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This question relates to the Accounts Payables and Cash Disbursement processes in Lion

Electronics. You have been provided below a flawed flowchart. The flowchart contains
several errors. Using your knowledge of correct flowchart documentation you are
required to identify at least 14 drawing errors (not internal control weaknesses) in the
flowchart. Drawing errors include the use of incorrect symbols and/or where the
flowchart does not map to the narration provided below.

Each error you identify should be clearly circled and numbered (i.e., 1, 2, 3, …., or 14)
on the flowchart below. In the boxes below, write a brief explanation as to why each
circled and numbered error is an error.

Narration for Lion Electronics

Lion Electronics (LE) is a small sized business, which produces a variety of electronic
products such as integrated circuit boards and chips. LE has two branches in Singapore.
A Receptionist, Sales Clerk/s, Sales Representative/s and a Sales Manager are employed
at each branch. The capture and data entry of all customer sales orders occur at the
branch offices. All other activities such as the ones related to the purchasing, Accounts
Payable and Cash Disbursement processes are conducted at LE’s Head Office, located at
Tuas Road. LE employs the procedures described below.

The Accounts Payable clerk receives the Purchase Order and Signed Delivery Dockets
from the Purchasing Department and Receiving Department respectively. On receipt of
the invoices from the vendor at 4 pm, the Accounts Payable Clerk matches the invoices to
the Purchase Order and Signed Delivery Dockets. Invoices that cannot be matched to the
Purchase Order and Signed Delivery Dockets are forwarded to the Accounts Payable
Supervisor for further investigation. The matched documents are filed in alphabetical
order in the ‘invoices to be processed file’.

At the end of each month, vendors would send monthly statements detailing the invoices
outstanding and payments received during the month. These statements are normally
only received during the first week of the following month at LE. On receipt of the
statements, the Accounts Payable Clerk retrieves the vendor’s invoices, the Purchase
Order and Signed Delivery Dockets, and confirms that the invoices are recorded on the
statement. The Accounts Payable Clerk then checks that the invoice details match the
statement. After checking, the Accounts Payable Clerk sorts the invoice and completes a
disbursement voucher by writing each invoice number and the amount to be paid on the
disbursement voucher, and then keys in the payables details into the computer located at
the Head Office. The computer updates the accounts payables data. The matched PO,
matched signed delivery docket, annotated disbursement voucher and confirmed invoices
are then filed in the “disbursement vouchers to be paid” file.

Each Friday morning, the computer automatically prints cheques for all of the
disbursement vouchers entered during the week. The clerk immediately retrieves the
cheques from the printer, attaches the annotated disbursement voucher, and the confirmed
invoice before forwarding to the Accounts Payable Supervisor in the internal mail.

Every Monday morning, the Accounts Payable Supervisor signs the cheques after
reviewing the documentation. The signed cheques and supporting documentation are
returned to the Accounts Payable Clerk. The clerk sorts the cheques which are mailed to
the vendor and files the reviewed disbursement voucher and invoice in the “paid
invoices” file in alphabetical order.

Error 1

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Error 14