Question 1

For each the following situations, evaluate the segregation of duties and describe any deficiency that you found. Indicate possible error that might occur because of the inadequate segregation of duties. Recommend the additional control that should be implement by the company.

Situations:

e. Bass Pro Shops takes all customer orders over a toll-free phone number. The order taker sits at a terminal and has complete access to the customer's previous credit history and a list of inventory available for sale. The order clerk has the ability to input all the customer's requests and then generate a sales invoice and shipment with no additional supervisory review or approval.