Caleb Westerfield is the owner of CW Sports, a consignment shop for used sporting goods. Caleb accepts consigned goods and offersThe Web ordering system provides the advantages of: costsavings through lower marketing, employee, and paperwork costs; shorter sales cycles due to reduced time to place an order, increased accuracy and reliability of the order data; and increased potential market for the company’s products. Accordingly, Romano’s Web ordering system reduces the risks of misplacing an order, filling an order incorrectly, losing a sale due to a long wait time, and recording erroneous data due to errors in manual paperwork processing. Although some of these advantages and risk reductions are also realized through the company’s centralized phone ordering system, that phone system still involves manual processes to input customer orders, so there remain some costs and risks associated with employees, accuracy, and wait times. them for sale to the general public. Caleb rents business space, including a retail store where the consigned goods are displayed and sold, with adjoining office space where an Internet site is maintained and other administrative functions are performed. The Internet site includes photos and descriptions of items available for sale worldwide. If the goods sell, Caleb’s consignment fee is 40 percent of the sale price, and 60 percent is remitted to the consignor. Shipping costs on electronic orders are paid by the customers.

Required:

Identify internal control considerations for the following:

a. The e‐commerce portion of the business.

b. The retail portion of the business, assuming that the accounting systems are mostly manual and handled by Caleb and his wife.