Major systems revamp for Smiths gift stores group Computer Correspondent IMPLEMENTING a totally new system for any company is risky, but as competition increases and average disposable income reduces, the need for effective computer support becomes a necessity. Mr Clive Smith, owner of the Smiths group of gift stores realized this and embarked upon a major systems reorganization. In conjunction with Computerworld, developers of QuickTill point-of-sale software, the group is now linked using Beltel to automatically produce daily figures before the next days trading. The branches can achieve tight stock control and merchandising management whilst head office can access up to the minute information on sales, profitability, staff productivity and banking. I now have complete control over stock and in-store operations and can update branches with new products and price changes automatically, said Mr Smith. I can even access this information via my home computer over breakfast, if I want to! Each branch automatically posts transaction data via Beltel to an electronic mailbox. This is collected the next morning by the head office computer which updates the central stock and debtors files. The heart of the system is a stock distribution system which provides detailed information regarding stock holdings and sales enquires at the press of a button. This was all achieved within 48 hour across the eight branches and head office. What I perceived as a total nightmare turned out to be relatively simple undertaking, he said. All credit to my staff and Computer-world for what was a thoroughly planned and coordinated effort. I can now look forward to the busy Christmas period in the knowledge that I now have full control over my business as a whole.

PART A (24 marks) YOU ARE REQUIRED TO: Answer the following questions: i. How does the company ensure that no unauthorized persons access its information over breakfast? (6) ii. On which controls could the company rely to ensure that the central inventory and accounts receivable file updates are valid, accurate and complete? (10) iii. What controls would the company have implemented to ensure that the system was developed to meet its requirements? (8)

PART B (16 marks) Assuming that the Smiths group offers a telesales facility as part of a Christmas promotion whereby customers can phone toll-free and order items from a pre-printed catalogue. YOU ARE REQUIRED TO: i. Identify the internal control objectives for the telesales department. ii. Describe the possible control techniques to achieve the objectives listed in Part B i.