COMP1731 Accounting Information System

1.Provide the BPMN activity model and REA UML Class model for your allocated process based on the interviews provided. You may need to merge information from multiple staff interviews in order to get a clear picture of your entire process. Remember that this is an internal working document, so it can be brief and technical, and assume knowledge of standard modelling conventions. Unusual adaptations or assumptions should be noted and reference made to how the models enforce the business rules indicated in the background and interviews. 

2.Analyze YNF’s risks and weaknesses on control monitoring and recommend improvements for your allocated process according to COSO’s Principles for Monitoring Activities #16 and #17. As this is an internal briefing document you can present findings in tabular format, but the business language used must be clear and accurate.

1. BPMN activity model and REA UML Class model for Sales Process of YNF

1.1 BPMN activity model for the Sales Process

1.2 REA UML Class Model for the Sales Process

2. Analysis on risks and weaknesses of YNF

In context to COSO’s principle 16 for monitoring activities, the organization does not considers a mix of ongoing and separate evaluations due to which there are various problems being faced in their business process. In the business, proper communication strategies are not being followed and there is little scope for evaluation of the existing processes. The organization is handling recording of data with the help of excel and there is no proper information system which is making their business process complex. Basically, there is also no internal control system in the organization so ongoing and separate evaluations is not possible for their business process. The evaluation has also not been carried out on their business process so that they can adjust it according to their requirements. Further, separate evaluations are also not carried out periodically so that they can acquire feedback and improve their business process with the help of new information system.

According to the COSO’s principle 17 for monitoring activities, it has been identified that the organization does not have suitable communication procedure for delivering the internal control deficiencies to the senior management or higher authorities. The evaluations of the current business process is not taken into consideration so it is not possible for the senior management or higher authorities of the business to determine the issues. The issues or problems being faced while conducting the business process are not communicated effectively to the senior management or higher authorities of the business so there is no measure taken for the internal control deficiencies. There is no scope for corrective actions as the deficiencies are not being communicated properly. The deficiencies are not being monitored on a timely basis as the management is not well aware of those and there is no proper process being followed to mitigate the issues within internal control system of the organization.

Bibliography

Chang, S. I., Yen, D. C., Chang, I. C., & Jan, D. (2014). Internal control framework for a compliant ERP system. Information & Management, 51(2), 187-205.

Garcia-Holgado, A., García-Peñalvo, F. J., Hernández-García, Á., & Llorens-Largo, F. (2015, July). Analysis and improvement of knowledge management processes in organizations using the business process model notation. In Annual Conference of the Global Innovation and Knowledge Academy (pp. 93-101). Springer, Cham.

King, A. M. (2016). A guide to COSO's framework: an important, practical resource to help your transition to the updated COSO internal control framework. Strategic Finance, 97(10), 12-13.

Roeser, T., & Kern, E. M. (2015). Surveys in business process management–a literature review. Business Process Management Journal, 21(3), 692-718.

Rosemann, M., & vom Brocke, J. (2015). The six core elements of business process management. In Handbook on business process management 1 (pp. 105-122). Springer, Berlin, Heidelberg.

Vom Brocke, J., Petry, M., & Gonser, T. (2016). Business process management. In A Handbook of Business Transformation Management Methodology (pp. 137-172). Routledge.