Big Mall Shoe Store Limited is part of a chain of shoe stores across Canada. Each store

Question:

Big Mall Shoe Store Limited is part of a chain of shoe stores across Canada. Each store has standard point-of- sale packaged systems that are used to update sales and inventory. The stores are linked to the head office server via the internet. This way, if a local store does not have an item in stock, local staff can check other locations for availability. Then, they telephone the other store to place a hold on the item for the customer.

At the store level, staff have several responsibilities. As part of helping customers, they select shoes and enter the sale (show code number; quantity; type of payment: cash, debit, or credit card). The information is entered into the point-of- sale cash register. If payment is by credit or debit card, staff must “swipe" the credit card into a separate credit card authorization box, wait for the authorization code, and type the authorization code into the point of sale terminal; the code is then printed on the customer invoice. All price over¬ rides must be approved by the store manager or assistant manager by typing a separate password into the terminal.

The customer gets two pieces of paper. From the point of sale terminal the customer receives an invoice slip which shows the Ape of shoe purchased, cost, taxes, and total. From the credit/debit card box, the slip shows simply the amount, credit/debit card details, and authorization code. If a credit card is used, a second copy is printed which must be signed by the customer.

All employees have their own passwords which they must enter before initiating a transaction (i.e., the point-of-sale terminal is used by several employees who type in their passwords and then enter a sale, return, or adjustment transaction).

REQUIRED

Identify risks of error or fraud at the local Big Mall Shoe Store. For each risk, identify a potential control that could prevent or detect the error or fraud. For each control, state whether the control is a governance control, general control, or application control. Organize your answer in three columns, as follows:

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