QUESTION 2 (25 MARKS) You are currently employed at an audit firm called Smile Auditors. You are the Audit Senior on an exciting client called Thandi Wines. Thandi Wines has a February yearend. They are situated on a farm in Stellenbosch. On the farm, they have two restaurants, a deli, and a section where wine can be tasted. Located at the back of the farm is a hotel with 12 rooms available. 1: Hotel Reservations All hotel reservations have to be done online. Thandi Wines does not accept walk-ins or reservations via phone calls and emails. Potential customers are expected to browse the web page, which allows them to search the availability and costs of rooms of their choice. A customer who identifies an available room is able to book the room by providing his or her name, surname, ID or passport number, cell phone number, email address, and method of payment. Once a customer confirms a booking on the website, he/she has 48 hours to pay for the booking. Payment may be made either online by way of a credit card transaction (via a secure connection) or by an electronic funds transfer (EFT) when making the booking. Proof of payment must be faxed or emailed to Thandi Wines's offices. The room fee is recognised immediately as revenue at the time when payment is made by a customer. The bookings database of Thandi Wines is updated immediately and the room is reserved. A booking confirmation is issued automatically (via e-mail) to the customer shortly after proof of payment is received. At the end of each day, the customer file is automatically is updated to the general ledger. 2: Control Weaknesses Thandi Wines has a computerised (automated) real-time booking system. Mr. Damon, the Sales Manager of the hotel, asked you to advise him on improvements to deal with the following general control weaknesses: 1. Mrs. Erasmus, the Sales Officer of the hotel, is unsure of how to update the room tariffs on the automated (computerised) real-time booking system. 2. The central processing unit and related equipment of the booking system are situated in a secure part of the building. During the previous week, the equipment was damaged when heavy rain came down through a window that had been left open overnight. Investigations revealed that the operator had opened the window during the day to improve ventilation. 3. Access to the computer room after working hours is restricted by a steel gate, and an electronic surveillance system is activated by the last person to leave the room at the end of the day. 4. Damage to the data storage device resulted in data processing being disrupted for a week because nobody knew how to resolve the problem. 5. Furthermore, a fair amount of backed-up data was lost. Restructuring of the lost data was carried out from the booking confirmations printed in Mr. Damon's office. Required 2.1 Discuss the specific application controls that is currently not, but SHOULD be in place in relation to the accuracy and completeness of the internet reservation system as per section 1: Hotel Reservations. (15 marks)