BEC 1 - Module 4
What are the steps in the Payroll process?
1. Creation/implementation of compensation plan 2. Review of compensation plan 3. Activity reporting 4. 3rd party withholding 5. compensation disbursement
What are the steps in the HR process?
1. Hiring 2. Onboarding 3. Establishing a reporting structure 4. Assignment of duties 5. Employee review process 6. Employee complaint system 7. Termination process
What are the steps in the expenditure process?
1. Placing the order 2. receiving delivery of the order 3. Receipt and approval of billing, includes three-way match between purchase order, receiving report, and vendor invoice 4. bill payment
What are the steps in the revenue process?
1. Sales order and receipt 2. Delivery of goods/services 3. Customer billing 4. Payment collections
What are the steps in the Manufacturing process?
1. product design 2. product development 3. manufacturing forecasting/scheduling 4. Manufacturing operations 5. Manufacturing/Fixed Assets accounting and reporting
What are the steps in the finance and reporting process?
1. treasury function 2. updating the general ledger 3. financial/managerial report generation
What three duties should always be kept separate?
Custody of assets: possession/receipt/creation of assets record-keeping: data entry, recording transactions, preparing reconciliations, and updating accounting records Authorization: approving business activities
What is Business Process Modeling
Graphically depicting an organization's business processes
What is Business Process Automation
Identifying and automating business processes
What is Business Process Analysis
Methodology to improve effectiveness and efficiency of the business process
What are standing data controls?
Preventative or detective controls that prevent master files that contain long-term data and do not change very often from being tampered with Preventative examples: read-only rights, access/authorization controls, regular backups Detective examples: period reconciliations, review of employee access
What are the key expenditure process documents?
Purchase requisition: request for goods to be fulfilled by the purchasing department Purchase order: The order sent to the vendor Receiving report: document showing what was delivered Supplier invoice: document sent by supplier showing what is owed and when it's due Voucher: three-way match package that shows the purchase order, receiving report, and supplier invoice
What is Business Process Management
Reviews and manages an organization's approach to their business process design and implementation
What are the key revenue process documents
Sales order: details of customer order Pick ticket: list provided to the warehouse to know what to pick and how much Packing slip: a document that shows the contents of the package, used for verification Bill of lading: contract between seller/carrier/customer that accompanies the shipment, shows duties between each party Sales invoice: the document sent to the customer showing what they owe Receipt: receipt of payment Remittance Advice: notice of payment sent by customer
What are flowcharts?
best for identifying risks and potential control deficiencies visual representations of how documents and info flow through a process not only follows flow but also shows what form the info takes
What are reconciliations?
detective controls that review changes in account balances or differences in ledger accounts and value provided by third parties Examples: segregation of duties between reconciliation preparer and review/sign off by another party
What are data flow diagrams?
document the logical flow of data through a process utilize a minimal amount of documentation symbols focus on where data came from, how it is transformed, where it ends up
What is management and policy controls
establishment of defined policies and procedures that govern how processes should be performed also establish safeguards and how to address/escalate exceptions
What are spreadsheet controls?
preventative controls over spreadsheets Examples: access/authorization control, locked cells, data validation, regular backups
What are supervisory and monitoring controls?
preventative controls that allow for review/monitoring or oversight of business activities by management Examples: approval controls, org charts, hiring guidelines, review of KPIs, performance reviews, mandatory job rotation
What are input edit checks?
preventative controls that only allow complete transactions to be submitted for processing Examples: consistent forms, completeness checks, field/size checks, limit or range checks
What are processing controls?
preventative controls that stop an organization from processing incorrect or incomplete information Examples: cross-footing, sequence check, input validation
What are verification controls?
preventative controls to verify identity of user Examples: username/password, unique pin, biometrics
What are system interface diagrams
show how users and functions interact with the organization's systems show how parties logically interact with one another
What are process narratives?
written documents that tell the story of the process describe each step in the process