PBL AIS510/Jan
– April 2010
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PBL AIS510/Jan
– April 2010
Part I:
Biznez Sdn Bhd maintains a typical manual processing systems. Listed below are some of the documents used by Biznez Sdn Bhd in its revenue cycle. a) Briefly explain the purpose of each of the documents listed below. i. Sales order ii. Packing list iii. Shipping notice iv. Bill of lading v. Remittance Advice
(5 marks) b) State the stewardship (originator) and the recipient of the documents listed above.
(5 marks) c) State number of copies should be produced by Biznez Sdn Bhd to ensure the reliability of information system in revenue cycle.
(5 marks)
( TOTAL: 15 MARKS)
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PBL AIS510/Jan
– April 2010
Part II : Cash Receipt System - Damansara Damai Sdn Bhd 1 .
Damansara Damai Sdn Bhd operates a private parking lot near the railroad station for the benefit of town residents. The guard on duty issues annual pre numbered parking stickers to residents who submit an application form and show evidence of residency. The sticker is affixed to the auto and allows the resident to park anywhere in the lot for 12 hours if four quarters are placed in the parking meter. Applications are maintained in the guard office at the lot. The guard checks to see that only residents are using the lot and that no resident has parked without paying the required meter fee.
Once a week the guard on duty, who has a master key for all meters, takes the coins from the meters and places them in a locked steel box. The guard delivers the box to the town storage building, where it is opened and the coins manually counted by a storage department clerk who records the total cash counted on a weekly cash report. This report is sent to the town accounting department. The storage department clerk puts the cash in a safe, and on the following day the cash is picked up by the town’s treasurer, who manually recounts the cash, prepares the bank deposit slip, and delivers the deposit to the bank. The deposit slip, authenticated by the bank teller, is sent to the accounting department, where it is filed with the weekly cash report.
Required: a. Identify and explain the basic activities in revenue cycle.
(10 marks) b. Discuss the internal control weaknesses in the system and suggest appropriate control procedures for each weakness.
(20 marks)
( TOTAL: 30 MARKS)
1 Adapted from Accounting Information System by Bodnar and Hopwood; 5 th Edition; p. 272 – Discussion questions and problems.
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PBL AIS510/Jan
– April 2010
Part I: Purchasing System – Northern Manufacturing Co.
The purchasing system of Northern Manufacturing Co. starts when a department which requires material will submit the purchase requisition forms. Each requisition forms will be approved by the department head. Two copies are forwarded to the purchasing department and one copy is filed numerically at the originating department.
Purchasing accounts for the numerical sequence of requisition forms on receipt. Prenumbered purchase orders are prepared and approved. Three copies of purchase order are distributed to the requesting, receiving and account payable departments each. Two copies are sent to the vendor and one copy is filed numerically with the requisition form attached to it. A copy of the requisition is also forwarded to accounts payable.
In the receiving department, the shipment are blind counted, inspected and recorded their blind copy of purchase orders. The blind copy are forwarded to the head of the receiving department. She compares the tally sheets with the purchase orders and prepares pre numbered receiving report. This report indicates the actual quantity received. Item returned to the vendor will be indicated on the receiving report and separate pre numbered debit notes are prepared. The department head accounts for the numerical sequence of receiving reports and debit memos. Copies of receiving report and debit notes are sent to the requesting, accounts payable, purchasing and stores departments. Each of these departments files all documents numerically.
Invoices are received in the mailroom and sent to accounts payable department. A clerk in the accounts payable then compares details in the invoice with those on the purchase order, requisition form and receiving report. The clerk then assembles all the documents together with any related debit notes (if any) into a voucher package.
She then initials the voucher package and submitted the voucher package to the cash disbursement department. The cash disbursement clerk prepares checks as soon as she received the voucher package. The voucher package is then forwarded to the controller for signature. The controller reviews each voucher package and manually signs the checks. The signed checks together with the voucher package are sent to accounts payable department. The accounts payable supervisor detached the check from the voucher package and sent to mailroom. The voucher package is then filed in the department.
Required: a. Identify all documents which are used in Northern Manufacturing Co.
Purchasing system and explain the purpose of each document.
(5 marks) b. Prepare a document flowchart of the above purchasing system.
(15 marks) c. Suggest appropriate internal control procedures for the proposed system
(20 marks)
(Total: 40 marks)
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PBL AIS510/Jan
– April 2010
Part II: Payroll system – Redhot Sdn Bhd.
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Redhot Sdn Bhd is an leading bakery company producing buns and cakes for consumption in the Nothern region. Currently, Redhot employs 100 employees in its plant in Alor Star, Kedah
Everyday each employee is required to clock in using his or her own specific time card. At the end of each week, based on the time cards, production manager prepares timesheets of the employees and sends a copy of the timesheet to payroll department. The payroll clerk enters the information from these timesheets into the employee records and then adds the employee hours to a payroll register reflecting employee’s pay rate, necessary deductions and job classification. A copy of the payroll register along with the timesheets is filed in the payroll department and a copy is sent to accounts payable department. The payroll clerk then uses the timesheets to prepare employee paychecks and sends them to the cash disbursement department. The cash disbursement clerk signs the checks and distributes them to the employee. The accounts payable department prepares a cash disbursement voucher, along with a copy of the payroll register are sent to the cash disbursement department and is posted to the general ledger. The cash disbursement department then writes a check to the total amount of the payroll for the week and deposits it in the imprest account. A copy of the check of the imprest account, along with the disbursement voucher and payroll register are sent back to the account payable department and filed.
Required: a. Prepare a document flowchart of the Redhot Sdn. Bhd. payroll system.
(15 marks) b. Discuss the internal control weaknesses in the system and provide corrective recommendation of each. (20 marks)
(Total : 35 MARKS)
2 Adapted from Accounting Information System by James A. Hall; 4 th Edition; p. 339 – Case 6: Sinclair’s Chair
Company Payroll Systems
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PBL AIS510/Jan
– April 2010
HBA Industries Sdn Bhd 3
HBA Industries Sdn Bhd is a manufacturer of consumer products located in Jejawi,
Perlis. The production process at HBA involved planning, scheduling and controlling of physical products through manufacturing process. The manufacturing process begins in the production planning and control department where Miss June, the production controller determines the material and operations requirements and combines information from various departments to assess the inventory requirements needed to produce a product. Marketing department provide the sales forecast,
Engineering Department will provide the engineering specification and storeroom will provide the raw material inventory status. June will review this information and prepare a purchase requisition document, which she sends to purchasing department. June then reviews the bill of materials and route sheets and prepares work orders, move tickets and material requisitions. The documents are prepared in three copies. One copy of the work orders, move tickets and material requisitions are sent to cost accounting department and another two copies are sent to Mani, the supervisor at the work center.
Once receives the production control documents, Mani starts the production process.
He sends a copy of the material requisitions to the inventory storeroom to request for raw materials. When there are a need for additional raw materials for job in process,
Mani will make a phone call to Sani, the storeroom clerk. Material in excess are kept in the work center for future use. When the job passes through all production stages and is complete, Mani sends the products to finished goods warehouse. He then files a copy of each work order, move ticket and material requisition. The remaining copies of the documents are send to cost accounting. One of Mani’s main duties is to review the job ticket and employee’s timecards, which are then sent to cost accounting and payroll respectively.
Sani, in the inventory storeroom, accepts material requisition from the work center employees and releases raw material to the work center. Sani files a copy of the material s requisitions ad updates the raw material inventory records. At the end of the day, he creates a journal voucher that is send to Roha in the cost accounting department.
Roha uses all documents she received from production planning and control department, work center and inventory storeroom to initiate a work –in-process (WIP) account and to update the WIP account as the job progresses, to calculate variances and update the general ledger accounts. Roha then files all documents in the department.
Required: a. Identify the basic activities of production cycle and explain the objectives of each activities. (6 marks) b. Create a document flowchart of the existing system. (20 marks)
3 Adapted from Accounting Information System by James A. Hall; 4 th Edition; 2006; p. 399; Case 3
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PBL AIS510/Jan
– April 2010 c. Discuss internal control weaknesses of the system and suggest recommendations on how to correct each weakness. (20 marks) d. Explain how the use of computer based system can help HBA to increase the efficiency in its production system.
(4 marks)
(TOTAL: 50 MARKS)
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PBL AIS510/Jan
– April 2010
CONTENT/FINDINGS
PBL 1
PBL 2
PBL 3
( /45)
( /75)
( /50)
REMARKS
/170
FRONT MATTER
Title Page
Acknowledgement
Table of Content
( /5)
( /5)
( /5)
/15
BACK MATTER
References – Books & Journals
5 Web Addresses
Appendices
( /5)
( /5)
( /5)
/15
/200
/13
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PBL AIS510/Jan
– April 2010
Presentation : 5%
(PBL Objective 3)
Group :…………………………….
Date :……………………………
GROUP WORK
Slide Effectiveness (Color/big/clear/attractive/ etc)
Flow of presentation (Intro, content , conclusion)
Audience attention
TOTAL
INDIVIDUAL WORK
PRESENTER
Voice
(loud/clear)
(10)
Gesture
(eye contact)
(10)
Delivery
(Fluency)
(10)
Case :…………………………
Appearance
(dress, shoes)
(10)
/20
/20
/20
TOTAL
(100)
TOTAL
(5%)
OVERALL REMARK
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PBL AIS510/Jan
– April 2010
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6.
Name :_____________________________
Group: _____________________________

Please give your peers your honest rating. The rating is 0 through 10 for each criterion

Please fill in your comments to ensure your team members are fairly evaluated.

This form will be accepted only if all blanks including “Comments” field are filled up.
No. Peer’s Name Comments
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PBL AIS510/Jan
– April 2010
1