Professor Adams' Lecture Materials

Learning Objective M03B-07: Use business process models and rules to implement internal controls.

3 Main Functions of Internal Controls

Prevention of problems
Detection of problems that arise
Correction of errors and related loss

Examples of Business Process Models and Rules to Implement Controls: Preventive Controls

Examples of Business Process Models and Rules to Implement Controls: Detective Controls

Examples of Business Process Models and Rules to Implement Controls: Corrective Controls

BPMN Implementing Proper Authorization Preventive Control

The goal of the process is to make payments. Organizations often control the payment process by matching purchase orders, receiving documents, and invoices. The Prepare Documents activity implements the matching, then the process flows to the intermediate event to await authorization. When authorized, the process flows to the Make Payment activity, and then ends.

BPMN Diagram Implementing Segregation of Duties Preventive Control

The goal of this process is to reconcile an organization bank account. Segregation of duty principles requires bank reconciliation to be done by someone who does not make payments or process receipts. In this example, the process starts and flows to a recurring activity, Make Payments, which would continue throughout the month. The process then flows to the Reconcile Bank Account activity and shows the two activities in different lanes to indicate segregation of duties.

UML Class Diagram Describing Segregation of Duties Preventive Control

In this UML class diagram, the Employees class is related to the Payments class, but the diagram shows two associations to indicate the two roles that employees play in that relationship. One role is the Authorizer of the payment(s), and the other role is the Preparer of the Payments.

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