SIA-A-Presentasi Group 2 Revenue Cycle Case Smith’s Market

Summary

This transcript outlines a case study of the SMI market's Point of Sales (POS) system and internal controls. It highlights the flow of data, money, and documents through the system, detailing the roles of customers, cashiers, supervisors, and treasury officers. The document identifies key weaknesses in internal controls, including issues with transaction authorization, task segregation, supervision, and recordkeeping. The transcript then suggests solutions, including enhanced IT controls like authentication, role-based access, and encryption, alongside improvements in operational processes to mitigate risks and ensure financial security and efficiency.

Takeaways

• 😀 The system outlined in the case study focuses on a point-of-sale (POS) process at SMI market, detailing the flow of information, money, and documents between various entities.
• 😀 Key entities identified in the system include customers, cashiers, supervisors, and treasury officers, each playing a crucial role in transaction processing and cash management.
• 😀 The system includes data flow processes such as cashiers receiving payments, supervisors handling shift-end reconciliation, and treasury officers preparing bank deposits.
• 😀 The flowchart provides a step-by-step breakdown of daily operations, from cash drawer preparations by the treasury officer to daily transactions by cashiers and their end-of-shift handoff to supervisors.
• 😀 Several internal control weaknesses were identified, such as the lack of formal authorization procedures for receiving checks, and insufficient separation of duties among cashiers.
• 😀 Supervisors' oversight is limited to signing records without physically verifying cash amounts or transaction details, creating potential risks of undetected errors or fraud.
• 😀 There is no formal reconciliation process between recorded sales and cash received, increasing the risk of errors or manipulation in accounting records.
• 😀 The market's access control systems are insufficient, with multiple staff members having access to cash registers, which can lead to theft or misuse.
• 😀 The absence of independent verification before cash is deposited into the bank increases the risk of financial discrepancies or fraud going unnoticed.
• 😀 Proposed technological improvements include the implementation of user authentication, role-based access controls, and point-of-sale integration to improve security, reduce manual errors, and ensure accurate financial tracking.

Q & A

What are the main entities identified in the Data Flow Diagram (DFD) of the market system?

The main entities identified are: 1) Customers, 2) Cashiers, 3) Supervisors, and 4) Treasury Officers.

How does the flow of data occur in the system according to the DFD?

The flow of data follows these steps: 1) Customers make payments to the cashier, 2) The cashier issues a receipt, 3) Cashiers hand over transaction results to the supervisor, 4) The supervisor submits cash and transaction records to the treasury officer, and finally 5) The treasury officer submits the funds to the bank.

What are the key responsibilities of a supervisor in the system?

The supervisor's key responsibilities include collecting cash registers from cashiers at the end of their shifts, verifying and transferring all cash to the treasury officer, and ensuring the accuracy of the amounts being transferred.

What weaknesses in internal control were identified in the market system?

Key weaknesses include: 1) Lack of authorization procedures for checks, 2) No clear separation of duties for cashiers, 3) Inadequate supervision of cashiers, 4) Absence of reconciliation between sales and cash receipts, 5) Poor access control to cash registers, and 6) No independent verification of transactions before deposit.

What internal control technology improvements were recommended for the market system?

The recommendations include: 1) Implementing authentication and authorization for system access, 2) Using role-based access control, 3) Integrating point of sales (POS) systems, 4) Encrypting sensitive data during transactions, 5) Enabling audit logs and monitoring, 6) Implementing regular data backups, 7) Enforcing task separation in the digital environment, and 8) Automating verification of transactions like credit card checks.

What is the purpose of implementing role-based access control in the system?

Role-based access control is intended to limit access to certain data or systems to specific personnel, ensuring that employees only have access to the functions relevant to their roles, thereby reducing the risk of unauthorized access and manipulation of sensitive information.

Why is the use of an integrated POS system important for the market?

An integrated POS system is important because it ensures real-time recording of sales transactions, reduces the risk of manual errors, automatically updates inventory, and helps in better tracking of financial and product data, ultimately enhancing operational efficiency.

How would encryption and network security contribute to improving the market's system?

Encryption, such as SSL or TLS, would protect sensitive customer data during credit card transactions, preventing data breaches. Additionally, an intrusion detection system would secure the company's network against cyber-attacks, safeguarding customer information and ensuring transaction integrity.

What is the significance of audit logs and monitoring in the market's system?

Audit logs and system monitoring are essential for tracking all employee activities, allowing supervisors or auditors to periodically check for anomalies or fraudulent actions. This helps in identifying suspicious behavior early, ensuring accountability, and providing accurate records for audits.

What role does task separation play in preventing internal fraud in the system?

Task separation ensures that no single employee has full control over critical processes like receiving payments, recording transactions, and managing cash. This reduces the risk of internal fraud, as multiple parties need to collaborate, making fraudulent actions harder to execute without detection.