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    Walker Books

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    merlin
    This document discusses internal control weaknesses in Walker Books' current inventory management system and proposes improvements. It identifies issues with lack of supervision and segregation of duties across departments. Specifically, one person handles all tasks in sales without checks. It recommends implementing control departments, assigning specific tasks to different departments, and restricting unauthorized access. It also notes needs for more computer units, file backups, and purchasing additional computers to replace manual procedures and prevent data loss. Finally, it mentions redesigning the computer-based system to address these weaknesses.

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    Walker Books

    Uploaded by

    merlin
    177 views9 pages
    This document discusses internal control weaknesses in Walker Books' current inventory management system and proposes improvements. It identifies issues with lack of supervision and segregation of duties across departments. Specifically, one person handles all tasks in sales without checks. It recommends implementing control departments, assigning specific tasks to different departments, and restricting unauthorized access. It also notes needs for more computer units, file backups, and purchasing additional computers to replace manual procedures and prevent data loss. Finally, it mentions redesigning the computer-based system to address these weaknesses.

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    This document discusses internal control weaknesses in Walker Books' current inventory management system and proposes improvements. It identifies issues with lack of supervision and segregation of duties across departments. Specifically, one person handles all tasks in sales without checks. It recommends implementing control departments, assigning specific tasks to different departments, and restricting unauthorized access. It also notes needs for more computer units, file backups, and purchasing additional computers to replace manual procedures and prevent data loss. Finally, it mentions redesigning the computer-based system to address these weaknesses.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    177 views9 pages

    Walker Books

    Uploaded by

    merlin
    This document discusses internal control weaknesses in Walker Books' current inventory management system and proposes improvements. It identifies issues with lack of supervision and segregation of duties across departments. Specifically, one person handles all tasks in sales without checks. It recommends implementing control departments, assigning specific tasks to different departments, and restricting unauthorized access. It also notes needs for more computer units, file backups, and purchasing additional computers to replace manual procedures and prevent data loss. Finally, it mentions redesigning the computer-based system to address these weaknesses.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 9

    Walker Books, Inc

    Antari Regita Apriyani 1510534019

    Belinda Nabila 1610533020

    Vilvi Renana 1710533034


    A. Data Flow Diagram of
    Current System.
    C. The Internal Control Weaknesses in The System
    According to The Six Categories of Physical Control
    Activities Specified in SAS78/COSO

    1.Supervision
    - Walker company must have an authorize person, known as the checker to
    assist the checking and the flow of inventories in the warehouse.
    - They must implement a controller department. The cash receipts
    department typically reports to the treasurer who has responsibility for
    financial assets.
    - Since the company encounters the delivery delays, they must have a carrier
    department so that inventories will be turned over to customer or to other
    branches as fast as possible to prevent inventory stock outs.
    2. Segregation of Duties
    - Walker Company must have tasks dispersed to different departments.
    Because it shows clearly that one department handles so many tasks. In
    sales department, the person in charge to receive order, input, check credit
    then validate it just in one person.
    - In order to maximize time and maximize the order sales, Walker Company
    must be able to see that different departments are assigned with their
    specific tasks.
    3.Assess Control
    -Walker Company's computer department must see to it the importance
    of providing more computer units
    - The organization management must implement controls that restrict un
    authorized access. No physical source documents for back-up, the
    destruction of files can leave Walker Company with inadequate inventory
    record.
    4.Inventory Control
    - Walker Company's sales department must always maintain file
    back-ups to prevent loss of sales records since they only have a
    standing alone PC work station.
    - Walker’s company must be able to purchase more computers for
    fast and more reliable documents for their sale inputs to prevent
    manual procedures since manual procedures may result to
    communication logs to employees or logs on transmitting order to
    purchasing department.
    D. System Flowchart of A Redesigned Compute
    Based System

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