Kế toán, kiểm toán - Chapter 14: Other business processes

Chapter 14Other Business ProcessesOutlineExpected outcomesNature of other processesConversion processFinancing processHuman resource processProcess relationshipsExpected outcomesWith respect to the conversion, financing and human resource processes, you should be able to:Explain the role & purpose of each process.Explain how the generic structure of most AIS applies.Identify & process common transactions.Design & critique internal controls based on common risk exposures.Develop & interpret process-related systems documentation.Nature of other processesThe sales / collection and acquisition / payment processes share significant similarities across a wide range of organizations.The processes in this chapter can (and do) vary significantly based on:Products & services soldOrganization sizeForm of ownershipEmployee characteristics & benefitsConversion processRole and purposeTo convert factors of production into a finished productFactors of productionDirect materialDirect laborOverheadConversion processAIS structureInputsMaterials requisitionMaterials move ticketLabor time ticketProcessJob costing systemsProcess costing systemsHybrid systemsOutputsJob cost sheetProduction cost reportStorageEmployee master fileInventory master fileManufacturing transactions fileConversion processLecture break 14-1What transactions would be recorded in the manufacturing transactions file? How would its tables be structured?Conversion processInternal controlsRaw material storage conditionsBackup power supplies for manufacturingWorkers’ compensation insuranceSafety trainingProtective clothingFinancing processPurpose and natureTo acquire external financial resources the organization needs to carry out its operationsTwo principal sourcesDebt financingEquity financingLecture break 14-2What do you recall about the advantages & disadvantages of debt & equity financing from introductory financial accounting?Financing processAIS elementsInput & output documentsShares of capital stockVarious forms of notes and bonds payableChecksSEC forms10-Q10-K8-KAnd othersFinancing processAIS elementsProcessesCommon transactionsIssuance of capital stockPurchase of treasury sharesIssuance of debtDividend paymentsInterest & principal paymentsSecurities issuance processesSuch as an initial public offeringFinancing processAIS elementsStorageStockholder master fileDebtholder master fileTransaction filesInternal controlsProper authorizationsControls over cashSeparation of dutiesAdequate documentationHuman resource processPurpose & natureTo manage the “human asset” from initial recruitment to separation from the companyLecture break 14-3Think about the last job you had or the one you currently have. How were the generic activities of the human resource process exemplified in that position?Human resource processAIS componentsInput & output documentsPayroll formsPayroll registerEmployee earnings recordPayroll tax formsForms W-2 and W-4Forms 940 and 941ChecksProcessesInterview & hire employees.Pay employees.Evaluate performance.Manage separations / terminations.Human resource processAIS elementsStorageEmployee master filePayroll transaction fileEmployee evaluation fileInternal controlsDetailed documentationControls over cashTraining & developmentLecture break 14-4How would you structure an “employee evaluation” file?Process relationshipsProcesses for acquiring needed resources:FinancingHuman resourceAcquisition / paymentProcess for using those resources:ConversionProcess for selling goods & services:Sales / collectionIn spite of their differences, all business processes have one major goal: creating value for organizational stakeholders.Classroom assessmentThis chapter has discussed three business processes that can vary significantly across organizations:ConversionFinancingHuman resourceWe’ve now considered a total of five business processes. Work with a group of three to five students to suggest one additional business process beyond those five. Describe its purpose and apply the five generic AIS elements to it.