2.

Type of Business: Appliance Center

3. Business Process:
1. Purchasing
2. Selling

4. Transaction Cycle: Expenditure- Purchasing

Revenue – Selling

5. Expenditure Cycle Activities

1. Purchasing or Ordering of Merchandise
2. Receiving of purchased merchandise
3. Invoicing for merchandise ordered.
4. Return of merchandise due to defects
5. Payment of merchandise ordered.

Revenue Cycle Activities

1. Selling of merchandise
2. Delivery of merchandise
3. Invoicing
4. Sales return of merchandise
5. Payment from customers.

6. Source Documents:
Expenditure Cycle
Business Activity Source Document
1. Purchasing or Ordering of Merchandise 1. Purchase Order/Supplier’s Invoice
2. Receiving of purchased merchandise 2. Goods Receipt
3. Invoicing for merchandise ordered. 3. Accounts Payable Invoice
4. Return of merchandise due to defects 4. Goods Return
5. Payment of merchandise ordered. 5. Cash Disbursement Receipt

Revenue Cycle
Business Activity Source Document
1. Selling of merchandise 1. Sales Order
2. Delivery of merchandise 2. Delivery Receipt/Shipping Invoice
3. Invoicing 3. A/R Invoice
4. Sales return of merchandise 4. Sales Return
5. Payment from customers. 5. Cash Receipts
General Manager ( Owners)

- Responsible for the legal requirements of the business

- Responsible for the payment of expenses of the business

- Responsible for the monthly payroll

- Ensure the creation and implementation of a strategy designed to grow the business

- Responsible for purchasing of merchandise.

- Product management, including ordering, receiving, price changes, handling

damaged products, and returns.

- Ensure overall delivery and quality of the unit's offerings to customers

- Evaluate and decide upon key investments in equipment, infrastructure, and talent

Supervisor

- Responsible for the day-to-day operations of the business

- Responsible for checking the level of inventory every month

 - Overall care of staff and their well being

- Presentation of store and advertising displays

- To handle problems and questions to customers

- Responsible for reporting the operation of the business to the manager

Bookkeeper

- Record all transactions and post debits (costs) and credits (income).

- Produce financial statements and other reports for supervisors and managers.

Cashier

- Responsible for Handling cash

- Responsible for the issuance of the official receipt and for receiving payments

Sales Assistant (Helper)

- Responsible for assisting the customers.

- Responsible for distributing the order of the prospective buyer

- To handle problems and questions to customers

 Information Flow of Level of Name of report
Member Type of Report
Needed Information Information needed
Non-
Summari
Horizontal Vertical Detailed Mandatory Mandato
zed
ry
Financial Statements
Business Financial
reports, Daily Sales
Transactions,
General Report, Workforce
Administrative tasks,   
Manager Management Reports
and Employees
and Inventory report,
Information
Payroll report
Business Transaction,
Employees Data, Cash Count Sheet
Store
Merchandise   Report, Financial 
Manager
Information, and Reports
Inventory Level
Daily Sales Report, Cash
Business Financial
Receipts Journal,
Bookkeeper transactions and   
Disbursement Journal,
Business Information.
and Purchase Journal,
Merchandise
Cashier Information, Business   N/A 
Information
Merchandise
Sales information, Marketing
  N/A 
Assistant Information and
Business Information
IT CONTROLS
I. Information Security
User Access Controls
Physical Access Controls
Network Access Controls
Log Analysis
EXISTING PRACTICE
 Biometric Identification and Passwords.
 Locks, security guards, and CCTV.
 Antivirus Software (SMADV).
 Audit Log.

II. Confidential and Privacy

Encryptions  Authentication and File System
III. Processing Integrity and availability
Input Controls  Input of resources and Data Entry.
Processing Controls  File labels and cross-footing.
Output Controls  Reconciliation and Data Transmission
Controls.
 Payroll Flowchart

Supervisor General Manager Cash Disbursement

Time Cards Time Cards Payroll register

Personnel Action

Review Review
and and
Prepare Checks
Prepare Authorize
and Update Employee
personnel Cash
Records Record
Action Transfer

Paychecks Payroll register Payroll register

Time Cards

Personnel Action

Payroll register
Personnel Action

BANK
Review
and
Distribute

Personnel Action

Employees
 Level 0 DFD: Payroll System

Payroll Data
File

1.0 2.0
Receive and Calculate
Record Time Payroll
Card

Employees

3.0
Prepare
Payment/
Check CD Journal

4.0 5.0
Approved Record
and Sign Payment
Check