In 2002, Thomas Turner opened the doors of Turner Patio Furniture (TPF) in Marysville, Pennsylvania. The company, which began with only 3 employees (Thomas and his two sons), has grown over a decade from a small business serving the local community into a privately held corporation that supports 156 manufacturing, sales, and administrative employees. TPF now supplies garden centers and home  companies throughout the northeast United States with high-quality patio furniture. TPF’s success has, however, caused the company to outgrow its information system, which consists of manual procedures supported by independent (nonnetworked) PCs in each department. You have been hired to assess TPF’s procedures and internal open AP file for items to be paid. When an accounts payable is due, the clerk accesses the department PC, prints a hard-copy cash disbursement voucher, and sends it to the cash disbursements department. The clerk then removes the liability from the digital AP subsidiary ledger. Finally, the clerk files the hardcopy invoice in the closed AP file. Upon receipt of the cash disbursement voucher, the cash disbursements clerk accesses the department PC, prints a vendor check, and records the check in the digital check register. Next, the clerk sends the check to the vendor and sends the hard-copy cash disbursement voucher to the general ledger department. When the fixed asset department clerk receives the packing slip from the user department, he accesses the department computer and records the asset in the fixed asset subsidiary ledger. Periodically, the clerk prepares an account summary that he sends to the general ledger. NOTE: The fixed asset department has additional procedures to manage the maintenance and disposal of fixed assets. These procedures are not part of this assignment. The general ledger clerk receives the cash disbursement voucher from the cash disbursements department and the account summary from the fixed assets department. The general ledger clerk then accesses the department PC and posts to the cash, AP control, and fixed asset control accounts. Finally, the general ledger clerk files the voucher and account summary in the department.

Required
a. Prepare a data flow diagram of the current payroll and fixed asset systems.
b. Prepare system flowcharts for the payroll and fixed asset systems.
c. Describe the uncontrolled risks associated with these systems as they are currently designed.
d. Describe the physical and IT controls needed to reduce the risks identified in “c” above.