1. bally is a small manufacturing company based in tampa. It is

producing hand sanitizers and is selling on credit to its customers. The controller has been

preparing aging schedules and found that the company's invoices are not being sent out in

a timely manner. The accounts receivable department has told the controller that it is not

getting information when orders are completed and shipped due to its computer system.

The computer system is slow and cannot keep pace with production. As a result, the

computer system crashes frequently. The accounts receivable department often must type

invoices when the computer system is malfunctioning, resulting in backlogs and delays in

billing. When the controller brings up the issue to the president of the company at a weekly

management meeting, the president states, "Just get the problem fixed so we can send out

the bills on time. What is the next item on the agenda?"

a) Required: From a standpoint of systems planning and feasibility analysis, how would

you as a consultant (hired by the controller of Bally to "fix the problem") advise

the controller and management to proceed to remedy this systems problem? [ 10

Marks]

2. The following is a description of the payroll procedures for Automotive , a small company

that customizes vans and buses according to customers' specifications:

The payroll department prepares a time card for each employee on the payroll every

Monday and leaves the time cards in a box near the entrance to the factory. Workers

fill in their time daily.

A payroll clerk picks up the time cards the following Monday when dropping off

the new time cards. The payroll clerk then inputs the number of hours for each

employee into the computer.

The payroll application calculates gross pay, deductions, and net pay, and prints a

payroll register.

Payroll checks are prepared manually by the payroll clerk and signed by the chief

accountant, who takes them to the factory supervisor. The factory supervisor

distributes the checks. The chief accountant prepares the monthly reconciliation of

the payroll bank accounts.

Required: List five recommendations for improving Automotive' internal controls over

its payroll function. [10 Marks]