Lourdes works at the manufacturing company General Grains, Inc., where she works as an inventory control clerk. One of her tasks is to place orders for the raw materials necessary for manufacturing. Therefore, she periodically checks inventory levels from a computer in her office at the warehouse. Once she identifies the items she needs to replenish, she reviews the supplier list, chooses one, and creates a purchase order from her computer, adding a new record to the purchase order file. In addition, she prints a copy of the purchase order and mails it to the supplier. As the last step, Ella Lourdes emails the accounts payable officer and the receptionist a link that gives them access to the purchase order from their respective computer terminals. All Company computers are networked to a central accounting system, so all stakeholders have access to the same information.

When the merchandise arrives at the company for delivery, the instruction is to deliver it to the receiving area. The receiving clerk prints a copy of the original purchase order and checks it against the packing slip to ensure that the requested merchandise and quantity are being received correctly. The receptionist creates a merchandise receipt report from her computer terminal that she sends to the
accounts payable officer. Another copy is sent to Lourdes so she can update her inventory records. Subsequently, the accounts payable officer receives a printed invoice from the supplier. The officer compares the received invoice with the digital purchase order generated by the inventory control officer and the receptionist's report. Also, using her computer, she creates a record in the accounts payable subsidiary and records the liability in the purchase journal. As part of his responsibilities, the reports payable officer reviews the accounts file and pays the invoices after receiving authorization from a position of the manager of the Accounting area. Finally, the officer generates a check for the amount due and, using the officer's computer, removes the liability from the accounts payable subsidiary and records the cash disbursement.

 

Part II: Answer the following questions about the theory (case) presented:

1. Identifies physical internal control weaknesses in the system.
2. Provide at least three (3) recommendations for the controls that should exist in this accounting information system. Focus your response on the controls that must be incorporated into the digital processes from the time the order is placed until it is disbursed the pay. Include in your answer the recommended controls and how they can be applied.

Could you please include references?