्रहार

Risk Management & Related Terms

Vulnerability Attack
Inherent weakness in the system safeguards that • An attempt to gain unauthorized access to the system’s
exposes the system to threats. services or to compromise the system’s dependability.
Example: • Set of actions designed to compromise CIAT
• Poor access control method • Bug in Programs (Confidentiality, Integrity, Availability & Timeliness)
• Leaving the front door • Inexperienced User
unlocked • Bad Protocols Likelihood
• Short passwords-easy to guess • Timing Window The estimation of the probability that the threat will
Threat succeed in achieving an undesirable event.

Any entity, circumstance, or event with the potential to Counter Measures

harm the software system or component through its An action, device, procedure, technique or other
unauthorized access, destruction, modification, and/or measure that reduces the vulnerability of a component or
denial of service. system is referred as Counter Measure.
Types: • Internal • Structured
• External • Unstructured Risk Management Strategies
Exposure • Transfer/Share the risk
The extent of loss the enterprise has to face when a risk • Tolerate/Accept the risk Nov-2020
materializes. • Treat/Mitigate the risk
Example: • Loss of reputation, • Terminate/Eliminate the risk
• violation of privacy • Turn back
• Loss of resources

Enterprise Risk Management

• ERM is an on-going process
• to setting the best course of action to manage uncertainty by
✓ identifying, ✓ responding to,
✓ analyzing, ✓ monitoring and
✓ assessing, ✓ communicating risk issues/events
that may have an impact on an organization successfully achieving their business objectives.

99539-22272
99997-10677
eissmpendrive.in
 EIS-SM BOOSTER
अंतिम-प्रहार

Components of ERM

The Memory’s Eye

Nov-2020 ROI related CRIME

Establishes the entity’s risk culture Internal Environment

Sets the Enterprise Risk Objectives Objectives Setting

Identifies events that effect entity’s objectives Event Identification

Assesses risks based on likelihood and impact Risk Assessment

Evaluates possible responses to risks Risk Response

Establishes policies, procedures and controls Control Activities

Enables information exchange Information and Communication

Evaluates effectiveness of the ERM Program Monitoring

ISO-31000 Sarbanes Oxley Act Sarbanes Oxley Act

ERM system is based on the Regulation passed by the US COSO is the combination of tasks
principle of the PDCA cycle (Plan- Congress in 2002 as a reaction to and components of an internal
Do- Check-Act) different financial scandals. control system.

Benefits of ERM
1. Link Risk and Strategy
2. Realize capital Nov-2018,2020
3. Link Risk to Growth and Return
4. Identify and manage cross enterprise-risks
The Memory’s Eye
5. Seize Opportunity
6. Minimize operational surprises and losses Link Risk to Strategy, Growth and
7. Provide integrated responses to risks Returns to Seize PRIME opportunity
8. Enhance risk response decisions

Controls
• Policies, procedures, practices and organization structure
• Designed to provide reasonable assurance that business objectives are achieved and
• Undesired events are prevented or detected and corrected.

Control Based on Implementation

Control

Manual Control Automated Control Semi-Automated Control

99539-22272
99997-10677
eissmpendrive.in
 EIS-SM BOOSTER
अंतिम-प्रहार

Controls Based on the Objective of Controls or Scenario

Controls Based on the Objective of Controls or Scenario

Preventive Detective Corrective Compensatory or Perfective

IT Control (Ref. to Chapter 3)

General Control Application Control

Information Technology General Controls (ITGC)

• Information Security Policy
• Administration, Access and Authentication
• Separation of key IT functions
• Management of Systems Acquisition and
Implementation
• Change Management
• Backup, Recovery and Business Continuity
• User Training and qualification of operations personal
• Proper Development and Implementation of
Application Software
• Confidentiality, Integrity and Availability of Software
and data files
• Incident response and management
• Monitoring of Applications and supporting Servers
• Value Add areas of Service Level Agreements (SLA)

Internal Control (IC)

• Systematic Reviews • Checks and Balances • Methods and Procedures
(Assessment and Feedback) (Corrective Measures) (Tools)

Installed and adapted by an organization to:

• Prevent and detect errors, fraud, theft and misappropriation
• Run its business in an orderly, efficient and effective manner.
• Ensure accuracy and completeness of its accounting data and The Memory’s Eye
records and Regulatory Compliance IC means SCM Installed and
• Supply Timely and reliable financial and management information adapted by an organization to
• Safeguarding of assets. For Integrity PRESS for Integrity

Forms of Internal Control: Internal Control(As per SA-315)

• Segregation of Duties (SOD) The process:
• Management • Designed, implemented and maintained
• Internal Auditors by those charged with governance, management and other
• Authorize Access personnel to provide reasonable assurance about the
• Safeguarding the Assets achievement of an entity’s objectives with regard to:
• Reliability of financial reporting;
The Memory’s Eye • Effectiveness and efficiency of operations,
SOD Managed by an IAS • Safeguarding of assets, and
• Compliance with applicable laws and regulations.

99539-22272
99997-10677
eissmpendrive.in
 EIS-SM BOOSTER
अंतिम-प्रहार

Components of an Effective Internal Control As per SA-315

Components of an Effective Internal Control

Control Risk Information and Control Monitoring

Environment Assessment Communication Activities Control

Risk Assessment Control Activities

✓ To obtain an understanding of the entity and its
environment, including the entity’s internal control. Segregation of Duties (SOD)
✓ To identify and assess the risks of material
General Controls
misstatement.
✓ RAP Includes: Application Controls
• Inquiries of management
• Analytical procedures
• Observation and inspection
Information and Communication

Communication

Internal External

How information is disseminated It is of 2 folds

throughout the organisation

Inbound Communication Outbound Communication

of relevant external provides relevant information to external in

information response to requirement and expectation.

Monitoring of Controls

Evaluation

Separated
Ongoing

Provided timely information Its frequency depends

Conducted periodically
assessment of

Inbound Communication Outbound Communication

of relevant external provides relevant information to external in

information response to requirement and expectation.

99539-22272
99997-10677
eissmpendrive.in
 EIS-SM BOOSTER
अंतिम-प्रहार

Limitations of Internal Control System

• Cost or Budget involved
• Abuse of control or Potential for Human Error The Memory’s Eye
• Manipulation by management CA manipulates CA
• Collusion
• Abuse of Authority and Responsibility

Risks and controls for Specific Business Processes

• Procure to Pay/Purchase to Payment/P2P – Risks and Controls • Human Resources – Risks and Controls
• Order to Cash (O2C) – Risks and Controls • Fixed Assets – Risks and Controls
• Inventory Cycle: Risks and Controls • GL – Risks and Controls

Procure to Pay/Purchase to Payment/P2P

Inventory Cycle: Risks and Controls
Risks and Controls
Stages:
Stages:
• Ordering • Finished Goods
• User Department • Vendor
• Production • Delivery
• Procurement Department • Stores
• A/c Payable Transactions:
• Raw Material Received • Quality Check
Transactions:
• Vendor Invoice from Procurement • Approved Customer
• Purchase Requisition
• Purchase Returns Department (PO) Orders
(PR)
• Credit Notes • Inventory Price and • Shipments to
• Quotation
• Material Issue Note Quantity Customers
• Purchase Order (PO)
• A/c Payable • Defective Raw Material • Shipment Cost
• Goods Receipt Note • Disbursements • Direct and Indirect • Cost of Sales
(GRN) • System Access
Expenses • FG Returned by
Master: • Finished Goods Customers
• Supplier/Vendor Master • System Access Inventory • System Access

Order to Cash (O2C) – Risks and Controls Master:

• Inventory Management Master • System Access
Stages:
• Sales and Marketing • Manufacturing Human Resources – Risks and Controls
• Order Fulfilment • Receivables Stages:
Transactions: • Recruiting and on boarding • Career Development
• Orders • Orientation and Career • Termination or
• Shipping Planning Transition
• Credit Limit • Sales Return
• Recording of Orders • Credit Note Configuration:
• Discounts • Cash Discount • Rule based system Access
• Cancellation of Orders • Role based system Access Nov-2018
• Accounts Receivable
• Pick and Release • System Access
• Invoicing Master: (Payroll Master)
• Employees • Terminated Employees
Master:
• New Employees
• Customer Master • System Access

Fixed Assets – Risks and Controls

Stages: • Adjusting Assets Transactions Master:
• Methods of Depreciation
• Procurement • Transferring • : Acquisition of FA • • Fixed Assets Master
Maintenance of FA
• Adding an • Depreciating • Depreciation • System Access
• Disposing • FA Disposal or Transfer
Asset
99539-22272
99997-10677
eissmpendrive.in
 EIS-SM BOOSTER
अंतिम-प्रहार

GL – Risks and Controls

Stages: Configuration:
• Entering financial transactions into the system. • System Access
• Posting Approvals
• Reviewing Transactions.
• Variance Reports
• Approving Transactions. Posting of Transactions. • System Controls
• Generating Financial Reports. • Journal Entries of Exceptional Amounts

Master: Transaction:
• GL Master • GL Balances
• Standard Charts of Accounts • Interrelated B/S and Income Statement
• Account Code
• Transaction Amount
• Report of all Journal Entries Completed
• Actual to Actual, Actual to Budget and Yield Reports

99539-22272
99997-10677
eissmpendrive.in