1. Using Microsoft Excel, create a flowchart documenting the acquisition/payment process for ABC Corporation. Someone looking at your finished flowchart should be able to ?read? it and end up with the details presented below. Make sure you use proper symbols, clear labels, and proper flowcharting techniques (for example, make sure to identify documents used where necessary). ?ABC Corp. replaces one-third of its computers every year, so that every employee has a new computer every three years. In January of each year, the IT division accesses the corporate database to determine which computers are eligible for replacement. David, the IT division manager consults with Mike, the CFO, to determine the budget for computer replacement. David then asks each employee whose computer is eligible to be replaced for a list of three ?must have? features and three ?wish list? features for his or her new computer. ?A committee comprised of the IT manager, the CFO, and three employees prepares a request for proposal (RFP) to send to various computer vendors. Vendors typically have about 30 days to respond to the RFP. At the end of the RFP period, the committee ranks the proposals based on a standard set of criteria. ?After discussion, they select the best proposal and contact the vendor. Nancy, the purchasing clerk, issues a purchase order; the original goes to the vendor, while Kayla, the accounting clerk receives a copy. Joe from the receiving department gets a ?blind copy? of the purchase order. ?When the computers arrive, Joe inspects them for quality; any computers that do not meet quality specifications are returned to the vendor. Joe then prepares a receiving report of all good computers received. A copy of the receiving report is sent to Kayla. ?The good computers are transferred to the IT department. IT staff install them for the employees, typically in April of each year. Kayla receives vendor invoices when all ordered computers are accepted. Kayla performs a three-way matching between the purchase order, the receiving report, and the vendor invoice. Kayla then prepares a check and mails it to the vendor. ?On a monthly basis, Kathy, the accounting supervisor generates and reviews the expense report summarizing all payments made in a particular month. Kathy verifies that the payments are supported by appropriate requisitions/RFPs, purchase orders, receiving reports, and vendor invoices. 2. Using Microsoft Word, write a narrative describing risks ABC faces and any internal controls ABC should implement to mitigate those risks in the process described above. Recall that controls can be preventive, detective, and/or corrective. Be sure to clearly identify where the controls should be implemented and the risk(s) each control is designed to mitigate.
Paper#6594 | Written in 18-Jul-2015Price : $25