Sys-Port is an information systems implementation and support company, helping clients with the implementation of relevant information systems for their specific business needs. Lillian Bayo, the CEO of Sys-Port, have concerns she wants to address regarding Sys-Port's aims to meet clients' business needs. In some instances, the information strategy of clients' businesses is either not developed or not documented, where it is up to Sys-Port to consult with these clients to help and establish an information strategy. In most instances, clients resist having the required consultations with Sys-Port to firstly be informed about what an information strategy entails and why it is essential to have an information strategy. Required: Lillian has instructed you, a newly qualified management accounting graduate, to "SysPort client information strategy" concept document, that contain the following information: a) Describe what an information strategy is and how it fits into the corporate strategy.(5 marks) b) Indicate and describe what the components of an information strategy are.Provide a short description of each component, and what it entails. (9 marks) c) Describe what the benefits of having such an information strategy would hold for clients.(6 marks)

QUESTION 1 (25 MARKS) Movers (Pty) Ltd is a freight forwarding and logistics company situated close to the Cape Town International Airport in Cape Town. Movers has about R100 million revenue per annum. Movers has various customers, ranging from large companies to once - off customers. Movers has an extensive sales team which is responsible to attract and retain customers. They have demanding targets to meet that require them to win new customers and increase the size of individual orders. The sales team has considerable autonomy over the amount of discount they allow as a deduction from the approved price list. The approved price list is the only sales prices uploaded in the system. Once a sales employee meets with a customer, the discounts are negotiated. The sales employee notes the negotiated discount on the physical order form. Each sales employee is paid a commission based on the sales for the month after discounts have been taken into account. The Sales Manager performs this calculation each month, which he sends to payroll to be paid on a monthly basis. There are 20 employees in the Accounts Receivable Department, which is managed by the Accounts Receivable manager. Management relies on the IT systems in place to process and manage invoices and debtor's balances. The Accounts Receivable employees work in teams that are customer specific rather than single function responsibilities. The teams' responsibilities include, invoicing, data entry to customer accounts and payments on the IT system as well as debt collecting. Invoices are created by the Accounts Receivable Staff based on a phone call or email received from the Sales Department. There are no customer reconciliations performed. The Accounts Receivable manager has also stopped the issuing of customers statements as he feels it is not sustainable. The performance of the Accounts Receivable Department is measured against the following targets: MAC4867/A03/2020 4 Keeping bad debt write offs below 2% of sales turnover. Actual bad debt write-offs over the last two years have averaged 3.5%. Achieving average days sales outstanding (DSO) of 45. Actual DSOs over the past year have ranged between 56 and 62 days at the month ends. Ensuring that credit notes are no greater than 1% of sales value. At present aggregate credit notes across the company amount to three times this level. The Internal Audit Department is currently only performing audits on the performance targets of the various departments in the company. Required a) Recommend, with reasons, the controls Movers should implement in the Accounts Receivable Department in order to improve the current internal controls and meet their performance targets. (15) b) Discuss how Internal Audit should contribute to the effectiveness of internal control in Movers. (6) c) Recommend audit procedures Internal Audit can perform on commission paid out to sales employees (4)