Flow Diagram Project Homework

Flow Diagram Project

You are to create a new business (hypothetical) and at the highest level talk about the nature of your business, the products you sell and/or services you provide, the target market for your products or service, the organizational and business structure, key business risks and the key technology components appropriate for the first year of operation. Your company must be headquartered in the US and follow US GAAP.

Background:

Each person has initial total assets equal to $500,000 with the following composition: Cash $450,000 and Short-term investment $50,000. $75,000 of the $450,000 cash is a bank loan (5-year note payable) at interest rate of 4% and the remainder is contributed capital based on your business structure. Your company was incorporated on April 8, 2020 and all transactions occur in the month of April. The first reporting date is April 30, 2020.

Imagine that you are providing information to the board of directors and the external auditors. The information contained in the company overview document, the chart of accounts, AIS, and controls matrix should be descriptive enough for an outsider to understand the company but not wordy or redundant. It should be professional – using appropriate headers, paragraphs, diagrams, color, and any other formatting or tools available to ensure the information is understandable.

Overview:

The purpose of this project is for you to:

1) Develop an in-depth understanding of origination of a business and constructing flow diagrams to couple business requirements

2) Build professional briefs to explain your business

Deliverables:

(1) High-Level document explaining your company created above ($500,000) which should include the business name, nature of business, products sold, target market, business structure (should have a board), business risks and technology.

(2) Understanding to operate you need to purchase resources to use and consume (assets and expenses) in order to earn revenue – this is called expenditure cycle. Please create a narrative describing a sample transaction’s flow through your expenditure cycle. The narrative should include:

· the requirement determination, vendor selection, and the purchase order

· the receipt of goods

· the invoice verification

· the vendor payment

In addition, you will create a flowchart that illustrates the process.

(3) It is imperative that your business make money/revenue. As such you will create a narrative describing a sample transaction’s flow through your revenue cycle.

The narrative should include:

· The initial inquiry from a potential customer

· The creation of the contract, if appropriate,

· The credit policy, if you extend credit

· The order entry

· The shipment, delivery, or rendering of the merchandise

· The billing, if appropriate

· The cash collection

In addition, you will create a flowchart that illustrates the process.

Company Overview (40%)

Consider how each concept/topic discussed relates to your business.

Expenditure Cycle (30%)

Please craft a response to the expenditure cycle using the following two requirements:

· Word document that describes an expenditure transaction from procurement to payment (e.g. a narrative of the process).

· Flowchart (either in Microsoft Visio or in PDF if another tool is used) visually depicting the expenditure process

A few things you may want to discuss:

· (1) Who initiates and who authorizes purchase requisitions and purchase orders?

· (2) What are the potential threats to your ordering process? What internal control policies are you going to enforce to mitigate these risks?

· (3) How do you assign job responsibilities to ensure segregation of duties in ordering, receiving, and disbursement?

· (4) Inbound logistics is a labor-intensive process. What technological tools do you plan to use to improve the efficiency of the process?

· (5) How many duplicates of the purchase order and the receiving report are appropriate for your business and where do they go after they are created?

· (6) When and who will prepare the payment voucher?

· (7) When is the “inventory” account debited and the “accounts payable” updated in the subsidiary ledger and in the control ledger? Who is responsible for each of these tasks?

· (8) What are the key internal controls that you would implement to ensure the records are accurate, valid, and complete?

· (9) Are there independent checks and reconciliations in your procurement process?

Revenue Cycle (30%)

Please consider the following questions as part of your related submission for the revenue cycle.

(1) Who responds to initial inquiries?

(2) Who handles the proposal/negotiation?

(3) What is the credit policy?

(4) How do customers order goods or services? (by Internet? By Phone? Walk-in?)

(5) Where does the order go?

(6) Who will see which part of the order? (Warehouse? Billing? Inventory Control? Cashier?)

(7) When and who will prepare the invoice, if appropriate?

(8) When and how does the order become sales revenue and accounts receivable?

(9) What is the outbound logistics process?

(10) What are the internal controls that you would implement to ensure the records are accurate, valid, and complete?

(11) What internal control techniques (e.g., customer audit, secret shopper, petty cash) would be appropriate for your cash collection process?

(12) Is a cashless payment system appropriate for your business? If so, what type might you use? How does a cashless payment affect how transactions are recorded?

(13) Consider the key decisions you will make throughout the revenue process, what quantitative analyses will offer insight into these decisions? When and where would you collect such information?

(14) What controls would you implement to ensure privacy (customer) and confidentiality (trade secrets, etc.)?

Please craft a response to the expenditure cycle using the following two requirements:

· Word document that describes each major revenue stream from order to cash receipts (e.g. a narrative of the process)

· Flowchart (either in Microsoft Visio or in PDF if another tool is used) visually depicting the revenue process

Audience:

Assume that you are owner and that the audience for this submission is your board of directors and funders (e.g. bankers).

Get Essay Writing Help with HelpHub

HelpHub
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Choose HelpHub

HelpHub

Quality Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

HelpHub

Qualified Writers

We have hired a team of professional writers experienced in academic and business writing. Most of them are native speakers and PhD holders able to take care of any assignment you need help with.

StudyAcer

Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account.

StudyAcer

On Time Delivery

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. We will always strive to deliver on time.

StudyAcer

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text.

StudyAcer

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Help Hub

Place your order

Fill in the order form and provide all details of your assignment.

Help Hub

Proceed with the payment

Choose the payment system that suits you most.

Help Hub

Receive the final file

Once your paper is ready, we will email it to you.

HelpHub Writing Services

No need to work on essay at night. Sleep tight, we will cover your back. We offer all kinds of essay writing services.

HelpHub HelpHub

Essays

Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

HelpHub HelpHub

Admissions

Admission Essays

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

HelpHub HelpHub

Editing

Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

HelpHub HelpHub

Revision

Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied.