• FLOWCHART
• WHAT CAN GO WRONG?
• PURPOSE OF A FUNCTION/ CONTROL PROCEDURES
• MANUAL OR COMPUTERISED OBJECTIVES
• PAST QUESTIONS
REMEMBER
INTERNAL CONTROLS ARE IMPORTANT IF INFORMATION IS GOING TO BE
RELIABLE.
THE INFORMATION IS RELIABLE IF EVERYTHING RECORDED IS VALID AND
ACCURATE, AND EVERYTHING THAT SHOULD BE RECORDED IS RECORDED
(COMPLETE)
PROCESSES AND SUB PROCESSES (FUNCTIONS)
FOR INFORMATION TO BE VALID, ACCURATE AND COMPLETE
ALL THE STEPS IN THE PROCESS NEED TO BE PROPERLY CONTROLLED
IN EACH STEP THERE IS INPUT/ PROCESSING & OUTPUT
CONTROL OBJECTIVES FOR EACH OF INPUT/ PROCESSING AND OUTPUT
ExpertTutor4
, 3
Revenue and Receipts Cycle
Receiving customers’ orders
Orders to be recorded onto pre-printed and
pre-numbered internal sales orders (ISO’s)
Telephoned / faxed orders
To ensure orders only placed once
Use of Register to record orders received
Handing over to Orders clerk carefully
done
Is the customer a valid customer?
Yes No
Customer number – customer to New customer
quote → access system to confirm
Standard procedures in place
Credit authorisation by Credit
Customer to complete credit application form
Manager
Credit manager
◦ To approve
◦ Setting of credit limits and sign as
evidence
Approval of credit limits by senior staff
member
Credit limits must NOT be set by Orders Clerk
Check stock availability before processing order
If available: Place customer’s order
If not available: Create “Back Order
ExpertTutor4
, 4
Validity of Orders Accuracy of Orders Completeness of Orders
Access to Orders Matching of data Sequential numbering of
Module o Information ISO’s
Authorised terminals and generated by
users computer where
◦ Limited to terminal possible i.e.
in Ordering Dept Minimum keying in
◦ Access limited to of data
Ordering staff o Screen formatting
Use of passwords and
access rights Screen dialogues and
prompts
Authorisation of Mandatory fields
transactions Edit/programmed checks
◦ Passwords, access o Validation of
rights account number
◦ Against credit limits against masterfile
◦ Against codes or o Alphanumeric
categories checks
o Missing data
o Screen checks
Control totals
Customer masterfile amendments
Specifically → related to creation of new debtors, amendment of terms etc
Valid
◦ Pre-printed, pre-numbered MAF’s
◦ Stationery controls
Stationery register
Limited access to stationery
Cancellation of documentation
◦ Supervisor to sign source documents
◦ Restricted access to masterfile – authorised person
◦ Access controls in place to limit access
◦ Unauthorised access attempts to be logged
ExpertTutor4
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