Accounting Information System Documentation
ARAMEX Insurance Company begins processing casualty claims when the claims department receives a notice of loss from a claimant. The claims department prepares and sends the claimant four copies of a proof-of-Ioss form on w hich the claimant must detail the cause, amount, and other aspects of the loss. The claims department also initiates a record of the claim, which is sent w ith the notice of loss to the data processing department, w here it is filed by claim number.
The claimant must fill out the proof-of-loss forms w ith an adjuster’s assistance. The adjuster must concur w ith the claimant on the estimated amount of loss. The claimant and adjuster each keep one copy of the proof-of-loss form. The adjustor files his copy numerically. The adjustor sends the first two copies to the claims department. Separately, the adjuster submits a report to the claims department, confirming the estimates on the claimant’s proof-of-loss form.
The claims department authorizes a payment to the claimant, forwards a copy of the proof-of-loss form to data processing, and files the original proof-of-loss form and the adjuster’s report alphabetically. The data processing department prepares payment checks and mails them to the customers, files the proof-of-loss form w ith the claim record, and prepares a list of cash disbursements, which it transmits to the accounting department where it is reviewed.
1. Draw a context diagram
2. Draw a detailed Data Flow Diagram ( Level 0 DFD)
3. Prepare the table of entities and activities
4. Discuss (Point by Point) the threats faced by ARAMEX during the process and subsequent controls to be in place to overcome the identified treats