Part 1: Fiscal Controls

Payroll Controls

Describe how internal controls are used to prevent errors or fraudulent acts in the payroll cycle.

· Provide specific examples of the most effective internal controls for each of following parts of the payroll cycle:

o Authorizing and modifying the payroll master file.

o Recording and verifying time worked by employees.

o Preparing paychecks.

o Distributing paychecks.

General Ledger

Describe common general ledger errors and discuss the circumstances under which these errors can occur. Be certain to address each of the following issues related to the general ledger:

· Data integrity of routine journal entry transactions.

· Creation of journal entries by the treasurer for non-routine transactions.

· Data availability.

· Data security for reporting processes.

· Data integrity for decision-making processes.

Part 2: System Evaluation

Analyze the selected company and design for specific internal controls procedure or procedures that would be most effective in preventing the previously identified types of errors in the company’s general ledger.

Flow Diagram and Flow Chart

Evaluate business activities and information processing discussed in the YYY scenario. Represent your data using the following:

· A data flow diagram.

· A system flow chart.

Efficiency Improvements

Describe opportunities for efficiency improvement using information technology. Then, design a comprehensive set of control procedures that address potential threats in the following areas:

· Product design.

· Planning and scheduling.

· Production operations.

· Cost accounting.

Support the choices you made in creating your control procedures with relevant resources. Written communication should be free of errors that detract from the overall message. Your writing should be formatted according to APA style.