Law Office of Vincent L. Penta Accounts Receivable & Billing

1. Law Office of Vincent L. PentaAccounts Receivable & Billing Derek Huhta Micah McKee Natalia Meza Shaun Ripplinger

2. No company names should be given during the class presentation. • last a maximum of 10-15 minutes, not include detailed data flow diagrams, systems flowcharts or matrices, but include the following:  • Brief background on the business entity • Overview of the accounting information system you analyzed (start and stop points, internal and external entities) • Overview of internal control environment • Controls present and missing • System strengths • Suggestions for enhancements

3. Background • Founded 1987 • For profit company • Property Law and Real Estate Legal Services • Cowlitz County, Washington • Estimated yearly revenue $90000 • Employs five people

4. Overview of Accounting Information System • Start: Client requests services • Stop: Client’s payment on account • Internal Entities: Owner, Bookkeeper, Receptionist, Computer • External Entities: Client and the Bank • Hardware: Apple computer • Software: Time Slips and Quicken

5. Overview of Internal Control Environment • Effective and efficient operations • Reliable financial reporting • Compliance with applicable laws and regulations • COSO Framework • Control Environment • Risk Assessment • Control Activities • Information and Communication • Monitoring

6. Employee Trust • Files available to all employees • Nightly backups • Cross trained staff • Flexible

7. Present Controls

8. Missing Controls

9. System Strengths

10. Suggestions for Enhancement • “A Second Set of Eyes”

11. “A Second Set of Eyes” • Could prevent incorrect information from being keyed in • Reduce mistakes that could lead to improper billing • May help prevent fraud by an employee

12. Makes the information within the system valid and accurate • Provides documentation if the company is ever audited