Case 1 As the internal auditor for No-Wear Products of Hibbing, Minnesota, you have been asked by your supervisor to document the company’s current payroll processing system, Based on your documentation, No-Wear hopes to develop a plan fo0r revising the current information system to eliminate unnecessary delays in paycheck processing. Your best explanation of the system came from an interview with the head payroll clerk: The payroll processing system at No-Wear Products is fairly simple. Time data are recorded in each department using time cards and clocks. It is annoying, however, when people forget to punch out at night and we have to record their time information by hand. At the end of the period, our payroll clerks enter the time card data into a payroll file for processing. Our clerks are pretty good though I’ve had to make my share of corrections when they mess up the data entry. Before the payroll file is processed for the current period, human resources sends us data on personnel changes, such as increases in pay rates and new employees. Our clerks enter this information into the payroll file so it is available for processing. Usually, when mistakes get back to us, it’s because human resources is recording the wrong pay rate or an employee has left and the department forgets to remove the record. The data are then processed and individual employee paychecks are generated. Several important reports are also generated for management-though I don’t know exactly what they do with them. In addition, the government requires regular federal and state with holding reports for tax purposes. Currently, the system generates these reports automatically, which is nice. Required a. Prepare a context diagram and Level O DFD to document the payroll processing system at No-Wear Products. b. Prepare a document flowchart to document the payroll processing system at No-Wear Products. Case 2 A mail order skin and body care company advertises in magazines. Magazine subscribers initiate most orders by completing and sending coupons directly to the company. The firm also takes orders by phone, answers inquiries about products, and handles payments and cancellations of orders. Products that have been ordered are sent either directly to the customer or to the company’s regional office that handle the required distribution. The mail order company has three basic data files, which contain customer mailing information, product inventory information, and billing information based on invoice number. During the next few years, the company expects to become a multimillion-dollar operation. Recognizing the need to computerize much of the mail order business, the company has begun the process by calling you. Required Draw a context diagram and at least two levels of DFDs for the preceding operations.

Case 1 and 2 - AIS Case Studies

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