Accounting Information System for Here4Beer Brewing Company

This report is about the development, documentation and analysis of an Accounting Information System (AIS) for Here4Beer Brewing Company. The report contains a project plan and proposal for the expansion of the market and recommends an AIS system as a solution to manage the expansion successfully. It covers three subsystems in the AIS solution that include inventory, payroll and production.

Executive Summary
This is the report of the assignment on Accounting information system (AIS) in which a
group is needed to complete a given task of development, documentation and analysis of a
system for an organization called Here4Beer Brewing company that manufactures and sells
beers in Northern Territory. In the group of three people, we have researched the market and
the industry for understanding and come up with a plan for the development of a new AIS
system which includes subsystems for inventory, production, and payroll management.
The company has a plan to expand by taking its distribution to new selected towns and
introduce a new beer, German Marzen to the territory market. The company has plans to
succeed in the expansion by establishing strong relationships with the local distributors of
beer, maintaining tight control over costs during expansion, and ensuring that products are of
high quality.
Keeping in mind these objectives, the group has analysed the case together and have come up
with recommendations for subsystems identified. They have gathered all AIS requirements
and have documented them along with the evaluation based recommendations given to ensure
successful expansion of the company.
This report contains a project plan and proposal for the expansion of the market and
recommends an AIS system as a solution to manage the expansion successfully. Thus, it is
divided into three parts that include presentation of the plan for project, requirements and
features of the AIS solution and lastly the recommendations to follow for the company during
its expansion. The report has covered three subsystems in the AIS solution that include
inventory, payroll and production.

Table of Contents
System Documentation and Analysis.................................................................................3
Organization and industry description......................................................................................3
Taghg Red......................................................................................................................................................3
Pilsner.............................................................................................................................................................3
Lager...............................................................................................................................................................3
Organizational Structure.................................................................................................................................3
Purpose and key features of each relevant part of the AIS.................................................5
Sales sub-system..........................................................................................................................5
Production sub-system................................................................................................................5
Payroll sub-system......................................................................................................................6
AIS and the main issues specific to e-business systems......................................................8
AIS sub-systems for managerial decisions.........................................................................8
Sales sub-system..........................................................................................................................8
Production sub-system..............................................................................................................10
Payroll sub-system....................................................................................................................11
System flow......................................................................................................................12
Narrative, DFD and Flow chart of the sales sub-system..........................................................12
Narrative, DFD and Flow chart of the production sub-system................................................16
Narrative, DFD and Flow chart of the payroll sub-system......................................................19
Internal Controls Analysis and Documentation, and Recommendations..........................22
Control Matrix Explanation for Production Sub-System........................................................22
Control Matrix Explanation......................................................................................................................23
Control Analysis.........................................................................................................................................24
Control Matrix Explanation for Payroll Sub-System..............................................................25
Control Matrix Explanation......................................................................................................................26
Control Analysis.........................................................................................................................................28
Control Matrix Explanation for Sales Sub-System..................................................................28
Control Matrix Explanation......................................................................................................................29
Control Analysis.........................................................................................................................................31
References.......................................................................................................................32

System Documentation and Analysis
Organization and industry description
Taghg Red
Red ale sold by the company is an Irish style ale which is produced using traditional ways
including roasted speciality malts. These malts give the beer distinguished taste and ruby-
colour blue appearance.
Pilsner
Pilsner is a clear, light and crisp beer that comes with a white foamy head. It is created as a
blend of fine malts including domestic and those imported, hops, and lager yeast with
bottom-fragmentation. The content of malts, hops, and yeast are balanced in delicate
proportions.
Lager
Lager is a relatively new product and is brewed in German Marzen style. It is a full-bodied
malted beer that combines hops imported from New Zealand, yeast strain from Europe, and
two row malted barleys from Australia. This combination has given the beer a unique warm
light amber colour and a distinguished taste. The company does not have much competition
in this category of beer as it is relatively less in availability but has demand. Thus, company
would promote this beer in new regions to increase its sales (Wang & Zeng, 2013).
Organizational Structure
The company has three people working at the managerial levels who are taking care of major
operations. These include
 Thuc Luc who would be managing bottling and shipping operations.
 Eliza Maddox and Viresh Verughese who manage the process of brewing in the
company
 Marketing and sales are managed by Tala Green

Besides these, the company had people on following profiles (Jerry, 2000):
 One bottling and shipping manager
 2 brewing managers
 Sales and marketing manager to assist Tala Green
 3 sales representative reporting to sales manager
 Bookkeeper
 Admin Clerk
 3 bottling staff and the company would hire 2 more in next 3 years
 3 shipping staff and the company would hire 2 more in next 3 years

Purpose and key features of each relevant part of the AIS
Sales sub-system
The sales sub-system plays an important role in the beer business. It accounts for total sales
made by the company in a particular month. The key feature of the sub-system is to ensure
that the order is processed appropriately and the new lead is converted into a confirmed order
and customers are provided with the order as per their taste. The sales sub-system is also
responsible to validate the existing customers and add new customers. Also, it is charges with
the responsibility of validating and maintain the stock. The sales also focuses on the proper
coordination with the brewers to ensure that every time the fresh and handcrafted beer is
supplied to the customers. Following are key purpose of the sales sub-system:
 To confirm the order of the customer.
 To identify the existing customers so that they can be given a discounted price or
loyal points.
 To ensure that payment are received from customers before confirming the order to
the brewer.
 To document the months of the highest and lowest sales which will help in grabbing
the best sales season.
 To document the highest and lowest selling beer type.
 To validate that orders are dispatched only after receiving the payment.
Production sub-system
The subsystem of production is the significant part of the brewery business as the company
makes profits through the selling of its goods. The key feature of just the sub-system of
production would be to use the appropriate raw materials to turn them into such an actual
usable product. The emphasis is on the effectiveness of maximizing its use of existing
resources with minimal waste. The manufacturing system is to blame for selecting the right
material for the commodity and choosing the right procedure (recipe). However, the

production system emphasizes on proper preparation with other divisions such as
procurement and sales to optimize the overall organizational work.
Purpose of the production subsystem
 Provide a variety of appealing liquor options for customers.
 Identify the materials needed by the buyer for the required product-To plan the
manufacturing processes in order to process the orders on time.
 Find an efficient and effective way of reducing the price of the product by diligent
equipment maintenance.
 Ensure that buyers ' food meets their standards about quality, flavor and safety.
 Document the hourly wages on the timesheet by each employee and to pass the report
to the payroll division.
 Provide employees with the requisite expertise to help them leverage the best possible
market opportunity.
Payroll sub-system
The sub-system of payroll plays a key role in a firm's overall economic growth. Employees
will be perceived being a firm's most valuable asset, and that becomes quite possible to pay
employees for their overall efforts. The payroll goal is to ensure that employees receive in
accordance with their classification and hours worked (Gracen.d). Upon receiving the
timesheet from those in the production department, the sub system will start and the
information is then checked and accepted by the supervisor for any further processing.
Employee compensation is measured using the up-to-date database information. Workplace
payroll information is also constantly updated in the workplace registry to provide a
consistent record of employee's benefits. Employee compensation slips for their fulfillment
and financial reporting are issued and passed to workers. Every week, payroll transfers are
reported as the compensation to the workers is made on the basis of the weekly hours they

make. An effective payroll department reflects an organization's commitment to its human
resources and helping build a good social image. Therefore, ensuring consistency becomes
very critical and so does clearing the dues.
Purpose of payroll Sub-system:
 Checking and checking payroll with supporting documentation such as the staff's
timetable. ensure fair payment for workers, such as salaries, rewards and bonuses.
 Management of payroll reports and additional details such as taxes, compensation
levels and absence.
 Answer director and government officials ' internal as well as external inquiries. Prop
coverage
 Answer director and state officials ' internal and external inquiries.
 Proper credit guarantee offered to people with the work and skill they have acquired.
payroll cost data to plan the funding budget.
 Filing as well as recording payroll taxes and providing legal enforcement
information.

AIS and the main issues specific to e-business systems
Besides the advantages, the use of e-commerce could lead to different challenges and
difficulties. The most common problem when using e-commerce is the security and privacy
violation issue, and there are several instances where an unknown hacker has compromised
personal details. As per the Cambridge research survey conducted by Forrester, it was
observed that 41 % of customers demanded that their data be excluded from the firm's
database because they thought that their information was being used recklessly by the
company (Fisher 2001). Viruses including Trojan codes could harm business operations and
the entire commercial system, allowing the hacker to harvest private information (Smith,
2004).
E-commerce will be here to continue and has become an effective method of operating a
business for most organizations and individuals. It should be available 24 hours per day, 7
days per week, to make most of e-commerce-based benefits. But people should use it, and by
offering them a feeling of security, this could be achieved. Therefore, when developing a
framework for the brewery business, the above issues would be ensured. In ensure that the
latest features are applied to the framework, the code will be modified from time to time.
Secure Sockets Layer (SSL) as well as Secure (SHTML) will be used to enforce
authentication to protect data by encoding the network connecting buyer as well as seller.
(Zwass 2017). To detect and defend against viruses as well as trojans, anti-virus anti-malware
technologies would be used.
AIS sub-systems for managerial decisions
Sales sub-system
Sales sub-system is very crucial for effective management of the business because It depicts
the total income of the organization coming from the purchase of the purchase of the beers. It

helps the management in making decisions related to the finance part like that of payroll.
Because payroll includes the expenses part and sales consists of the income or earning part. It
helps management in framing the earnings coming from which type of beer, type of
customers, type of location etc. Sales helps in eliminating those area where sales is below the
average level. With the increase in sales, new equipment can be purchased to lower down the
production cost and increasing the company’s revenues. Sales sub-system can eliminate
issues with respect to the payment by the customer by verifying it before sending it to the
gateway. The sub-system will eliminate the duplicacy of customer in system by verifying it
before processing the order. Also, it eliminates wastage by ensuring that only those many
beers are produced and handed over which are required by the customer. This will help in
keeping the taste intact and thereby increasing the sales of the company. It ensures that all
sales are recorded from offline or online medium and catered accordingly so that profits can
be used to reaching out to more customers.

Production sub-system
The management's position is crucial for any company as the director is also the one who
determines the business's daily decision. To make such decision makers collect information
of every business department wherein development is also one of them. Throughout most of
the companies, quality of service is one of the main goals and the output sub-system is
directly linked to customer satisfaction. The sub-system of production plays a key role in
supplying the director with data about customer requirements and needs, allowing them to
determine what to produce and how much? The director will also collect data from the
production department about either the quality and quantity of products required to make the
order. This will help the supervisor determine how many to order and which to order?
Additionally, the sub-system of output provides supervisors with details about the time it
takes, an amount of resources required and resources lost when producing the order. Using
this information, managers can optimize the manufacturing process by rostering the correct
number of employees and motivating employees to use the right quantity of goods, which can
minimize production costs.

Payroll sub-system
Payroll subs-system plays an important role in managing the salaries expenses of the
company. It represents the amount of funds which are to be allocated to the employee’s
salary. It helps in deciding bonus and other incentives of the company. The management is
able to make decisions related to the outflow of the funds. The payroll sub-system consists of
base pay and overtime pay. It can play a crucial role in finding which employee has taken
how much overtime and whether it was required. Hence, management can take a decision in
eliminating the unrequired overtime hours. Also, the company will be able to apply correct
tax deduction thereby eliminating any discrepancy in the IT returns. With the help of this sub-
system, the management will be able to estimate the working time of the employee on the
basis of number of leaves taken by the respective employee. Along with the IT returns, the
payroll sub-system ensures that all the deducted tax are submitted to the government on time.
If any discrepancy arises, then the company will have to pay for the legal irregularities. In the
given scenario, the payroll sub-system will ensure that all employees get their respective
salaries won time and credited in the account to avoid any cash fraud.

System flow
Narrative, DFD and Flow chart of the sales sub-system
In the sales diagram, the customer logs in first. The details of the customer, formatted and is
passed to the backend where it is processed and validated. The customer then proceeds to
make a purchase. Once the customer purchases a product, the system begins with verifying

the stock of that product. It verifies whether the stock in their warehouses via the in-built
inventory management system to ensure that they are sufficient enough to supply the
customer with their product. Once the stock availability has been verified, the order is then
passed on to the brewers. The brewers, receive a notification corresponding to the same and
then go on to view the details. It generates a corresponding sales invoice for the brewers. The
customer would’ve simultaneously paid for the order while booking for it, the same would
then be passed on to the accounts receivable processes where the payment details are verified
and then processed and credited to the bank. The brewer’s task at this point is to ensure that
they produce the required product, package it and then step forward with it. The Brewers
process the order and send it back through the supply chain process and eventually the order
ends up at customer. The entire workflow is precise and there is no wasted energy on
unnecessary processed and steps where it’s not needed (Muigua, 2018)..

The sales sub-system flowchart is the sub-process followed in the sales. Under this, it begins
with customer ordering the product. Once the customer places the order, the system generates
an invoice and sends it to the customer. The customer pays for the invoice and the payment
details are then received by the business. The ordered products are entered into the databased
and passed on to the computerized system where the orders are then processed. Once the

order is processed, it further passes on to the production department where it is produced and
then packed according to the needs and requirements of the customer. Before this, the product
is then verified and tested and cross-compared to ensure that the right product has been
prepared. The order is prepared by the brewer wherein it passes through different steps
including the order pickup, the preparation of orders and the completion of order pickup. The
order then is packed and a team verifies the packed order with the original order that was
placed by the customer. If this matches perfectly, the product is recorded as packed and is
then shipped to the customer. The shipped products is recorded into the database and shipped.

Narrative, DFD and Flow chart of the production sub-system
In the production diagram, this is slightly different than the sales diagram as in this data flow
diagram, the primary intention of the process is to produce the product as oppose to sales.
The very first step is when the customer orders the product. The customer would be ordering
the product on the site or through other means. The order data is then processed into sales
order and then passed through the production planning stage. In the production planning
stage, data of current employees is looked up. This results into providing a list of employees
who are available to work on the order based on their working hours and timings which they
could produce the given products. Further ahead the brew is prepared based on the Recipe
and best before stickers are prepared based on the recipe type. Once the product is prepared,
the products are handled over the bottling staff. The bottling staff would bottle the product
accordingly, and then pass it on to pack the product. Once the product has been packed, it is

then made ready for shipment. The packed products are then shipped and in order to do so,
the shipping staff would prepare the logistic details based on the orders of the product. Once
this is prepared, the shipping staff would begin shipping the product in batches accordingly to
ensure that the right product order is shipped to the right customer in the most cost-effective
and fastest way possible.
The next diagram is about the production sub-system wherein a sub-system of the production
flow will be described. This begins with the Sales wherein the customer places the order and
then the entire processing of order is started. As such, the orders is processed and the system
generates the order data. The order data is generated by the computerized system and is then
provided to the Staff. The staff then receives the order data in the form of list of orders and
then plans for production. The planning of production involves allocating the staff wherein
each of their responsibility would be to work on the brewery. The employee total working

hours are calculated and based on this calculation the total employee payroll is calculated.
The employee payroll is used to provide them with pay-slips ultimately leading them to earn
their salary. The production plan is based on the recipe. As recipe is the key factor which will
decide on the entire production of that order. In order to first produce the product, the recipe
is validated to ensure that they have the required inventory in stock. The product is then
prepared. Once the production is finished, the labelling for the product is done. After labeling
and production, the product passes through quality checks and if the product does not pass
through the quality checks, the products is destroyed and a waste record database is updated.
However, if the product is not destroyed which means that it has passed the quality checks,
then the product is shipped ahead and then delivered to the final customer.

Narrative, DFD and Flow chart of the payroll sub-system
The payroll diagram is about ensuring that each employee is paid according to their inputs in
a fair and efficient way possible. This begins with the production process generating data for
all the employees on the basis of their time that they have invested. The time-sheet of each of
the employees is prepared on the basis of working hours. The timesheet is then approved by
the management is then made final as the Billing sheet. The billing sheet is then used to
measure and calculate the pay of the employees. Further ahead the payment calculation is
primarily sourced or calculated from four different factors. All these four factors come
together to form the total payment that is to be paid to the employees. These four factors or
elements are the calculation of tax deduction, the calculation of the base pay, the calculation

of the overtime to be paid to the employees who worked overtime and the calculation of the
total number of leave that are taken by each of the employees. All these four elements come
together to help calculate the total payment to be paid to them. This entire data is then passed
on to the bookkeeping department. The bookkeeping department goes through the entire data,
lists down the amount that is to be paid to the employees based on the calculation provided
and then punches pay slips for each of the employees. Care is given to ensure that the pay
slips which are created are accurate and are based on the data provided by the previous
process. The printed pay slips are then forwarded to the next step wherein the payroll slip
data is updated and the amount is processed to be disbursed to the employees.

The payroll sub-system diagram helps in explaining the sub-system of payroll processing.
This comprises of four major sub-sections namely executive, data validation, computer,
management as well as staff. The executive begins with validating and cross-referencing the
production data with the timesheet prepared. This provides a summary of the timesheet which
then is passed on to the computerized system. Under this stage, the timesheet goes through
several distinct stages to arrive an amount which will be ultimately the amount to be paid to
the employees. The timesheet is also pre-approved by the management before it is used to
calculate the payment. The system calculates the employee’s payroll using the number of
leaves which they have taken, the total number of hours which they have worked, any
overtime which they have performed as well as tax deductions based on the current rules and
regulations. A net payable amount is then calculated and then the payroll is updated. The
amount is updated for each employee using the employee ID and the net pay is then reflected
in their Employee ID. The payroll is then passed to a different section and then pay slips for
each of the employees are printed. Each of the pay slip is then provided to their respective
employees based on the Employee ID. The pay slips further ahead is also used to credit
respective employees salary to their respective banks. The amount to be paid to the respective
employees based on the payroll is deduced from the bank account.

Internal Controls Analysis and Documentation, and Recommendations
Control Matrix Explanation for Production Sub-System
Control Matrix
Control Goals of the Operations System
Control goals for the
Information system
Ensure effectiveness of
operations by achieving
the following system
goals:
Ensure
efficien
t
employ
ment of
resourc
es
Ens
ure
sec
urit
y of
res
our
ces
For
production
process input
ensure:
For
comp
leted
order
file
ensur
e:
Recommended
Control Plans A B C D E
I
V IC IA
U
C
U
A
Present
controls:
P-1 Review order to
be processed
P
-1
P-2 Check the
order’s old
recipe P-2 P-2
P-3 Production
planning
(allocation of
resources) P-3
P-4 Production
planning
(Prepare
schedule of
production)
P-
4
P-
4 P-4
P-5 Control food
wastage
P-
5
P-6
Inspection of
end product
P-
6 P-6 P-6
P
-
6
P-7 Pack and
shipping of
packed product
P-
7 P-7
P
-
7
Missing
controls
M-
1
Analyse
feedback
M-
1 M-1
M-
1
M-
1
M-
1
KEY:
A Minimize total cost of production I Input Validity

V
B Timely delivery of the order
I
C
Input
Completeness
C Enhancing efficiency of the production
I
A
Input
Accuracy
D Meet customer’s taste
U
C
Update
Completeness
U
A
Update
Accuracy
Control Matrix Explanation
Present control
Recipe of the order – When the staff receives the order, then the same traditional recipe of
brewing is implemented by the organization i.e. hand-crafted beers in 20 barrel batches under
the supervision of the brewers.
Production planning (allocation of resources):
Efficient employment of resources goal – Once the order is confirmed and same old
traditional recipe is implemented, the resources are allocated to perform the additional work
i.e. taking the material to brewers and combining the recipe with the latest technologies. It
will further help in completing the order on time with same taste as required by the customer.
Production planning (Prepare schedule of production)
Effectiveness of goal A, B and C:
The staff makes a production schedule to ensure that all resources are well-aware of their
tasks and keep a check on delivery time. It will enhance the effective working of the brewers
and save time. Minimizing production time will result in reducing production cost. This is
achieved through improved productiveness of the employees and brewers.

Control Wastage of foods:
When the order is packages, it goes through inspection tests. There are chances that placed
order is not up to the standard and cannot be delivered and discarded. Here, it is required that
management should come up with strategies or test plans to avoid discarding after beer
preparation. Reducing wastage will surely reduce the cost of production.
Inspection of end product
Effectiveness of goal D: The end product is inspected by the staff to ensure that customer
receives that taste for which he had placed the order. Staff ensures that taste of the beer is
intact and is fulfilling the customer’s demand.
Pack and shipping of packed product:
The freshly and handcrafted beer is packed into barrels and loaded in the cool area. The
packed product is then delivered by the staff to the customer. This control ensures that order
is completed and delivered.
Missing control
Feedback analysis:
If the proper feedback taking mechanism is present in the sub-system, it would help in
finding out the high concern areas of the customers. And appropriate efforts and resources
can be allocated to these concerned areas which will help in reducing the customer issues and
provide considerable level of satisfaction.

Control Analysis
In the control matrix of production sub-system, 7 present controls and one missing control
were studied. The control matrix shows that key goal of preparing customer taste beers can be
achieved along with reducing the production cost. It also ensures that orders are delivered on
time by allocating sufficient and proficient staff. There is only one missing control i.e. the
feedback analysis. If the missing control is placed in the sub-system, then there can be
considerable decrease in the cost of the production. It will make the system more efficient.
Control Matrix Explanation for Payroll Sub-System
Control Matrix
Control Goals of the Operations System
Control goals for the
Information system
Ensure effectiveness of
operations by achieving
the following system
goals:
Ensure
efficien
t
employ
ment of
resourc
es
Ens
ure
sec
urit
y of
res
our
ces
For
production
process input
ensure:
For
comp
leted
order
file
ensur
e:
Recommended
Control Plans A B C
I
V IC IA
U
C
U
A
Present
controls:
P-1 Create timesheet
data
P-
1
P
-1 P-1
P-2
Approve
timesheet
P-
2 P-2 P-2 P-2
P
-
2
P-3 Calculate pay by
deducting
respective tax,
etc.
P-
3 P-3 P-3 P-3
P
-
3
P-4
Verification and
distribution of
payslips P-4 P-4
P
-
4
P-5
Updating of
database
P-
5 P-5
P
-
4
Missing
controls
M- Internal audits M- M- M-1 M- M-

1 1 1 1 1
M-
2
Payment
confirmation
from bank
M-
2
M
-2
KEY:
A Correct calculation of payroll
I
V Input Validity
B Regular updating of employee database
I
C
Input
Completeness
C Efficient generation of data
I
A
Input
Accuracy
U
C
Update
Completeness
U
A
Update
Accuracy
Control Matrix Explanation
Present controls
P-1: Create timesheet data
The effectiveness of goal A
The working hours of the employee are calculated from the production sub-system. It is the
starting point of payroll sub-system. The working hours are maintained in the form of manual
timesheet summary.
P-2: Approve timesheet
The effectiveness of goal A and C:
Once the timesheet data is entered, it is sent to the management for approval. It is an
important control because management cross-checks the entered timesheet data before any
calculation of payroll. It helps in finding any incorrect entry or any unapproved entered data.
The data is then further used for report generation and hence it acts as an effective control.
P-3: Calculate pay by deducting respective tax, etc.

The effectiveness of the goal A and C:
Payroll calculation includes various sub-tasks such as application of tax, leave record etc.
This controls helps in detecting any incorrect deduction or addition and hence any additional
amount can be prevented from going in the bank accounts. It is an effective control in
ensuring that actual base ray is used for calculating the salary along with approved timesheet
and leave record. The data is then further used for report generation and hence it acts as an
effective control.
P-4: Verification and distribution of payslips
The effectiveness of goal C:
The accounts clerk verifies and distributes the generated payslips to the employees. This
employee credits the pay in the account of the employee and it is the only authorized person.
Since the pay is transferred via bank, there is very less scope in frauds. The generated
payslips data is then further used for report generation and hence it acts as an effective
control.
P-5: Updating of database
The effectiveness of goal B:
Final payslip is used in updating the employee database. It also clarifies the total hours
worked by the respective employee.
Missing controls
M-1: Internal audit
The effectiveness of goal A, B, and C:

There is no internal audit which can ensure that there is security of data and correct data is
used for calculating pay amount along with generating data reports.
M-2: Payment confirmation from bank
The effectiveness of goal A:
There is no confirmation from the bank about the amount transferred in the bank as to what
amount has been credited to which employee.
Control Analysis
The key goals of the payroll control matrix is to ensure that there is no delay, inaccurate and
incorrect timesheet data is entered in the system. The system is lacking the controls such as
internal audit and payment confirmation from bank. These controls are essential as they will
check on the frauds in the system. The current controls also help in simplifying the process
and organization can easily afford an internal auditor for employee and pay management.
Control Matrix Explanation for Sales Sub-System
Control Matrix
Control Goals of the Operations System
Control goals for the
Information system
Ensure effectiveness of
operations by achieving
the following system
goals:
Ensure
efficien
t
employ
ment of
resourc
es
Ens
ure
sec
urit
y of
res
our
ces
For
production
process input
ensure:
For
comp
leted
order
file
ensur
e:
Recommended
Control Plans A B C D
I
V IC IA
U
C
U
A
Present
controls:
P-1 Customer order
process
P-
1 P-1 P-1 P-1
P-2 Stock level
check
P-
2 P-2 P-2
P
-2
P-3 Get payments
from customer P-3 P-3
P
-3
P-4 Forward order P P-4

details to brewer
-
4
P
-
4
P-5
Receive orders
from brewer
P
-
5 P-5
P
-
5
P-6
Process payment
P-
6
Missing
controls
M-
1
Reject incorrect
payment
M-
1
M-
1
M-
1
M-
1
KEY:
A Exact generation of order and processing it
I
V Input Validity
B Verification of current customer in the system
I
C
Input
Completeness
C Acknowledging the customer order
I
A
Input
Accuracy
D Verification of payment by customer
U
C
Update
Completeness
E Forward details to brewers
U
A
Update
Accuracy
Control Matrix Explanation
P 1: Customer order process
Effectiveness of goal A, Efficient of employment of resources:
Once the order is placed through the online system, it is forwarded to the sales staff. This
control ensures that correct order has been captured. It will reduce the wastage and customer
complaints. It ensures that correct input is entered immediately and it ensures high input
accuracy.
P 2: Stock level check
Effectiveness of goal B, Efficient of employment of resources: After the order is placed, the
sub-system will provide real-time check on the stock availability. Brewers are contacted and

checked whether there is any barrel for the order to be processed. The brewers will get only
the pick-up requests. The same is notified to the customer.
P 3: Get payments from customer
Effectiveness of goal D, Efficient of security of resources:
The payment is done in real-time which helps in detecting any fraud payment details given by
the customer. This control will reject any payment which is less than the total payment.
Rejection of extra payment ensures that company will protect the resources from fraud
attacks.
P-4: Forward order details to brewer
Effectiveness goal E and Security of resources:
Once the stock level is confirmed, the details of new order is sent to the brewer with shipping
address and payment confirmation. It helps in ensuring that orders are indeed passed on to the
brewers so that no extra order is sent for any fulfilment. Also it will help in reducing any
fraudulent request being sent to the brewers.
P 5: Receive orders from brewer
Effectiveness Goal D, Efficient of employment of resources:
Once the order is confirmed by the brewers, the packed order is sent to the office. The
inspection is conducted to ensure that exact order’s demand is fulfilled.
P 6: Sales database update
Effectiveness Goal E:

Once the barrel is dispatched from brewer and sent to the office for customer, the sales record
is updated in the system.
Missing Controls
M 1: Reject incorrect payment
Effectiveness goal A and D:
This control is missing at the very first step of receiving payment from the customer. This is
not cross-checked and hence there are high chances that without making payment, sales order
may not get processed properly and leads to incomplete order or customer’s complaint.
Control Analysis
The key goals of the payroll control matrix there exact order is processed, validating the stock
level, processing customer payment etc. These controls are essential as they will minimize
customer complaints with respect to the incorrect customer’s order. The current controls also
help in simplifying the process but the missing control is equally important to achieve the
goals of the sales control matrix.

References
Wang, J., & Zeng, M. (2013). Case Study on Improving Quality Management of W
Company’s New Product Development Project. Technology and Investment , 4(3),
153-163.
Muigua, K. (2018). Dealing with Conflicts in Project Management. KMCO.
Jerry F. Heimann. (2000). Contingency planning as a necessity. IBM Corporation.