You are appointed as the auditor of ABC Ltd., which recently installed a computerized barcode system to record goods received, sales and inventory quantities. The company is a retailer of electrical product. When the goods are received, the receiving department: . Either reads the barcode on the box containing the product or inputs the barcode number manually Manually inputs the number of items received (e.g. a box may contain 200 videotapes). The quantity of items received is added to the quantity of inventory recorded on the computer. When goods are sold to a customer, the barcode of the product is either read or input manually and the computer produces the sales invoice using the selling price of the product as recorded on the computer's standing data file. The quantity of items sold is deducted from the inventory quantity recorded on the computer. Periodically, the inventory is counted, and these counts are compared with those on the computer. The inventory quantities on the computers are amended when significant differences are found. The system allows; Details of new products and the selling prices of products to be added or amended Inventory quantities to be amended from differences found at the inventory count Special prices to be charged to customers (e.g where the product is damaged or discontinued) The main products of the company sells are: Slow moving products, such as televisions, video recorders, video cameras and audit equipment Fast-moving, low value products, such as batteries, video tapes and audio tapes. Required: 1. a) Describe the edit checks that should be incorporated into the computer system to ensure that details of goods received are correctly entered. (b) Suggest how often inventory should be test counted. (c) Describe procedures the company should carry out to ensure the inventory accuracy. d) Describe the controls used to ensure prices of the products on the computer file and on the products in the store are correct. You are appointed as the auditor of ABC Ltd., which recently installed a computerized barcode system to record goods received, sales and inventory quantities. The company is a retailer of electrical product. When the goods are received, the receiving department: . Either reads the barcode on the box containing the product or inputs the barcode number manually Manually inputs the number of items received (e.g. a box may contain 200 videotapes). The quantity of items received is added to the quantity of inventory recorded on the computer. When goods are sold to a customer, the barcode of the product is either read or input manually and the computer produces the sales invoice using the selling price of the product as recorded on the computer's standing data file. The quantity of items sold is deducted from the inventory quantity recorded on the computer. Periodically, the inventory is counted, and these counts are compared with those on the computer. The inventory quantities on the computers are amended when significant differences are found. The system allows; Details of new products and the selling prices of products to be added or amended Inventory quantities to be amended from differences found at the inventory count Special prices to be charged to customers (e.g where the product is damaged or discontinued) The main products of the company sells are: Slow moving products, such as televisions, video recorders, video cameras and audit equipment Fast-moving, low value products, such as batteries, video tapes and audio tapes. Required: 1. a) Describe the edit checks that should be incorporated into the computer system to ensure that details of goods received are correctly entered. (b) Suggest how often inventory should be test counted. (c) Describe procedures the company should carry out to ensure the inventory accuracy. d) Describe the controls used to ensure prices of the products on the computer file and on the products in the store are correct