BKAS 2013 NURIN AKIRA BINTI BAHARUDDIN s233713

NURHUMAIRAH BINTI MOHD SUPIAN s233761

MIMI FARLINI BINTI ZAMBERI s233790

NURUL IZZATTY BINTI MOHD NOR s233838

COMPANY BACKGROUND

No. Details Descriptions

1. Name of the company Aman Pharma Care2. Director (i) Mohd Yusof Bin Hj Yaacob

(ii) Siti Shamsiah Binti Hj Sailan

3. Type of Business Limited liability company4. Business Nature (service) Selling health stuff, the tool recovers help,

health food, vitamins or supplements, medication and diagnosis

5. Address No. 4, Taman Vistana Indah Jalan Langgar, 06500 Alor Setar, Kedah

6. Tel / fax 04-78791137. Business Hours Daily from 9am to 9pm8. Number of Employees 2 directors and 5 full-time employees

TABLE OF ENTITES AND ACTIVITIES

ENTITIES ACTIVITIES

Customers 1) Give an order

Warehouse 1) Receive sales order2) Prepare stock release and filed the original copy.3) Send the copy of stock release to account clerk to update inventory records

Cashier 1) Receive cash payment or credit card from customer2) Create a sales receipt to customer

Customer 1) Receive a cash receipt from cashier

Cashier 1) A copy of sales receipt is sent to account clerk for bookkeeping

Supervisor 1) Received verified cash collection from account clerk at the of the day2) Deposits verified cash to the bank the next day.

Account clerk 1) Receive copy of stock release from warehouse2) Reconcile cash receipts with current cash collection3) Record cash received in the cash book4) Summarize the sales and inventory records and post to general ledger

CONTEXT DIAGRAM

Customer

Sales Revenue & Cash Receipts

Bank

Payment

Goods & Receipts

Deposits

Physical Data Flow Diagram

SYSTEM FLOWCHART

SALES ORDER CYCLE Cashier Account Clerk Warehouse

Record Sales Order

Stock Release

General Ledger

Inventory

Pick Goods

and Prepare Stock

Release

Sales Receipt

File

Update File

Customer Order

CustomerSales

Receipt

Customer

CASH RECEIPT CYCLECashier Account clerk Supervisor

Cash

Cash

Customer Order

Record Sales Cash and

Prepare Sales

Sales Receipt

Reconcile the cash collection

Sales Receipt

Reconciled Cash

Collection

Reconciled Cash

Collection

Deposit Cash

Customer

Customer

Bank

WEAKNESS REVENUE CYCLE & CASH RECEIPT

LACK OF EMPLOYEES IN WAREHOUSE- Employ at least one more worker in charge of recording all of the stocks.- Many procedures need to be taken to trace back the missing record or else it will be

recorded as a loss.

THEFT OF CASH- Dishonest employees can steal from company.- Happens when cash payment from a customer but doesn’t enter the sale into cash

register.

A COMMON PUBLIC PASSWORD IS SET FOR THE COMPUTER SYSTEM- Any member in the company can access to any accounts or documents in the computer.

THEFT OF INVENTORY- Causes loss of assets and inaccurate inventory record.- Lower level employees of an organization usually perpetrate thefts.

FAILURE TO BILL CUSTOMERS- Causes loss of assets and revenue, inaccurate sales and inventory.

RISK EXPOSURE FROM THE INTERNAL CONTROL WEAKNESS LACK OF EMPLOYEES IN WAREHOUSE

- Might be error in recording inventory during the peak time. THEFT OF CASH

- Dishonest employees can steal from company.- It will cause a loss to company.

A COMMON PUBLIC PASSWORD IS SET FOR THE COMPUTER SYSTEM- Every people may log in to the computer and make illegal transaction into

the company system.- Competitors in the same industry may hack into company’s computer

system. THEFT OF INVENTORY

- Causes loss of assets and inaccurate inventory record. FAILURE TO BILL CUSTOMERS

- Causes loss of assets and revenue, inaccurate sales and inventory.

INTERNAL CONTROL ASSOCIATED WITH THE WEAKNESS

LACK OF EMPLOYEES IN WAREHOUSE- Should hire more employees.- Make sure that the list should be same as units of inventory in the end of

working day. THEFT OF CASH

- Make the right hiring decision based on their background.- Needs an employee code of ethics and conduct.

A COMMON PUBLIC PASSWORD IS SET FOR THE COMPUTER SYSTEM-Set up a private password that only accounting clerk and supervisor know it.

THEFT OF INVENTORY- Must secure inventory and restrict access.- Take a look at document inventory transfers.

FAILURE TO BILL CUSTOMERS- Segregate shipping and billing function, sequentially pre-number sales

orders, picking tickets, packing slips and sales invoice.- Ensure every shipment is recorded.