Control matrix

Case 2:

Answer the following questions on the Scranton sheet, using the information contained in the following case materials (narrative and flowchart).

Big, Inc.

Big is a major manufacturer of automobiles. This narrative describes the purchasing, accounts payable and cash disbursement process for original equipment windshields for its only supplier of windshields, Glass.

Bag’s inventory system requests the purchasing department to reorder windshields. When the PO is created a record is added to the PO file (all data is stored on magnetic disks) and an electronic transmission is sent to Glass. Glass acknowledges the order (also electronically).

Glass ships the order and sends an electronic invoice to Big. The electronic invoice data is recorded to a pending invoices file.

When the goods arrive at Big’s warehouse, a receiving clerk examines the goods and keys in the receiving data. The keying operation creates a receiving record on the receiving file and updates the PO record to reflect the receipt.

Each morning, the AP clerk accesses the pending invoices file to identify invoices for which there are receiving reports and POs. The computer matches the invoice data to the PO and receiving data and displays them to the clerk. If the data does not match the clerk follows up with Glass to resolve discrepancies. If the data matches, the clerk enters the date the invoice should be paid and an authorization code for the bank to transfer payment to Glass on that date. The payment authorization is encrypted and transmitted electronically to Big’s bank where it is stored until the payment date.

Complete the Control Matrix. Include at least 5 present controls (5 pts each) and at least 2 missing controls (6 pts each). Be sure to label the column headers (3 pts). 45 pts total. Additonally, identify at least 2 operations process effectiveness goals and add them to the bottom of the page as goal A and B. (2.5 pts each)

		Control Goals of the Operations Process	Control Goals of the Information Process
		Ensure effectiveness of operations	Ensure Efficient of resources	Ensure security of resources	IV	IC	IA	UC	UA
Recommended control plans	A	B	C
Missing Controls:

Control Goal A

Control Goal B

Big Co.

Computer

Inventory

System

Scan inventory file

to re-order

product

Route order info

to supplier

Inventory

PO

Glass

Record

supplier's ack. of

order

Record

invoice

data

Pending

invoices

Create receiving record

Update PO status

Receiving

AP Clerk

Each AM

Access

invoice data

Obtain and display

Invoice, PO and

receving data

Matched data

Key date

and accetamce

code

Transmit

payment info

to bank

Exception

routine

not

shown

Bank

When order

ships

Receiving

Clerk