System Documentation

1) Evaluate the following situation and prepare the documentation of the procedures involved in the business activity being described. The resulting diagrams should facilitate the understanding of the understanding of the business process to assist the audit team in correctly assessing the risks within the process. correctly assess the risks within the process.

Data Management, Inc. (DM) is a supplier that provides data warehousing services to Nova Terra. data storage services to Nova Terra. DM sends a monthly invoice for its services to Nova Terra's accounts payable department. accounts payable department of Nova Terra. The invoice is received by Maria Fuentes, who is the department's secretary. Fuentes records the invoice manually in the the invoice manually in the accounts payable subsidiary. Once registered, the invoice is sent to Mr. Martin Mendoza, who works as an officer in the Cash Disbursement Office. Cash Disbursements Office. Mendoza processes the invoice and prepares a check for payment. The invoice and check are The invoice and check are sent to Laura Rivera, who is Nova Terra's treasurer. Laura approves and signs the check Laura approves and signs the check and then cancels the invoice. She then mails the check to the the supplier by mail and sends the cancelled invoice back to Martin Mendoza for him to record in the the cash disbursement journal and file it. Finally, Maria Fuentes manually records the disbursements from the cash disbursement journal in the accounts payable subsidiary. In the accounts payable subsidiary. This is the same subsidiary she used when she received the invoice at the beginning. invoice at the beginning.

2) Using various techniques learned in the module, prepare the documentation that documentation that shows the cash disbursement process of the Nova Terra company. Also, you must do the following:

• document flowchart (document flowchart)
• business process diagram (business process diagram or BPD)
• data flow diagram (data flow diagram or DFD)

You can use Microsoft programs: Word, Excel, PowerPoint or Visio to make the diagrams. diagrams. All are available in Office 365 through your NUC University student account. NUC University student account.

3) As a final reflection, compare the flow diagrams, BPD and DFD. Also, consider the following guiding questions Consider the following guiding questions:

• What general design principles are similar in the three techniques of documentation techniques?
• Mention at least three (3) limitations that the diagrams present for internal control assessment. evaluation of internal controls.