Key decisions and information needs Cash must be safeguarded to prevent loss Use of remittance advice to help identify the source of cash payments. Inputs should be edited by the system and customer accounts updated. Electronic lockbox sends electronic notification of remittances EFT system eliminates paper checks and uses electronic payments between banks Control Objectives, Threats and Procedures Well-designed AIS provides adequate controls to ensure the following Transactions properly authorized. Recorded transactions are valid. Mail customer statements monthly Use cash registers in retail Deposit cash daily Independent reconciliation function.
Balance is the difference of sales and cash collections for sales.
Benefits of the data model Effective integration of traditional accounting data and operational data. Extra data such as time of day of a sale can be collected and analyzed Links of internal and external information are possible Query by SQL when relational data base is used Strategic marketing possible with data base to increase future sales Internal control considerations Support for foreign keys and referential integrity ensures the existence of primary key records in related tables. Effective access controls become even more important in a data base environment. Incompatible functions can be highlighted by E-R diagrams and system can be programmed to reject any attempt to perform incompatible functions by a single employee. When multiple roles are performed, auditors can check for compensating controls.