| Course | ACC-7010 Auditing and Accounting Information Systems |
|---|---|
| Module | Module 3 |
| Paper type | Module 3 written assignment: modeling transactions and placing controls |
| Length | About 713 words, 5 pages |
| Format | APA 7 student paper |
| School | Thomas Edison State University |
| Program | MBA in Accounting |
| Updated | October 2026 |
Free sample paper for ACC 7010 Module 3
Modeling Purchase to Pay: Activity Diagrams, Class Diagrams and Controls at a Medical Supply Distributor
Student Name
MBA in Accounting, Thomas Edison State University
ACC-7010: Auditing and Accounting Information Systems
Mentor Name
Month Day, Year
Modeling Purchase to Pay: Activity Diagrams, Class Diagrams and Controls at a Medical Supply Distributor
Introduction
Hurt (2016) describes the accountant's role in information systems as user, manager, designer and evaluator. Each role requires reading and creating models of business processes and data. Activity diagrams show the sequence of steps and who performs them; class diagrams show the data the system stores and how records relate; together they show where controls belong.
Part A: The Purchase-to-Pay Activity Diagram
The process runs across four swim lanes: inventory planning, purchasing, receiving and accounts payable.
Gateways in the diagram mark decisions: whether approval is required at step 3, and whether quantities and prices match at step 6. Exceptions route to a buyer for resolution.
The diagram makes segregation of duties visible: no lane both creates a purchase order and approves the payment for it, and receiving, which confirms the goods arrived, sits in a lane separate from purchasing.
| Step | Lane | Activity | Data created or used |
|---|---|---|---|
| 1 | Inventory planning | System flags items below reorder point | Inventory, reorder rules |
| 2 | Purchasing | Buyer creates purchase order from approved supplier list | Purchase order, supplier |
| 3 | Purchasing | Orders over $50,000 routed for manager approval | Approval record |
| 4 | Receiving | Goods scanned against open purchase order | Receiving report |
| 5 | Accounts payable | Supplier invoice entered | Invoice |
| 6 | Accounts payable | Invoice matched to purchase order and receiving report | Match result |
| 7 | Accounts payable | Approved invoices paid by scheduled ACH run | Payment |
Part B: The UML Class Diagram
Multiplicities matter for controls. An invoice may cover several receipts and a payment several invoices, so linking tables are needed. A unique constraint on supplier and supplier invoice number prevents the same invoice being entered twice, a common cause of duplicate payments.
| Class | Key attributes | Associations |
|---|---|---|
| Supplier | SupplierID, name, bank account, approved status | One supplier to many purchase orders |
| PurchaseOrder | POID, date, buyer, approval | Many lines; one supplier |
| Item | ItemID, description, reorder point | Appears on many order lines |
| ReceivingReport | ReceiptID, date, receiver | Fulfills one or more purchase orders |
| SupplierInvoice | InvoiceID, supplier invoice number, amount | Relates to purchase orders and receipts |
| Payment | PaymentID, date, amount | Pays one or more invoices |
Part C: Batch Versus Real-Time Processing
Today, clerks enter paper and PDF invoices in daily batches, and a clerk compares them with purchase orders and receiving reports by hand. Batch processing is efficient for high volumes and allows batch totals as a control, but errors surface late, discounts for early payment are missed and the ledger shows liabilities only after entry. In the redesigned process, suppliers submit invoices electronically, and the ERP system matches each one in real time against the purchase order and receiving report within tolerances of 2 percent on price and zero on quantity. Matched invoices are approved automatically; exceptions go to a buyer. Real-time processing keeps the ledger current and supports early payment discounts, but it shifts control from people to system configuration, so tolerances and approval rules must be protected by change management.
The change also affects the auditor. In the batch process, auditors tested the clerk's matching by inspecting a sample of invoice packages. In the real-time process, they will test the system's configuration once, confirm that tolerances cannot be changed without approval and then rely on the automated control for every invoice, reducing the sample-based work.
Part D: Control and Management Concepts
Applying COSO's five components (Committee of Sponsoring Organizations of the Treadway Commission, 2013) to the redesigned process:
Business process management treats the process as something to measure and improve continuously. Grabski et al. (2011) note that ERP systems allow organizations to redesign processes and embed controls, but that the benefits depend on how the processes are configured and governed after implementation. Suitable measures here are the share of invoices matched without human touch, days to pay and discounts captured, along with exception counts as an indicator of control health.
| Component | Application |
|---|---|
| Control environment | Purchasing policy approved by the CFO; buyers sign a conflict of interest statement |
| Risk assessment | Key risks: fictitious suppliers, duplicate payments, paying for goods not received |
| Control activities | Approved supplier list maintained outside purchasing; three-way match; approval limits; unique invoice constraint |
| Information and communication | Exception reports to buyers daily and to the controller weekly |
| Monitoring | Internal audit analytics on duplicate amounts and supplier bank changes each quarter |
References
Committee of Sponsoring Organizations of the Treadway Commission. (2013). Internal control: Integrated framework.
Grabski, S. V., Leech, S. A., & Schmidt, P. J. (2011). A review of ERP research: A future agenda for accounting information systems. Journal of Information Systems, 25(1), 37-78. https://doi.org/10.2308/jis.2011.25.1.37
Hurt, R. L. (2016). Accounting information systems: Basic concepts and current issues (4th ed.). McGraw-Hill.
What the ACC 7010 Module 3 instructions ask for
The third module's assignment switches from auditing to modeling the systems that auditors examine. Expect questions on the accountant's roles in systems, modeling processes with BPMN activity diagrams and data with UML class diagrams, comparing batch and real-time processing, transaction cycles and applying internal control and management frameworks such as COSO and business process management. Some prompts provide a narrative to model. Expect to model a process from a narrative and to explain where controls belong. Some versions ask for the class diagram to be converted into tables or for queries against it, and others ask you to compare two processing methods for a given business.
How this ACC 7010 Module 3 example is built
The introduction sets out the accountant's roles and why models matter. Part A presents the purchase-to-pay activity diagram as a table of steps by swim lane, with gateways and exceptions. Part B lays out the class diagram, with multiplicities, and shows how a constraint prevents duplicate payments. Part C compares batch and real-time processing, including the control trade-offs. Part D applies COSO's components to the process in a table and adds business process management measures, citing research on ERP and process redesign. The tables can be redrawn as diagrams directly, and the closing measures show how the redesigned process would be monitored after it goes live.
ACC 7010 Module 3 rubric: what earns full marks
The purchase-to-pay models can earn as much as 7.5 points. Mentors here check accurate activity and class diagrams, a sound comparison of processing methods, correct application of COSO and an understanding of how models support controls. Linking each model to control design, and applying concepts to one process consistently, shows depth. Diagrams may be drawn or described in tables, as long as the elements are correct. Diagrams whose elements are correct, with swim lanes, gateways and multiplicities shown, and a control assessment tied to the process steps, demonstrate mastery. Explaining how the model supports audit testing connects this module to the auditing half of the course. Showing how the redesign changes the auditor's testing approach, from samples to configuration tests, ties the module together.
ACC 7010 Module 3 help from the desk
AIS modeling answers lose points by mixing process steps with data, omitting swim lanes or gateways and leaving many-to-many associations unresolved. Model the process and the data separately, then connect them through controls. Show how each control appears in the diagram. Model the process and the data separately, then mark on both where each control operates. Check every association for its multiplicity before deciding whether a linking class is needed. Name each swim lane by role. Mark each control on the diagram where it operates, not in a separate list. A free first sample of your own ACC-7010 Module 3 assignment is available on request.
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ACC 7010 Module 3 questions, answered
Where can I find a free ACC 7010 Module 3 sample paper?
The purchase-to-pay modeling assignment appears above: a BPMN activity diagram, a UML class diagram, batch versus real-time processing and COSO controls.
What is the difference between an activity diagram and a class diagram?
An activity diagram shows the sequence of process steps and who performs them; a class diagram shows the data stored and how records relate.
What is three-way matching?
Checking that the supplier's invoice agrees with what was ordered and what was received before paying it.
What are the trade-offs of real-time processing?
Current data and faster detection, but dependence on system configuration and stronger change controls.
What are COSO's five internal control components?
Monitoring, control activities, risk assessment, information and communication, and the control environment beneath them all.