DEL PILAR, MICO A.

BSACT 4

INTERNAL AUDITING
ASSIGNMENT

MICROSOFT CORPORATION

COMPANY PROFILE:
Microsoft was founded in 1975. Our mission is to enable people and businesses throughout the
world to realize their full potential by creating technology that transforms the way people work,
play, and communicate. We develop and market software, services, and hardware that deliver
new opportunities, greater convenience, and enhanced value to people's lives. We do business
worldwide and have offices in more than 100 countries.
We generate revenue by developing, licensing, and supporting a wide range of software products
and services, by designing and selling hardware, and by delivering relevant online advertising to
a global customer audience. In addition to selling individual products and services, we offer
suites of products and services.
Our products include operating systems for personal computers ("PCs"), servers, phones, and
other intelligent devices; server applications for distributed computing environments;
productivity applications; business solution applications; desktop and server management tools;
software development tools; video games; and online advertising. We also design and sell
hardware including the Xbox 360 gaming and entertainment console, Kinect for Xbox 360, Xbox
360 accessories, and Microsoft PC hardware products.
We provide consulting and product and solution support services, and we train and certify
computer system integrators and developers. We also offer cloud-based solutions that provide
customers with software, services and content over the Internet by way of shared computing
resources located in centralized data centers. Cloud revenue is earned primarily from usage fees
and advertising.

COMPANY PROCESSES:
Sales Process
The Company distributes its products primarily through OEM licenses, corporate licenses, and
retail packaged products. OEM channel revenues are license fees from original equipment

manufacturers. Microsoft has three major geographic sales and marketing organizations: the
United States and Canada, Europe, and elsewhere in the world (Other International). Sales of
corporate licenses and packaged products in these channels are primarily to distributors and
resellers
1. Demand Generation develop campaigns; select target accounts an contracts; hold
events.
2. Prospect validate prospect; perform pre-call research and identify potential pains of
targeted key players; conduct calls to key players and/ or potential sponsor to generate
interest; confirm verifiable outcome and update partner engagement manager.
3. Qualify conduct lead qualification call to sponsor; complete opportunity assessment;
send sponsor letter; confirm verifiable outcome and update PEM.
4. Develop identify, meet and build relationship with power; confirm that power agrees to
explore; identify buying process; determine resource requirements; develop evaluation
plan; propose evaluation plan to power; validate and confirm verifiable outcome.

5. Solution execute and confirm verifiable outcome and confirm opportunity assessment.
6. Proof Finalize evaluation plan; review proposal; confirm verifiable outcome and
confirm opportunity assessment
7. Close develop, finalize and confirm final contracts
8. Deploy conduct post-close follow-up; identify additional opportunities, confirm
9. Support - transition support ownership; review support plan; implement and monitor
plan progress
Security Process
Trustworthy Computing focuses on creating and delivering secure, private, and reliable
computing experiences based on sound business practices. Our goal is a safer, more trusted
Internet.
The security of our customers' computers and networks is a top priority. We are committed to
building software and services that help protect our customers and the industry. Our approach to
security includes both technological and social aspects, and we strive to ensure that information
and data are safe and confidential. Drawing on industry best practices, we make investments to
increase the security of our technologies and to provide guidance and training to help minimize
the impact of malicious software.
Three core elements guide the work and focus of security at Microsoft:
1. Fundamentals:
We focus on security fundamentals, including making online activities, software, and
services safer. As part of Trustworthy Computing, Microsoft trains its developers, testers,
and program managers to build more secure software code, following an approach known
as the Security Development Lifecycle (SDL). Since 2003, Microsoft has also been
working with national governments around the world on building and deploying more
secure IT infrastructure and services in the Government Security Program.
We also focus on enhancing the processes and tools used in updating customer software.
Microsoft works to make the updating process more manageable by making it
predictable, improving the quality of updates, and investing in effective tools and product
enhancements to make it easier.
2. Threat and Vulnerability Mitigation:
Microsoft strives to deliver a comprehensive and integrated portfolio of software and
technologies that suit the needs of all customers by providing the following benefits:

Central visibility and control of risk

Reduced exposure to threats through leading technologies and an in-depth approach
to defense
Seamless integration with existing IT systems and within the security portfolio

Our approach also helps reduce an organization's exposure to attacks through best-ofbreed threat protection, detection, and removal. Data that is collected using various
feedback mechanisms combined with global research and collaboration help promote fast
discovery of protection against new threats.
3. Identity and Access Control:
Tackling this challenging aspect of security is another important layer of Microsoft's indepth approach to defense. It has three parts:

Trustworthy identity:Focusing on innovation and integration to help ensure that

users are trustworthy.
Access policy management:Managing policy that dictates what resources each user
can access.
Information protection:Helping protect information permanently, wherever it is
stored.

Cash Management Process

Microsoft manages its cash flows using their own constructed application which is Microsoft
Dynamics GP
HR Process

Microsoft decided to realign its corporate strategy to meet the evolving needs of their customers
and implemented cultural changes that required rethinking HR strategies such as recruiting,
retention, training and development, and performance management. This realignment ensured
that the organization maintained a strong link between corporate strategy and HR strategies.

However, the employee experience remained complicated and disjointed. To be a strategic

enabler for the companys transformation, HR had to be reimagined.
Inventory Process
Receipts
Here, you receive items on the basis of
source documents, plan cross-docks,
and post your item receipts, when your
warehouse is set up to require
warehouse receipt processing with
warehouse documents. Under certain
conditions, you can also create put-away
instructions for zones and bins. You can
view the cross-dock opportunities
available at any given time and decide
how many items you want to crossdock.
You use warehouse receipts to post the
items you receive at the warehouse to
the item ledger. When items arrive, you
retrieve the lines of the source document
that triggered their receipt, and fill in the
quantities of the items you have
received. If you have bins, you also
record the receiving bin where you have
placed the items. When you post the
receipt, you either create a put-away instruction or make the receipt lines available in the putaway worksheet, depending on how the warehouse is set up.
Shipments
With warehouse shipments, you prepare shipments requested by source documents when your
warehouse is set up to require shipment processing with warehouse documents. If your location
requires pick processing, you can create pick instructions shipment by shipment, or you can
release shipment lines to the pick worksheet where you can plan a more efficient pick round for a
number of shipments. When employees have picked all the items, you can finish preparing the
shipment and then post it.
Put-aways and Picks
These two features contain the instructions that warehouse employees must follow when moving
items around the warehouse. The warehouse put-aways are used when the location is set up to
require both warehouse receipt and warehouse put-away processing, and warehouse picks are

used when the location is set up to require both warehouse picking and warehouse shipment
processing.
When your location is set up to use bins, the instructions suggest the bin from which you should
take an item and the bin in which to put it. If you are using directed put-away and pick, this
suggestion is based on calculations the program makes using bin ranking or put-away templates,
depending on the activity. If you are not using directed put-away and pick, the suggestion is
based on the item's default bins. You can always modify the instructions the program has
suggested.
If your warehouse is set up for directed put-away and pick, you can use an automatic data
capture system to facilitate putting away and picking items within the warehouse.
Pick Worksheets
If your location is set up to require both pick and shipment processing, you can plan and create
pick instructions using the pick worksheet. The program retrieves lines that come from released
documents (including production orders) that need to have items from the warehouse. Only lines
that are not yet on pick instructions can be retrieved in the worksheet. When you have assembled
and sorted a number of lines, you can create pick instructions from the worksheet.
Put-away Worksheets
If your location is set up to require both put-away and receipt processing, you can plan and create
a put-away instruction for several receipts in this worksheet. You can sort the receipt lines that
you have retrieved in several different ways and thereby create instructions that reduce the time
and effort warehouse employees use in putting items away. On the location card, the Use PutAway Worksheet field allows the warehouse to choose whether the program during posting of
receipts will create put-away instructions or make the lines available in the put-away worksheet.
Cross-Docking
The cross-docking functionality, which is available if your location requires warehouse receipt
and put-away processing, allows you to quickly see the program's suggestion for the quantity to
cross-dock in the warehouse receipt. You can view, in a separate window, a list of the individual
source document lines that formed the basis for the cross-dock calculation. You can reduce or
increase the quantity to cross-dock before you post the receipt, or you can do this in the put-away
instruction. Cross-docked items are not set aside for any specific outbound source document, but
you can make an ordinary reservation using a short-cut in the Cross-Dock Opportunity window.
The program places cross-docked items in one of the cross-dock bins, which are the first bins
that the program considers when picking items for shipment. Warehouses with bins also have
information about cross-docked items on each shipment line: when you add a line to a shipment,
the program calculates how many items are available in the cross-dock bin. If you are concerned

about a back order that is waiting for one item, this information helps you to quickly see if the
shipment can be completed.
Movements
Movements contain the instructions that warehouse employees must follow when moving items
around the warehouse. The movement worksheet and movement documents are available when
your location is set up to use directed put-away and pick.
If your location is set up for directed put-away and pick, you can use an automatic data capture
system to facilitate moving items within the warehouse.
Movement Worksheets
If you are using directed put-away and pick, you can use movement worksheets to calculate bin
replenishment and review the replenishment lines suggested by the program before creating a
movement instruction. You can also plan individual movements from bin to bin and then create a
movement instruction. Unlike the other worksheets, this worksheet contains fields for both the
zone and bin in which an item is currently located and the zone and bin to which it will be
moved.
Internal Put-aways and Internal Picks
With internal put-aways and picks, you plan and create instructions for putting away and picking
items without a source document. You can use these for many special purposes, including
picking unplanned consumption for production and returning items not used in production to the
warehouse, placing items to be used in a sales demonstration in a non-pick type bin that is used
for this purpose, or placing representative items in a quality control bin.
In the internal put-away, if you are using bins, you enter the bin from which you want items to be
taken, and create the put-away instruction. If you are using directed put-away and pick, the
program then suggests, according to your warehouse's put-away rules, the bin in which you
should place the items. In the internal pick, you enter the bin in which you want items to be
placed and create a pick instruction. If you are using directed put-away and pick, when you
create a pick from the internal pick, the program suggests the bin from which you should take the
items, according to warehouse picking rules.
Accounting Process
Microsoft is a technology leader focused on building best-in-class platforms and productivity
services for a mobile-first, cloud-first world. We strive to empower every person and every
organization on the planet to achieve more. We develop and market software, services, and
devices that deliver new opportunities, greater convenience, and enhanced value to peoples
lives.

We generate revenue by developing, licensing, and supporting a wide range of software products,
by offering an array of services, including cloud-based services to consumers and businesses, by
designing, manufacturing, and selling devices that integrate with our cloud-based services, and
by delivering relevant online advertising to a global audience. Our most significant expenses are
related to compensating employees, designing, manufacturing, marketing, and selling our
products and services, datacenter costs in support of our cloud-based services, and income taxes.

Production Process

1. Funding
writing proposals to get a grant from public or private sources
responding to "Request for Proposals" (RFP)
joining competitions
obtaining contracts through personal contacts and/or referrals
creating a prototype and then finding a company interested in developing it.
2. Planning - Once a contract is secured, a series of negotiations begins between the
developer and the client.
It is very important to discuss the ownership of the content, the project schedule,
and payment during the negotiation phase.
The negotiation phase clearly defines the roles of a client and a developer from
initial contact.
Sometimes, the developer will receive the content from the client who owns the
copyright of the materials and other times the developer has to generate new
materials from scratch.
The developer and the client need to agree on the completion dates or milestones
for various phases to ensure the feasibility of the intended amount of work. The
budget is discussed at this point.

The ultimate goal of a contract is to help maintain a favorable working

relationship between the client and the developer and to agree on roles and
division of responsibilities.
Based upon what the client wants, the development team begins to brainstorm,
outline the objectives, and decide on the presentation style, the delivery platform,
and the approach to turn the content into an interactive multimedia product.
Often, these ideas are implemented in a prototype, which is reviewed by the client
to see if it satisfies its needs.
3. Designing - Based upon the client's feedback of the prototype, various specification
documents are developed which provide detailed information on content, design,
interface, and functions of the product. Terms such as design document, functional
specifications, and content script are used to refer to different specification documents
depending on the information and format provided by the document.
During the design phase, the objectives, presentation style, delivery platform, and
the overall approach are finalized.
Details such as the design of each screen, the type of navigation to be used, and
the interactive characteristics of the interface are worked out.
Flowcharts and storyboards are created to reflect these specifications.
Detailed timelines are created and major milestones are established for the critical
phases of the project.
The work is then distributed among various roles such as designers, programmers,
graphic artists, animators, videographers, audiographers, and permission
specialists.
4. Producing -During the production phase instructional designers, graphic artists,
animators, videographers, audiographers, and permission specialists begin to develop
scripts, artwork, animation, video, audio, and interface. The production phase will run
smoothly if the project manager has carefully selected the team members, distributed
responsibilities, and created realistic milestones in the production schedule. Programmers
begin to generate codes to put all the pieces together. Group discussions are more
common and frequent during the planning and designing phases; whereas, in the
production phase different roles will focus on their production tasks and meet only with
the lead instructional designer and project manager to evaluate what has been created.
5. Testing - Unlike some traditional instructional design models in which evaluation occurs
at the end of the process, the phase of testing is usually continuous and repetitive.
Formative evaluation occurs at every phase and multiple times. The importance of
having such continuous evaluation as a key factor for ensuring the quality of the product
is often stresses. Evaluation takes on different forms.
Some forms used by developers include informal critiquing by members within
and across the teams within the company, on-going evaluation by the clients, and
using focus groups and surveys to get feedback from the end users.
Depending on the nature of the product and the type of audience, different forms
are used. It is just invaluable to get feedback. Constant evaluation within the
company and with the client occurs more often than with the end users.
Some companies use a four-step evaluation to measure major milestones for
quality assurance: prototype, beta, alpha, and final testing.

Some clients tend to hire developers who know how to test for instructional value
and who tend to build testing into their budget in response to a RFP.
6. Marketing - Marketing and support is important to the success of a product. The survival
of a company depends on the product reaching the audience.
The elements of marketing include researching the industry, the audience, and the
competition.
Marketing also includes the responsibility for determining the pricing and
coordinating the advertising and public relations for the product.
Practices for marketing and distributing the products vary from company to
company. Most companies are not concerned with marketing because their clients
usually hire them to develop a product. When the product is completed, they
deliver the product to their clients, who are responsible for marketing and
distributing the products. In such cases, the need for such a product is presumably
established by the clients and the distribution channels for the product have been
determined
Purchasing and Payment Process

Approval Process and Segregation of Responsibilities

The principles of approval and segregation of responsibilities provides an organization with a
control to reduce the risk of fraud. The requirement for the approval of a purchase requisition
prevents inappropriate purchases being made and the separation of responsibilities to
unconnected parts of the buying organization helps to reduce the risk of collusion.
Audit Trail
A formal purchasing process that records a predefined set of processes allows the path of events
to be examined retrospectively to identify errors or deliberate breaches of policy.
Accounting
All commercial organizations have a legal responsibility to account for their finances including
for the goods and services that they procure. It is important therefore that proper records are
maintained e.g. to record dates, prices and department details as well as to categorize goods and

services appropriately to distinguish between capital goods and expenses for example. This can
have a crucial bearing on how the finances of the organisation are described which in turn can
have a tax and profitability impact.
Automation
A standard process allows for automation and the use of technology which reduces the cost of the
process.
Payroll Process
In Microsofts payroll process each employees are using PAYSTUB: is a centralized, intranetbased application that Microsoft employees use to view their earnings statements online.

Accounts receivable Process

The Accounts Receivable list and maintenance pages enable you to receive payments from
clients for invoices that have balances due.
Prerequisites
To work with accounts receivable, you must have Edit/View Accounts Receivable
privileges. More information: Work with user accounts and staff contacts.
Microsoft Dynamics Marketing must have at least one 'active' Accounts Receivable
general ledger account for the Accounts Receivable page to operate.
The Default Accounts Receivable Account
Microsoft Dynamics Marketing has a 'default' general ledger account for Accounts Receivable
named 'Accounts Receivable.' This general ledger account needs to be activated if you want to
use it.

Activate the default accounts receivable account

Add other accounts receivable accounts
View accounts receivable
Receive and post payments
Payment discounts
Create a payment discount
How payment credits are posted to the general ledger
Delete a payment credit
Underpayments
Client overpayments
Create a credit memo
Apply existing credits/credit memos
How client overpayments are posted

Void or reverse overpayments

Payment history

Financial notice
Financial and general ledger accounts are designed for marketing budget management only.
Financial features are restricted to the limits stated in the Security and Financial Disclaimer.
Microsoft Dynamics Marketing is not designed to comply with country/region-specific laws,
regulations, or common business practices.

COMPANY PRACTICES:
Business Practices
Trustworthy Computing focuses on creating and delivering secure, private, and reliable
computing experiences based on sound business practices. Our goal is a safer, more trusted
Internet.
Our Commitment: Integrity in All Our Interactions
Microsoft is committed to deepening the trust of customers, partners, governments, and
communities. We strive to meet or exceed legal, regulatory, and ethical responsibilities
worldwide and to hire and reward employees who share our values, work with integrity, and
adhere to our Standards of Business Conduct.
The Microsoft Commitment to Global Readiness
Microsoft is committed to helping people worldwide benefit from technology while striving to
uphold local language and cultural identity. Global Readiness focuses on providing tools and
resources to enable products and services that are locally relevant and empower people across a
broad range of cultures, languages, and levels of economic development. Microsoft provides a
number of tools, resources, and solutions to help developers create world-ready products,
services, and content.
As a global company, Microsoft respects and complies with requirements for language,
geography, and culture. The Global Readiness team helps ensure that all customers, regardless of
their cultures, customs, beliefs, languages, or locations, experience Microsoft devices, services,
and communications as globally appropriate, and locally relevant.

Our commitment aligns to the following areas:

Customers find that Microsoft products are easy to use and reflect their linguistic needs
and cultural expectations by providing products and services in local languages.

Developers worldwide have resources to build world-ready services and applications.

TheLanguage Toolboxprovides links to a variety of Microsoft resources that are available
for the developer community.

Microsoft products and services are locally relevant, globally appropriate, and compliant
with company and external requirements.

Investments in Technology
Microsoft products and services development includes a vigorous, multi-level review process to
help ensure that text, symbols, images, and graphics are evaluated for worldwide suitability. We
use a combination of proprietary tools, guidelines, and standards to find potentially sensitive
content. This process occurs throughout the product development cycle to identify content that
may be inappropriate or unacceptable in some locales.
Our long-term investment in geopolitical content quality helps the company bring the best
possible products and services to market. This investment is one way to help ensure customers
have a better, more trustworthy experience with Microsoft products and services.
Microsoft Cartographic Policy Statement
Microsoft recognizes that diverse and sometimes conflicting views of geography exist in the
world. We seek to remain as neutral as possible while providing accurate and informative
mapping products.
In dealing with disputed areas, our cartographers strive for detailed and neutral depictions and to
try present differing points of view where appropriate. In areas of cartographic uncertainty:

Microsoft follows the decisions of the International Court of Justice on geographic

disputes.

In the absence of a legal agreement or judgment, we weigh the practices and opinions of
United Nations bodies, the International Organization for Standardization, regional
political organizations, and independent academic and research organizations to
determine if a significant international consensus exists.

When there is no legal judgment or significant international consensus regarding a

particular geographic sovereignty or border dispute between two nations, Microsoft will
depict the area as disputed.

Online Safety at Microsoft

With its longstanding commitment to online safety, Microsoft takes a comprehensive approach. It
includes the development of protective technologies and features in its products, strong
governance policies, responsible monitoring of our online services, guidance and education for
families and children, and partnerships to help combat online crime.
These efforts align directly with Microsofts overall commitment to promoting greater trust
online and to building products and services that enhance consumer safety. Read more...
Standards of Business Conduct
The Standards of Business Conduct are an extension of Microsoft values and reflect our
continued commitment to ethical business practices and compliance with regulatory and legal
requirements.

We build and maintain the trust and respect of our customers, consumers, partners, and
shareholders

We are responsible stewards in the use, protection, and management of Microsoft assets.

We promote a diverse, cooperative, and productive work environment.

We are responsible, caring members of the global community.

Telecommunications
Cloud service providers face the challenge of developing, launching, supporting, and monetizing
new services, while supporting exponential growth requirements and delighting customers with
personalized services, support, and experiences. Microsoft offers high-performance platforms
and solutions that let you engage your customers, empower your employees, optimize your
operations, and transform your products.
Health
Health needs are infinite, but your resources arent. Tap into the power and intelligence of the
Microsoft Cloud to better engage your patients, empower your care teams, optimize your clinical
and operational effectiveness, and transform the care continuum for your organization.
Process Manufacturing & Resources
Microsoft offers a secure, scalable, and flexible platform to maximize manufacturing
efficiencies, ensure customer loyalty, increase employee productivity, develop new products and
services, and achieve operational excellence. Our integrated products and services, alongside a
comprehensive partner ecosystem, help process manufacturing companies through a journey of
digital transformation.
Accounts Payable at Microsoft

If you are doing business with a Microsoft Subsidiary and need assistance with accounts payable,
you can contact the subsidiarys Accounts Payable Help Desk team directly.
Power & Utilities
Microsoft enables power and utilities companies to drive transformation through digital
technology. With Microsoft, power and utilities get the world-class partner they want, with the
modern productivity platform they needalong with the global reach to be where they are and
the security to protect their assets, operations, data, and people.
Hospitality & Travel
Hospitality and travel organizations are embracing digital transformation to thrive in todays
competitive environment. Microsoft solutions and its intelligent platform enable hospitality and
travel organizations to combine the best of digital and in-store to deliver personal, seamless, and
differentiated guest experiences by empowering people and capturing insights to drive growth.
Microsoft Procurement
Microsoft is committed to creating diversity in our supplier base that reflects the global diversity
of our customers. Committed to helping others realize their potentialthrough our products,
procurement, and suppliers
The Microsoft mission is very inclusive: it encompasses all people and every area of our
enterprise: Empower every person and every organization on the planet to achieve more
The suppliers who join the Microsoft Supplier Program and our diverse supplier base provide all
types of quality goods and services. But thats not all; they also share our core values and can
assist us in fulfilling our mission.
Microsoft takes all compliance concerns very seriously. If supplier companies or external staff
have concerns about ethics or compliance with any of Microsofts supplier policies or
requirements, please reach out to our Business Conduct Hotline.

SOURCES:
https://www.microsoft.com/investor/reports/ar12/financial-review/businessdescription/index.html
https://www.microsoft.com/en-us/dynamics/marketing-customer-center/accounts-receivable.aspx
https://enterprise.microsoft.com/en-us/industries
https://www.microsoft.com/dynamics/dynamicsrms/retail-management-system.aspx?
pageID=2#section3
https://msdn.microsoft.com/en-us/library/ms942233(v=cs.70).aspx
https://www.microsoft.com/en-us/twc/security.aspx