Module 9

Question 1

Business processes are a series of activities that enable a company to

Answer 1

Meet one or more of its objectives

Question 2

Automated business processes vs manual

Answer 2

More consistent and efficient and better at identifying exemptions.

Question 3

Control activities for all processed transactions should be designed to provide management with reasonable assurance regarding (4)

Answer 3

• Effectiveness and efficiency of operations
• Reliability of management reporting, analysis and decision making
• Reliability of financial reporting
• Compliance with applicable laws and regulation

Question 4

Limitations of business processes (6)

Answer 4

• Obsolescence
• Cost
• Collusion
• Human error
• Unusual transactions
• Management override

Question 5

Computerised control activities (3)

Answer 5

• Master files - access, editing, integrity
• Configuration of computer system
• Review of exception reports

Question 6

Credit sales system - Phase 1

Answer 6

Sales order

Question 7

Credit sales system - Phase 2

Answer 7

Order fulfilment/ despatch

Question 8

Credit sales system - Phase 3

Answer 8

Invoicing

Question 9

Credit sales system - Phase 4

Answer 9

Payment Processing

Question 10

Returns Sales - Phase 5

Answer 10

Return received

Question 11

Returns Sales - Phase 6

Answer 11

Credit note processing

Question 12

Returns Sales- Phase 7

Answer 12

Refund made/ receivable cancelled

Question 13

Credit purchases system - Phase 1

Answer 13

Purchase order

Question 14

Credit purchases system - Phase 2

Answer 14

Receipt of goods

Question 15

Credit purchases system - Phase 3

Answer 15

Purchase invoice processing

Question 16

Credit purchases system - Phase 4

Answer 16

Payment processing

Question 17

Returns purchases system - Phase 5

Answer 17

Goods despatch

Question 18

Returns purchases system - Phase 6

Answer 18

Credit note processing

Question 19

Returns purchases system - Phase 7

Answer 19

Refund receipt/ payable cancelled

Question 20

Purchases in advance - Phase 1

Answer 20

Purchase order

Question 21

Purchases in advance - Phase 2

Answer 21

Purchase invoice processing

Question 22

Purchases in advance - Phase 3

Answer 22

Payment processing

Question 23

Purchases in advance - Phase 4

Answer 23

Receipt of goods`

Question 24

Inventory system - Phase 1

Answer 24

Receipt of inventory (receipt of goods - purchases cycle)

Question 25

Inventory system - Phase 2

Answer 25

Movement and manufacturing of inventory

Question 26

Inventory system - Phase 3

Answer 26

Holding of inventory

Question 27

Inventory system - Phase 4

Answer 27

Issuance of inventory (orders despatched - sales cycle)

Question 28

Inventory system - Phase 5

Answer 28

Valuation of inventory

Question 29

Perpetual (cycle) inventory count

Answer 29

Alternative to full year end count

Question 30

Main controls for perpetual inventory counts (6)

Answer 30

- Must be set programme of counts - All items must be counted at least once in the period - High risk/ value items should be counted more than once - Counter should prepare report showing discrepancies - Differences between system and count should be investigated and system figures amended - Process for investigating discrepancies

Question 31

If perpetual inventory counts straightforward with few problems,

Answer 31

Inventories figures for financial statements may be taken straight from inventory listing on the system

Question 32

HR/ Personnel System - Phase 1

Answer 32

Engagement termination of employees and maintenance of master data (HR)

Question 33

HR/ Personnel System - Phase 2

Answer 33

Work done and time recorded

Question 34

HR/ Personnel System - Phase 3

Answer 34

Calculation of payroll liability

Question 35

HR/ Personnel System - Phase 4

Answer 35

Payment of payroll liability

Question 36

Risks when a computerised system used for payroll (4)

Answer 36

- System crashes and payroll cannot be run - Unauthorised access to employees' personal data - Unauthorised changes to employee data - Unauthorised changes to payroll programme

Question 37

Key controls for fixed assets (4)

Answer 37

- All NCA acquired are identified as an asset - NCA accurately recorded in NCAR/ FAR and general ledger - All NCA disposals and transfers are identified and FAR is updated accordingly - Senior officials responsible for monitoring effectiveness, cost efficiency and operational use of assets

Question 38

Monthly financial reporting (4)

Answer 38

- Month-end journals - Month-end reconciliations - Production of management accounts - Production of year end financial statements

Question 39

Big data

Answer 39

Extremely large data sets that may be analysed computationally to reveal patterns, trends, and associations, especially relating to human behaviour and interaction

Question 40

Four Vs - big data

Answer 40

- Volume - Velocity - Variety - Veracity

Question 41

Volume

Answer 41

Sheer quantity of data - often beyond storage and processing power of traditional IT infrastructure

Question 42

Velocity

Answer 42

Rate at which data is created and processed

Question 43

Variety

Answer 43

Range of data sources available

Question 44

Veracity

Answer 44

Need for big data to be trusted and trustworthy