B1 - M4: Business Processes Flashcards
What are the components of a Three Way Match?
Purchase Order, Receiving Report, Supplier Invoice (this is a key purchasing function related to the Expenditure Process)
What business process does the “Pick Ticket” pertain to?
Revenue Process
What is a Pick Ticket?
A list provided to the warehouse or inventory function detailing items and quantities that should be “picked”, packaged, and sent to the shipping department to complete an order.
What are the 5 Key Business Processes?
MR HEF: M-anufacturing, R-evenue, H-uman Resources/Payroll, E-xpenditure, F-inance and Reporting
What are the steps of the Manufacturing Process?
- Product Design and Engineering, 2. Product Development, 3. Manuf. Forecast and Schedule, 4. Manuf. Ops, 5. Accounting/Reporting of CIP and Fixed Assets
What are the steps of the Revenue Process?
- Sales Order Receipt and Entry, 2. Delivery of Service or Goods, 3. Customer Billing, 4. Payment Collections
What are the steps of the HR/Payroll Process?
“HR: Hiring, Onboarding, Establishing reporting structure, Employee evaluations, Terminations
Payroll: Establishing Compensation Plans, Updating Compensation, Activity Reports, 3rd party Witholdings, Payroll Disbursement”
What are the steps of the Expenditure Process?
- Placing an Order for Goods/Services, 2. Goods/Services are delivered/rendered, 3. Receipt and Approval of Billing via 3-Way Match, 4. Bill Payment
What are the steps of the Finance and Reporting Process?
- Treasury Function; Managing Cashflow and Fin. Activities, 2. General Ledger Updates, 3. Financial Statements and Management Reports
What information does a Process Narrative provide?
Only written descriptions
What information does a System Interface Diagram provide?
Data focused on the interfacing of clients and systems and NOT the flow of information
What information does a Flowchart provide?
A visual representation of the logical flow of data and a Chart of the physical aspects of this flow.
What information does a Data Flow Diagram provide?
A Diagram ONLY of the logical flow of data.
What is a “Bill of Materials”?
A detailed document specifying all the components and quantities required to manufacture a product.
What is a “Voucher”?
A document validating the 3-Way Match which is central to approving payments in the Expenditure Process.
What is a “Validity Check”?
Creates a framework where data entered into a key field must first be entered into a corresponding master table to mitigate inappropriate data
What is a “Field Check”?
Designates specific character types that are allowed in a field (e.g. text, numeric, alphanumeric)
What is a “Reasonableness Test”?
Validates the logic of input values when fields ore interdependent or relevant to each other
What is a “Completeness Check”?
Verifies that all required data has been input
What is “Closed-Loop Verification”?
Retrieves and displays info related to the input to prompt the user to verify accuracy before proceeding.
From a control perspective, are Budgets and Forecasts Preventative or Detective in nature?
Detective, because budgets and forecasts are ultimately compared to actual performance AFTER it occurs to identify anomalies that need to be addressed.
