To help you understand a process of customer order, Sarah described: The client sends in a customer order which is received by a clerk - Katie Dodd. Katie enters the customer name into the computer and the computer retrieves the customer address from the customer data file and checks the account receivable data file to ensure the new order does not exceed the credit limit. This data is displayed on the computer screen. The item numbers for the products that the customer wishes to buy are keyed in, with the computer retrieving the product description from the equipment data file. The complete order details are displayed on the computer screen and Katie checks that the details match those on the customer order. If they agree then the confirm order button is clicked and the data saved in the customer order data file. The paper customer order is filed by customer name. [Note: Katie is allowed to approve and set credit limit up to $10,000 per new customer. With existing customers, Katie is permitted to extend the credit limit up to $3,000]. When the computer gets the confirmation of the order from Katie, it emails a copy of the customer order to the warehouse supervisor Tom Carter. Tom prints the order and gets the goods listed on the order and packs them securely for sending to the customer. Once packed, Tom goes to the computer and enters the customer order number. The computer retrieves the full details from the customer order and displays on Toms computer screen. Tom then enters his name and the date of packing. The computer then saves these full details in the invoices datafile and prints a copy of the invoice and the customer insurance policy. Tom then attaches the invoice and the customer insurance policy to the goods and they are sent to the customer at 4pm each day. At 6pm each day, once the trading hours for the business are complete, the computer then accesses the invoice data file and takes the data for all invoices created on that day and updates the sales data file, the accounts receivable data file and the inventory data file. The paper copy of the customer order is signed by Tom who packed the goods and filed by date.

Question 3: Fraud After you have identified threats and consequences, you have provided Sarah with some suggestions for improvement. Your analysis has made Sarah and James worried. She has asked you to give her a report on what the MK should do to ensure the integrity of its employees. Required: Write a report to Sarah and James to explain the risk of employees frauds and what the MK should do to ensure the integrity of its employees. (300 words) (10 marks)

Question 4: Systems development life cycle 6 Due to Covid19 outbreak, on 25 March 2020 New Zealand government announced level 4 lockdown. All businesses must cease operation during the lockdown. Only essential businesses may remain open during the Alert Level 4. MK had to close. Although MK has been opened since the country moved to lockdown level 2, MKs revenue has dropped significantly. Sarah and James are considering implementing a new accounting system, which will automate sales processing, cash receipts, accounts payable, and cash disbursement procedures.James and Sarah have decided to let several employees go after the system is implemented.

Question 4.1: Required: How would you advise James and Sarah to communicate this decision to the affected employees? To the entire staff? (6 marks)

Question 4.2: James sent an announcement letter to all the staff. In the letter, Jamessaid: I have contracted with Spartan Consulting Group to do the needs analysis, system selection, and design work. The development process will be unobtrusive to user departments because Spartan knows what needs to be done. They will work independently, in the background, and will not disrupt anyone with time consuming interviews, surveys, and questionnaires. This promises to be an efficient process that will produce a system that will be appreciated by all users. Required: Write to James providing five issues in response to his letter above (6 marks)