Business Processes_ M4 Flashcards
What are the different business processes?
activities performed by an organization to achieve a specific goal
- Revenue
- Expenditure
- Manufacturing
- Human resources and payroll
- Finance and reporting
What type of activities that goes on in the revenue process?
1 of 5 business process
- A pick ticket is a list provided to the warehouse or inventory function detailing the items and quantities that should be picked and packaged and sent to the shipping department for an order. This is a part of the shipping step in the revenue process. It also authorizes the warehouse to send goods to the shipping department
- A packing slip is a document that details the items and their quantities and is included in the shipment for verification.
- A customer purchase order is a document sent by the buyer to the seller indicating the goods or services desired, the quantities and timing needs, and the agreed-upon price.
- A sales order is a document that lists the details of the customer order including the items or services ordered, quantity, prices, and agreed-upon timing and delivery terms
- A sales invoice is part of the revenue process.
- A bill of lading is part of the revenue process
- A receipt is part of the revenue process.
What type of activities goes on in the expediture process?
2 of 5 business process
- Purchase raw materials
- Three-way match (what was ordered, was received, what was received was invoiced).
- Voucher Packet: The supplier invoice, the receiving report, and the purchase order.
- A voucher is part of the expenditure process
What type of activities goes on in the manufacturing process?
3 of 5 business Process
- Product design and engineering.
- Manufacturing forecasting and scheduling.
- Product development.
- A bill of materials is a detailed document specifying all of the components and quantities required to manufacture a product.
- A production schedule is part of the manufacturing process.
- A production order is part of the manufacturing process.
What are the activities for human resource and payroll process?
4 of 5 business processes
- Earnings statement.
- A paycheck.
What are the activities for finance and reporting?
5 of 5 business processes
- A bank statements.
What are business process controls?
9 total controls with sub categories
- Management and policy controls
- Segregation of duties
- input edit checks
- Processing controls
- Standing data controls
- Spreadsheet controls
- Supervisory and monitoring controls
- Reconciliations
- Verification controls
What are the controls of segregation of duties?
2 of 9
The ARC from protecting you from a Flood of troubles.
- Authorization
- Record keeping
- Custody of assets
What are the controls of Input Edit Checks?
3 of 9
- A validity check creates a framework so values in data entered into a foreign key field must first be entered in a corresponding table with the primary key.
- A reasonableness test validates the logic of input values where fields are dependent or relevant to each other.
- A completeness check verifies that all required data has been input.
- A field check designates the character types that are allowed in the field (i.e., text, numeric, or alphanumeric)
- Closed-loop verification retrieves and displays information related to the input to verify accuracy.
- A size check limits the number of characters input into a field.
- A limit check establishes either upper or lower limits for input data.
What are the preventative and detective Processing Controls?
4 of 9
Preventative Controls:
- Cross-footing is the process of testing the sum of a column of row totals to the sum of a row of column totals to verify identical results.
- Input validation focused on ensuring that all appropriate items have been processed. It works on ensuring batch processing is done in a complete and accurate manner utilizing record counts and batch totals.
Detective Controls:
- Data matching works to match multiple items, such as purchase orders, receiving reports, and vendor invoices, before processes are executed.
- A sequence check is the process of having prenumbered documents and verifying that no documents or transactions are missing.
What are preventive and detective controls over Standing Data?
5 of 9
Preventative Controls:
- Access and authorization controls.
- Change control.
- Read-only rights.
- Regular backups to ensure data is not lost.
Detective Controls:
- Periodic reconciliation of changes to the data is considered a detective control because it reviews changes. This control helps to verify that any changes made to the data follow the established policies and procedures, including appropriate review and approval.
What are the preventative and detective controls of Supervisory and Monitoring Controls?
7 of 9
Preventative Supervisory and Monitor Controls:
- Organizations develop strict hiring guidelines so that only competent and capable employees are hired to perform key business functions.
- Organizational charts.
- Regular backups.
- Input validation focused on ensuring that all appropriate items have been processed.
Detective Supervisory and Monitor Controls:
- Performance reviews.
- Mandatory vacations.
- Audits.
- Comparing budgets and forecasts to actual results can assist in detecting abnormalities in business processes.
What are documentation techniques?
- Flowcharts visualize not only the logical flow of data through a process but also the physical aspects (documents) of that flow. This includes the form in which the information flows through the process and whether actions taken on the document are done manually or through the use of computers.
- Narratives are written descriptions.
- Data Flow Diagrams depict the logical flow of data but do not detail the physical aspects (documents) of the process.
- System Interface Diagrams focus on the interfacing of clients and systems and do not depict the physical flow of information.
How does business process improvements use software and tools?
- Business process management
- Business process analysis
- Business process automation
- Business process modeling tools
What makes for a good candidate for business process automation?
- Automation requires processes to be repetitive and recurring.
- Business processes that are objective (factual) rather than subjective (owns opinion)
