HI5019: Strategic Information Systems for Business and Enterprise Page 1 of 3HI5019 Strategic Information Systems for Business and EnterpriseT1 2021Week 5 Interactive Tutorial QuestionsThis tutorial is based on Lecture 4 (Chapter 5).Question 5.1. Discuss the following statement: even in advanced technology system, the APclerk must perform a three-way match to approve all vendor invoices for payment.Question 5.2. What documents constitute the AP packet? What evidence does each documentprovide?Question 5.3. Discuss the importance of supervision controls in the receiving department andthe reasons behind blind fields on the purchase order.Question 5.4. In the basic technology system, the inventory control clerk reviews the purchaserequisition file to identify inventory needs. Explain how this file is created.Question 5.5. Discuss the objective of eliminating the receiving function. Whataccounting/audit problems need to be resolved.Question 5.6. We have discussed different aspects of the purchasing and account payable (AP)procedures in Week 5 lecture. Based on our discussion, review the following description ofthe purchasing and AP procedures for a company and answer the questions at the end.The purchasing agent receives an inventory status report on his computer terminal from theinventory control application, which identifies the items that need to be reordered. The agentselects the suppliers and enters this information into the computer terminal to create a digitalpurchase order (PO). He then prints and sends a copy of the PO to the supplier.When the goods are received directly into the warehouse, the warehouse manager counts andinspects them. The manager then creates a digital receiving report and updates the inventorysubsidiary ledger from the warehouse terminal.A few days later, the supplier sends an invoice to the AP clerk who reconciles it with thedigital copy of the receiving report. From her computer terminal, the clerk records thepurchase in the purchases journal and records the liability by adding a record to the APsubsidiary ledger and assigning a due date.Each day, the cash disbursement clerk visually searches the AP subsidiary ledger from herterminal for invoices that are due to be paid. The clerk prepares the check and records it in thedigital check register. The negotiable portion of the check is mailed to the vendor, and a checkcopy is filed. The clerk then closes the liability in the AP subsidiary ledger to mark the liabilitypaid.Required: Identify the internal control weaknesses in this system. Describe the uncontrolledrisks that result from these weaknesses.HI5019: Strategic Information Systems for Business and Enterprise Page 2 of 3Question 5.7. Refer to the given system flowchart.a) Discuss the uncontrolled risks associated with the system as currently configured?b) Describe the controls that need to be implemented into the system to mitigate the risksin the given scenario.Question 5.8. The flowchart below illustrates two alternative inventory ordering methods.Required:a) Distinguish between a purchase requisition and a purchase order.b) Discuss the primary advantage of alternative two over alternative one. Be specific.c) Under what circumstances can you envision management using alternative one ratherthan alternative two?HI5019: Strategic Information Systems for Business and Enterprise Page 3 of 3THE END
