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- Refer to the four operations process goals shown in the control matrix (goals A–D in Figure 13.11). For each activity (purchasing, receiving, accounts payable, and
cash disbursements), describe an operations goal other than the one discussed in the chapter.
- Explain why ambiguities and conflicts exist among operations process goals, and discuss potential ambiguities and conflicts relative to the system goals you described in DQ12-1.
- Discuss how a “year-to-date purchases” field in the vendor record might be of use in selecting a vendor.
- Without redrawing the figures, discuss how Figure 13.4 and Figure 13.13 through Figure 13.16 would change as a result of the following independent situations (be specific in describing the changes):
- Purchasing a technical product that could not be inspected in the receiving department but had to undergo quality control testing before being accepted.
- Purchasing goods through an online auction site, so that the price changes each time a purchase is made.
- Making payments twice per month, on the fifth and twenty-fifth of the month, and taking advantage of all cash discounts offered.
Figure 13.14(the DFD depicting
the receipt of goods and services) shows an update to the vendor master data from bubble 2.1 and another update to that same data from bubble 2.3. Discuss the difference(s)
between these two updates. Be specific as to the nature of the data being updated in each case. How would your answer to this question be affected by your assumption about whether the
purchase order receiving notification entering bubble 2.1 was “blind” as to quantities? Explain.
Figure 13.15 shows still a
third update to the vendor master data from bubble 3.1. Speculate as to the nature of this update. Be specific.
- In terms of effectiveness and efficiency of operations, as well as of meeting the generic Information System control goals of validity, completeness, and accuracy, what are the arguments
for and against each of the following? Does it matter if the copy is paper or electronic?
- Sending a copy of the purchase order from the purchasing department to the receiving department.
- Having the “quantity ordered” field “blinded” on the receiving department copy of the purchase order.
- Sending a copy of the vendor invoice to the purchasing department for approval of payment.
- Sending a copy of the vendor invoice to the requisitioning department for approval of payment.
- “Auditors will never allow an organization to adopt a paperless system, so why do we waste our time bothering to study them?” Do you agree? Why or why not?
- Refer to Figure
13.7 on pages 434–437 (the systems flowchart for the PtoP process). After all necessary approvals have been added to the purchase requisition, it is routed to the buyer and “is
automatically sent to the audit data.” Speculate about the nature and purpose of the “requisition audit data.” Who might access this data and for what purposes? Hint: You might want
to consider the purposes that such data could serve in a completely paperless system.
- In the physical implementation depicted in Figure 13.7, the computer updated the accounts payable data upon receipt of a vendor invoice (a clerk handled any exceptions). Describe the procedures that you
believe should control that process.
- In the physical implementation depicted in Figure 13.7, the payment order and the remittance advice were either sent together through the banking system, or the remittance advice was sent directly to the
vendor. Which is better? Why?
- With an EDI system, a customer’s order may be entered directly into the Order-to- Sales system without human intervention. Describe control concerns under these circumstances.