A1 Client: Eastern Fabrics (Pty) Ltd Year-end: 29 February 2020 Prepared by: Yourself Date: 24 February 2020 Reviewed by: Audit manager Date: 28 February 2020 Pre-engagement activities: Changes in the entity-computer system Purpose: The purpose of this working paper is to gain and understanding of the changes that occurred in the client's IT environment during the past year. Audit procedures performed Enquiries from the Chief Executive Officer (CEO), Mr Patel, and IT manager, Mr le Roux, regarding significant changes which have occurred in the business of Eastern Fabrics in the financial year under review Results of work performed The following significant developments were identified from our enquiries: Management of Eastern Fabrics implemented a new system consisting of new hardware and software to manage the sales and receipts of Eastern Fabrics. Mr Patel noted that the previous system they used did not accommodate all of the functions necessary for the business, especially on the wholesale division Mr le Roux provided us with a site visit of the new hardware and terminals which comprised of the following: A new server room (the server room is where all customer data is stored on the masterfile such as customer details, purchased history, credit limits etc.) A terminal located in the server room to access the data. This terminal can also access the trade terminals with "view only" rights. In other words, this terminal can see what is happening on the trade terminals but cannot edit or change information on the trade terminal screen. A second terminal is located in the credit manager's office (Ms Mathebe) to create new customers, edit or update customer information and other ad hoc capabilities to maintain the sales and receipts division of the business. o Workstations are still located at the retail store, with new software. The terminals are located towards the exit of the store; however, any salesperson can access, by means of a username and password, any of the terminals i.e. there is no one dedicated terminal to an individual salesperson. The new software installed at each workstation ensures proper username and password controls are adhered to Before any customer detail changes can be made to the debtor's masterfile, the following protocols have been put in place: The customer contacts the debtors clerk telephonically requesting an amendment to his/her Customer information The debtors clerk requesting the information to be changed, must type out a memorandum on Microsoft Word requesting an amendment to customer information. The debtors clerk requesting the amendment is identified by typing his/her name on the memorandum Acknowledgement of receiving the memorandum, from the debtors clerk, is confirmed telephonically by the credit manager, Ms Mathebe. Ms Mathebe then grants access to the debtors clerk by giving a temporary access pin to the user requesting the information to update the information initially requested by the user. SUB TOTAL 4 x 1 TOT 4 1 REQUIRED: 2.1 With reference to the "working paper A1": Describe the physical access controls that should have been implemented by Eastern Fabrics to restrict access to their server room. You can exclude any physical controls relating to visitors from outside the company to the server room. 2.2 With reference to the "working paper A1": Identify five (5) weaknesses pertaining to the manual masterfile amendment controls executed for the updating of customer information, as evident from the information provided above. For each weakness identified, provide a recommendation which will improve the system. Your answer should be provided in the following format: Identify weakness Recommendation (1 mark each) (1 mark each) Communication mark - presentation 5 x 1 5 x 1 1 x 1 A1 Client: Eastern Fabrics (Pty) Ltd Year-end: 29 February 2020 Prepared by: Yourself Date: 24 February 2020 Reviewed by: Audit manager Date: 28 February 2020 Pre-engagement activities: Changes in the entity-computer system Purpose: The purpose of this working paper is to gain and understanding of the changes that occurred in the client's IT environment during the past year. Audit procedures performed Enquiries from the Chief Executive Officer (CEO), Mr Patel, and IT manager, Mr le Roux, regarding significant changes which have occurred in the business of Eastern Fabrics in the financial year under review Results of work performed The following significant developments were identified from our enquiries: Management of Eastern Fabrics implemented a new system consisting of new hardware and software to manage the sales and receipts of Eastern Fabrics. Mr Patel noted that the previous system they used did not accommodate all of the functions necessary for the business, especially on the wholesale division Mr le Roux provided us with a site visit of the new hardware and terminals which comprised of the following: A new server room (the server room is where all customer data is stored on the masterfile such as customer details, purchased history, credit limits etc.) A terminal located in the server room to access the data. This terminal can also access the trade terminals with "view only" rights. In other words, this terminal can see what is happening on the trade terminals but cannot edit or change information on the trade terminal screen. A second terminal is located in the credit manager's office (Ms Mathebe) to create new customers, edit or update customer information and other ad hoc capabilities to maintain the sales and receipts division of the business. o Workstations are still located at the retail store, with new software. The terminals are located towards the exit of the store; however, any salesperson can access, by means of a username and password, any of the terminals i.e. there is no one dedicated terminal to an individual salesperson. The new software installed at each workstation ensures proper username and password controls are adhered to Before any customer detail changes can be made to the debtor's masterfile, the following protocols have been put in place: The customer contacts the debtors clerk telephonically requesting an amendment to his/her Customer information The debtors clerk requesting the information to be changed, must type out a memorandum on Microsoft Word requesting an amendment to customer information. The debtors clerk requesting the amendment is identified by typing his/her name on the memorandum Acknowledgement of receiving the memorandum, from the debtors clerk, is confirmed telephonically by the credit manager, Ms Mathebe. Ms Mathebe then grants access to the debtors clerk by giving a temporary access pin to the user requesting the information to update the information initially requested by the user. SUB TOTAL 4 x 1 TOT 4 1 REQUIRED: 2.1 With reference to the "working paper A1": Describe the physical access controls that should have been implemented by Eastern Fabrics to restrict access to their server room. You can exclude any physical controls relating to visitors from outside the company to the server room. 2.2 With reference to the "working paper A1": Identify five (5) weaknesses pertaining to the manual masterfile amendment controls executed for the updating of customer information, as evident from the information provided above. For each weakness identified, provide a recommendation which will improve the system. Your answer should be provided in the following format: Identify weakness Recommendation (1 mark each) (1 mark each) Communication mark - presentation 5 x 1 5 x 1 1 x 1