In the evaluation of sales transaction processing and control design in the following information:(a)identify two or three potential weaknesses. breifly explain the potential mistatement, recommended correction and possible weakness of all two or three potential weaknesses identified. ORDER APPROVAL In Marco Appliance Inc., Every few minutes (immediately if things are slow), one of the salesclerks hand-carries the pending requisitions to Dakota Amalia, the controller. The secretary presents them to Ms. Amalia who approves them either immediately, based on first-hand knowledge of the customer's credit record, or after reviewing the customer's account record on her PC. Ms. Amalia initials the requisition to indicate approval of the sale and enters an approval for the requisition in the accounting system. When Ms. Amalia enters her approval code, the system creates and prints three copies of a sales order form; assigns a sequential number to it; and moves the sales order record in the computer to the open sales order file. Copies one and two of the sales order are sent to the warehouse where they are held until they can be filled. The approval copy of the requisition form is attached to copy three of the sales order and forwarded to the bookkeeper, Cooper Teal. These forms are filed in the open sales order (physical) file for later matching with each delivery advice. The computer system notifies the sales clerk who originated the requisition when Ms. Amalia approves or disapproves the requisition. If the customer has requested an update on the order, the sales clerks call back the customer to let them know their orders have been approved and that delivery to their driver has been authorized. If Ms. Amalia disapproves the requisition, the computer system reverses the perpetual inventory entry for the pending sale and removes the record from the temporary customer order file. Sales clerks then call customers Ms. Amalia did not approve to inform them of the situation. If they dispute the denial of credit, they are transferred to Ms. Amalia’ telephone extension.
In the evaluation of sales transaction processing and control design in the following information:(a)identify two or three potential weaknesses. breifly explain the potential mistatement, recommended correction and possible weakness of all two or three potential weaknesses identified.
ORDER APPROVAL
In Marco Appliance Inc., Every few minutes (immediately if things are slow), one of the salesclerks hand-carries the pending requisitions to Dakota Amalia, the controller. The secretary presents them to Ms. Amalia who approves them either immediately, based on first-hand knowledge of the customer's credit record, or after reviewing the customer's account record on her PC. Ms. Amalia initials the requisition to indicate approval of the sale and enters an approval for the requisition in the accounting system.
When Ms. Amalia enters her approval code, the system creates and prints three copies of a sales order form; assigns a sequential number to it; and moves the sales order record in the computer to the open sales order file. Copies one and two of the sales order are sent to the warehouse where they are held until they can be filled. The approval copy of the requisition form is attached to copy three of the sales order and forwarded to the bookkeeper, Cooper Teal. These forms are filed in the open sales order (physical) file for later matching with each delivery advice.
The computer system notifies the sales clerk who originated the requisition when Ms. Amalia approves or disapproves the requisition. If the customer has requested an update on the order, the sales clerks call back the customer to let them know their orders have been approved and that delivery to their driver has been authorized.
If Ms. Amalia disapproves the requisition, the computer system reverses the perpetual inventory entry for the pending sale and removes the record from the temporary customer order file. Sales clerks then call customers Ms. Amalia did not approve to inform them of the situation. If they dispute the denial of credit, they are transferred to Ms. Amalia’ telephone extension.
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