CASE A: AAA Electrical, Inc. (Cash Receipts Process) AAA Electrical, Inc. sells electrical parts to electrical contractors in the southeastern United States. AAA Electrical customers mail their paymentsattached to the stub (i.e., remittance advice [RA]) from their monthly statementto AAA Electrical accounts receivable (AR) office. An AR clerk confirms that the check amount agrees with the amount on the RA and sends the checks to the cashier. The AR clerk prepares batch totals of the customer numbers, invoice numbers, and amount paid. The AR clerk then enters the batch totals and RAs into the computer, where the AR master data are updated to record the payment. The computer reconciles the batch totals, confirms job completion, and reports discrepancies, if any, to the AR clerk.

Requirements:

a. Draw a systems flowchart. b. Prepare a control matrix, including explanations of how each recommended existing control plan helps to accomplishor would accomplish in the case of missing planseach related control goal. Your choice of recommended control plans could come from Exhibit 11.1 (pg. 431) and/or Exhibit 11.2 (pp. 437438) plus any other control plans from Chapter 9 or Chapter 10 that are germane to your companys process. c. Annotate the flowchart prepared in part a to indicate the points where the control plans are being applied (codes P-1, , P-n) or the points where they could be applied but are not (codes M-1, , M-n).