1. Warehouse should not update the inventory subsidiary and General ledger control accounts. Multilevel security controls are needed to provide a separation of duties.

Risk: Clerk could steal inventory, adjust the subsidiary ledger, and adjust the GL control account to cover the theft.

2. Warehouse and AR Clerk (separate 2 & 3 exposures) should not update the general ledger.

Risk: The ability to reconciliation the AR Sub Ledger and the AR Control account is diminished when both are updated by the same person.

4. Billing and AR are combined. Risk: This structure will mask discrepancies between what was billed and what was

recorded as a sale. 5. Supervision is needed in the mailroom.

Risk: Employees who open the mail have access to both cash and the remittance advice. This increases the risk of mailroom fraud through skimming.

6. The cash receipts clerk has access to the assets (cash) and is responsible for updating the general ledger.

Risk: The clerk could steal cash and adjust the cash account to cover the theft.

Required: RE-design To-Be O2C (order to cash) system flow chart