In March 2020, Sentosa Resort and Golf Course Hotel had migrated to a new billings system. The internal auditors noted that the sales control account in the Income Statement is different by RM1,020,788.80 from the detailed schedule. According to the system analyst, this is due to the delay in the year end closing of transactions between the general ledger system and the room charges, restaurant and coffee house billing and golf merchandise shops sales.

The Chief Audit Executive (CAE) is so concerned to tally the schedule with the Income Statement total sales for the year end June 2020. However, the system analyst was confident that the system did not process any erroneous transactions.

The internal audit manager suggested that a staff need to be assigned to reconcile the differences. However, another approach of the system as suggested by the system analyst which is supposed to be more efficient and less time consuming, is to create a reconciling program that will identify those transactions that caused the differences.

Nevertheless, the Audit Committee was dissatisfied with an expected additional RM1.5 million investment in the new reconciliation system to rectify the issues. A reprimand letter was issued to the system analyst to be more thoroughly in reviewing the capability of any future Information Technology (IT) system before seeking the boards approval.

Required: Advise four (4) immediate attentions in dealing with the conflicts arise in the case above.

(10 marks)