B1 - M4: Business Processes

Question 1

What are the components of a Three Way Match?

Answer 1

Purchase Order, Receiving Report, Supplier Invoice (this is a key purchasing function related to the Expenditure Process)

Question 2

What business process does the “Pick Ticket” pertain to?

Answer 2

Revenue Process

Question 3

What is a Pick Ticket?

Answer 3

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.

Question 4

What are the 5 Key Business Processes?

Answer 4

MR HEF: M-anufacturing, R-evenue, H-uman Resources/Payroll, E-xpenditure, F-inance and Reporting

Question 5

What are the steps of the Manufacturing Process?

Answer 5

1. Product Design and Engineering, 2. Product Development, 3. Manuf. Forecast and Schedule, 4. Manuf. Ops, 5. Accounting/Reporting of CIP and Fixed Assets

Question 6

What are the steps of the Revenue Process?

Answer 6

1. Sales Order Receipt and Entry, 2. Delivery of Service or Goods, 3. Customer Billing, 4. Payment Collections

Question 7

What are the steps of the HR/Payroll Process?

Answer 7

“HR: Hiring, Onboarding, Establishing reporting structure, Employee evaluations, Terminations

Payroll: Establishing Compensation Plans, Updating Compensation, Activity Reports, 3rd party Witholdings, Payroll Disbursement”

Question 8

What are the steps of the Expenditure Process?

Answer 8

1. 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

Question 9

What are the steps of the Finance and Reporting Process?

Answer 9

1. Treasury Function; Managing Cashflow and Fin. Activities, 2. General Ledger Updates, 3. Financial Statements and Management Reports

Question 10

What information does a Process Narrative provide?

Answer 10

Only written descriptions

Question 11

What information does a System Interface Diagram provide?

Answer 11

Data focused on the interfacing of clients and systems and NOT the flow of information

Question 12

What information does a Flowchart provide?

Answer 12

A visual representation of the logical flow of data and a Chart of the physical aspects of this flow.

Question 13

What information does a Data Flow Diagram provide?

Answer 13

A Diagram ONLY of the logical flow of data.

Question 14

What is a “Bill of Materials”?

Answer 14

A detailed document specifying all the components and quantities required to manufacture a product.

Question 15

What is a “Voucher”?

Answer 15

A document validating the 3-Way Match which is central to approving payments in the Expenditure Process.

Question 16

What is a “Validity Check”?

Answer 16

Creates a framework where data entered into a key field must first be entered into a corresponding master table to mitigate inappropriate data

Question 17

What is a “Field Check”?

Answer 17

Designates specific character types that are allowed in a field (e.g. text, numeric, alphanumeric)

Question 18

What is a “Reasonableness Test”?

Answer 18

Validates the logic of input values when fields ore interdependent or relevant to each other

Question 19

What is a “Completeness Check”?

Answer 19

Verifies that all required data has been input

Question 20

What is “Closed-Loop Verification”?

Answer 20

Retrieves and displays info related to the input to prompt the user to verify accuracy before proceeding.

Question 21

From a control perspective, are Budgets and Forecasts Preventative or Detective in nature?

Answer 21

Detective, because budgets and forecasts are ultimately compared to actual performance AFTER it occurs to identify anomalies that need to be addressed.