Assignment -
You have been recently employed as an accountant for the Platinum Manufacturing Group. The CEO, Ms James, has tasked you with reviewing their system for the purchase, receipt, storage and issuance of raw materials as part of their expenditure process. To facilitate this, she has provided you with key information relating to Platinum's raw materials purchasing processes (available in Interact).
Using the information provided to you, prepare a business report to the CEO including the following:
1. A summarised overview of the expenditure process relating to the purchase, receipt, storage and issuance of raw materials. [This should be no longer than one (1) paragraph and need to focus on the key relevant facts. The CEO is already aware of this information, but this overview helps bring your report together for other readers]
2. Use a system tool to develop a level 0 data flow diagram to document the raw materials purchasing process.
3. Identification of:
- internal control weaknesses relating to Platinum's inventory management and expenditure process;
- the impact these weaknesses could have on the organisation;
- specific internal controls which could be implemented by Platinum in the coming weeks to mitigate the weakness posed by the internal control weaknesses you have identified. The CEO does not want theoretical controls suggested. They want practical controls that they can implement; and
- how the control procedures you recommended in part c. above could be implemented using the latest developments in IT such as automation and electronic forms.
This assessment task will assess the following learning outcome/s:
- be able to evaluate accounting information system architecture and generate models of business events.
- be able to identify organisational risk and generate systems that control that risk.