Oxford supplies is a division of a large UK-based manufacturing company. Oxford makes a variety of collegiate branded products sold on campuses worldwide. Most employees are paid on an hourly basis. Employees receive yearly reviews to evaluate performance and to determine an appropriate pay increase. Oxford's payroll is processed by the corporate payroll department from input documents prepared by Oxford. The following HR and payroll procedures are related to the hourly payroll employees at Oxford.

Department supervisors initiate requests for additional employees by filing out a three-part employee requisition form. After a requisition is completed, the department supervisor signs it, files a copy by date, and gives the remaining two copies to the production supervisor. The production supervisor reviews and sings the copies and gives them to the HR manager. The HR manager reviews the request with the division controller. They both sign the requisition. The pay rate for the job also is determined at that time and included on the requisition. If the requisition is approved, the HR manager and the employee fill out the two-part wage and deduction form. The HR manager files a copy of the wage and deduction form and the personnel requisition by employee name. The remaining copies of each form are given to the division accountant.

The HR manager selects and reviews the records from the personal file for employees who are due for their annual review. The HR manager puts some basic employee information on a three-part review form and gives it to the appropriate supervisor for evaluation. The supervisor completes and signs the form, files a copy, and gives the remaining copies to the production supervisor, who reviews and signs the evaluation. The production supervisor returns it to the HR manager. The HR manager reviews it with the controller. They assign a new rate and sign the review form, which is given to the division accountant.

The division accountant uses the new employee information and the employee review form to prepare payroll action notices. The accountant signs the payroll action notices and files them with the other related forms by date. Each week, a clerk in the corporate payroll department retrieves the payroll forms and the division account, checks the signature on the payroll action notices, and processes the payroll. The forms, checks, and reports are sent back to the division accountant. The division accounting refiles the forms and gives the checks to the production supervisor, who in turn distributes them to the employees.

1. Draw a systems flowchart

2. Prepare a control matrix including explanations of how each recommended existing control plan helps to accomplish - or would accomplish in the case of missing plans - each related control goal.

3. Annotate the flowchart prepared in part (a) to indicated the points where the control plans are being applied (codes p-1,....,p-n) or the points where they could be applied but are not (codes m-1,....,m-n).