1. Identify at least three weaknesses in Newton Hardware's revenue cycle. Explain the resulting threat, and suggest methods to correct the weaknesses.

2. Identify ways to use IT to streamline Newton's revenue cycle activities. Describe also the control procedures required in the new system.

3. Draw a figure of the new IT based system with your suggestions to correct the present weaknesses, including its control procedures.

Activity Performed (sequential, left-to-right across all rows) Employee Sales Clerk . Customer. Prepa" +\ SoleimCredit //--o o- Issue Credit Sale Credit No Limit? Order Order Warehouse Clerk Pick & Pack Order Shipping Clerk Ship to Credit Manager Approve/ Cr Deposit Accounts-Remi-onces Receivoble Accountant Accounts- in Bank Mail Invoice to Customer Stamp For Receive & Reconcile Bank Cash Receive Remitance Deposit from Clerk Customer FIGURE 20 Newton Hardware Company Revenue Cycle Procedures