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Winter Blues is a company that specializes in the sales of Wedding Dresses to individuals and companies. Winter Blues year end is 30 June 2021.

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Winter Blues is a company that specializes in the sales of Wedding Dresses to individuals and companies. Winter Blues year end is 30 June 2021. The audit manager has tasked you with reviewing their computer system. Background Information The business was started in 2010 by Mirram Mulwanda as a small boutique. Over the years multiple stores were opened across Namibia. It has been Namibia's dream to grow the business and sell to all the provinces of Namibia. In 2015 the sales clerk suggested to Mirram to introduce selling via the internet through Instragram Boutique System. That way she will grow her market by reaching her customers wherever they are. Miriam tasked the IT department with the development of Instragram Boutique System in as she was not comfortable with purchasing a Computerized System. Additional Information regarding the business operations Ordering of goods is done by Miriam the order clerk using a terminal that has been allocated to her. Orders are received telephonically by Miriam. She requests the customer to provide his/her account number and checks if indeed the customer account number appears on the debtor's mastertile module Once Mirriam has validated the account number, the order details are captured into the Internal Sales Order 'ISO' module. The customer is given an order reference number and the telephone call is terminated, If the customer does not have an account number, he/she will be referred to the credit management department for approval. Fenni the credit controller creates a credit application form on the system and request all relevant supporting documentation from the customer in order to approve him her Once the customer is approved, be she is allocated a credit limit. credit tems and a computer- generated account number. A notification is automatically sent to Miriam's terminal through a *pop up' message on her screen to notify her of the new approved customer. Mirriam is then able to access the 'ISO' module and enter all the details of the order. No ISO can be made without the account number. The approved customer details such as credit terms, delivery address, banking details etc. are added onto the masterfile by Frans the Data capture. . The system master files contains two standing data files which shows; A customer file containing customer name and account number, addresses, banking details and credit limits and A price file containing the product numbers, descriptions, and selling prices of the products. Tinashe the financial manager approves all the amendments which are captured by Frans into the system. The system prints out at the end of the month a log all the amendments that took place for review by Thulani. Due to lack of proper controls on the masterfile amendments, the following problems among others were experienced; . Customers incorrectly over-charged Customers details changed without their knowledge Goods delivered at the incorrect address Required: 1.1 Explain the risks other than being hacked that a company can experience by selling online (including risks relating to the use of computers in the entity. (25 marks) 1.2 Briefly explain controls that will need to be exercised over the INPUT of transaction data into the "ISO system by Mirriam the order clerk, to ensure the validity and Accuracy of transactions.( 25 marks)

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