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▪
Figure 4.1
Overview Activity
Diagram for Angelo’s
Diner
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staff if there is a sales ticket supporting the removal. This is probably
uncommon in diners as the cost of the additional employee probably exceeds
the amount of benefit from the control.
Separation between server and cashier. The server adds prices to the sales
ticket (recording function), and the cashier takes custody of the cash. The
cashier also records the sale in the cash register, but the risk of the cashier
removing cash and not ringing up the sale is reduced because the completed
sales tickets will indicate the expected cash from sales.
Customer
Server
Kitchen
Staff
Cashier
Manager
Register
Order
Food
Take
Order
Sales Ticket
Prepare
Food
S: Sales ticket
(in progress)
Serve
Food
P: Price
lookup
Sales Ticket
Pay
Cash
Sales Ticket
Total
S: Sales ticket
(completed)
Total
S: Sales ticket
(completed)
Sales Ticket
Ring Up
Sale
D
I
PA
Total
S: Sales ticket
(paid)
Close
Register
Reconcile
Cash
Sales Summary
Total
SS: Sales
summary
S: Sale
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2. Use of Information about Prior Events to
Control Activities
Information about prior events can come from documents or computer records.
First, we consider information from documents.
Information from documents. Figure 4.2 shows an example of this control for
Angelo’s Diner. The sales ticket prepared during the “Take order” event is used to
Figure 4.2
Detailed Activity
Diagram for Prepare
Food and Serve Food
Events
Server
Kitchen
Staff
Sales Ticket
Gives
Sales
Ticket
S: Sales
ticket
(in progress)
Prepares
Food
Places
Food on
Shelf
Picks Up
Food
Serves
Food
Enters
Prices
Sales Ticket
Total
S: Sales
ticket
(completed)
Gives Sales
Ticket to
Customer
A document from
one event is used
to initiate a later
event.
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Figure 4.3
Detailed Activity
Diagram for the
Picking and Shipping
Events
Warehouse Employee
Shipping Clerk
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151
Computer
Picking Ticket
P: Picking
ticket
Packing Slip
Identifies Goods
Total
Picks Goods
PS: Packing
slip
Picking Ticket
Packs Goods
Updates Picking
Ticket
P: Picking
ticket
(updated)
Sends Package
Reconciles
Documents
Updates
Packing Slip
Packing Slip
Total
PS: Packing
slip
(updated)
Prepares B.O.L.
Bill of Lading
B: Bill of
lading
Attaches B.O.L.
S: Shipment
Gives Package
to Carrier
S: Shipment
detail
Enters Shipment
Records Shipment
Updates Shipment
Sends Packing
Slip
I: Inventory
(shipped)
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Figure 4.4
Detailed Activity
Diagram for Ring Up
Sale Event
Data in a computer
file are used to control
an event.
Customer
Cashier
Register
Gives
Cash/Sales
Enters Item
Code and
Quantity
P: Price
lookup
Displays
Price
Displays
Total
Stores Sales
Data
Puts Cash
In Drawer
S: Sale
Gives
Change
3. Required Sequence of Events
In many cases, organizations have policies that require a process to follow a particular sequence. For example, a doctor may require collection of insurance information before examining a patient. This reduces the risk of not getting reimbursed
for the service. Similarly, a hotel may require a credit card before booking a reservation, even though the card will not be charged until the customer has finished
his stay. There is an obvious overlap between this control and the controls described
earlier, (segregation of duties and use of information about prior events). However,
there are differences. A company can require a sequence of events without having
prior recorded information to rely on, and duties can be segregated without a required sequence. For example, assume a doughnut store has segregated duties so
that one person collects the cash and another serves the coffee and doughnuts. The
customer has the option of paying before or after service. Thus, there is no constraint on the sequence of these two events.
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Figure 4.5
Detailed Activity
Diagram for the Send
Order Event
Customer
Sends
Order
Order
Entry
Clerk
Enters
Order
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153
Computer
C: Customer
Checks
Customer
Sets Up
New
Customer
Checks
Inventory
C: Customer
I: Inventory
Records
Order
O: Order
Updates
Inventory
I: Inventory
Prints
Order
Sends
Picking
Ticket
Picking Ticket
Picking Ticket
Sends
Packing
Slip
P: Picking
ticket
P: Picking
ticket
4. Follow-Up on Events
An organization should have an automated or manual way to review transactions that
haven’t been concluded. Here are some examples of events that may need follow-up:
▪
▪
▪
▪
Customer orders that haven’t been filled
Sales invoices that are past due
Requisitions awaiting approval
Services provided but not yet completed (e.g., printing jobs, repair jobs, and
audits)
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Figure 4.6
Detailed Activity
Diagram for Close
Register and
Reconcile Cash
Events
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Manager
Cashier
Sequence of
prenumbered
documents is
checked.
Closes
Register
Sales Summary
Prints
Register
Totals
Gives Totals/
Tickets to
Manager
Sales Ticket
Total
SS: Sales
summary
S: Sales ticket
(in progress)
Checks
Prenumbered
Tickets
Calculates
Total of Sales
Tickets
Records and/or
assets are
reconciled.
Counts
Cash
Checks Cash
and Total
a reconciliation activity for Angelo’s Diner. The total cash is reconciled against the
register totals to ensure that cash is accounted for and is not lost or stolen. Reconciliation differs from the use of documents to control events in two key ways:
▪
▪
Reconciliation is broader than a simple check or comparison of documents
representing individual events. It usually involves data about multiple
events.
Reconciliation occurs after the events have been executed and recorded. As
mentioned earlier, documents were used to initiate events.
To consider reconciliation activities further, read and perform the requirements
in box 4.m.
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Figure 4.7
File Maintenance for
a Budget in Great
Plains Dynamics
Software
Complete the requirements in box 4.o concerning performance reviews.
Focus on Problem Solving 4.o
Performance Reviews (P3)
Required: Review the narrative for the registration process at Iceland Community College in box
4.n, and answer the following questions:
1. Give an example of a performance review for Iceland Community College.
2. How can reference and summary data in master files be used in this review process?
(continued)