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