JK Saddlery makes and sells saddlery and other rural supplies to local farmers and producers, as well as to tourists. Because their products are well known, they also sell in bulk to other retailers and also by mail order to the public. The founder and owner of the business, JK, is very -old school- and does not like selling over the internet. Instead, he uses the tried and proven method of selling only to trusted clients on credit and accepting payment by cash and cheques either at the cashier window or via the mail. Everyone else pays cash or credit card at the cashier’s counter in the shop.
JK Retail is a small family business, but it nevertheless has a very healthy cash flow. However, JK does not like to spend money if he does not feel that he needs to. Therefore he employs only one cashier, who also does the banking.
The Cashier’s counter
When a customer wants to buy something in the shop, he or she is taken to the cashier’s counter with the goods and a sales order prepared by the salesperson. The sales order contains all of the details of the items being bought, including each item’s unique stock ID. It also contains the agree on selling price that was agreed between the salesperson and the customer.
The cashier takes the payment that matches the amount on the sales order and issues a receipt. The customer’s copy of the receipt is stapled to the customer’s copy of the sales order and handed to the customer. The business’ copies are likewise stapled together and put on file for the accounting staff to collect. Cash that has been collected is placed in the cash drawer, which is then locked for security.
The cashier maintains two receipt books: one for cash and cheques received, and the other is for credit card receipts.
Payments received by mail
Each morning, the cashier opens all business mail and collects any cheques mailed in for payments. Usually, the cheque is accompanied by the stub of an invoice. A receipt is written out citing the invoice number so that the accounting staff can apply the payment to the specific invoice. If there is no invoice stub, the cashier will endeavor to make the receipt out to the proper customer account, and the allocation of payment to purchases is left to the accounting staff. The cashier mails the receipts back to the customers.
Banking
Each day at 4 pm, the cashier collects all cash and cheques in the cashier drawer and prepares for the banking. A standing amount of $500 is left in the locked cashier drawer. All remaining cash and cheques must total the sum of receipts in the cash/cheques receipt book made out since the last banking. Once this has been finalized, a report is made the receipt numbers are listed for each banking transaction so that the accounting staff can reconcile the bank account to cash and cheque receipts.
Required activities
Part A: Systems Documentation
1. Present a Context and Level 0 (logical) DFD based on the description above. If you have to assume things about the process to provide the optimal diagram, note your assumptions below your diagram.
2. Present a Process Map based on the description above. If you have to assume things about the process to provide the optimal diagram, note your assumptions below your diagram.
Part B: Risk analysis
1. Provide a brief report to JK that explains the risks present in his cashiering process.
2. Provide a brief control plan to JK that addresses these risks. You may choose to include a descriptive narrative in your plan.

Answer rating: 100% (QA)

Introduction The report gives a pointbypoint investigation of the business interaction of JK Saddlery It investigates the interaction and information streams of the association like deals cash install... View the full answer