System Configuration The computer processing portion of a sales order system is represented by the flowchart shown below.

Answer the following questions.

a. What type of data processing system is this? Explain, and be specific.

b. The auditor suggests that this system can be greatly simplified by changing to direct access files. Explain the major operational changes that would occur in the system if this were done.

c. The auditor warns of control implications from this change that must be considered.
Explain the nature of the control implications.

d. Sketch a flowchart (the computerized portion only) of the proposed new system. Use correct symbols and label the diagram.

Transcribed Image Text:

Sort Sales Order File by Customer Account Number Keystroke Sales Order File Edit Edited File Batch Totals Batch Totals OD OD Sort Program Batch Totals Sorted File Shipping Notice Customer AR File AR Update and Billing Program Batch Totals Customer's Invoice New AR File Sales Order Sort Run Batch Totals Sorted So File Inventory Master File General Ledger Accts Update Batch Program Totals New Inventory New GL File File End of Day Process Sort Run Sorted Batch Totals Gen Ledger Update