a Identify the physical control weaknesses depicted in the f

a. Identify the physical control weaknesses depicted in the flowchart for Problem 2.

b. Describe the IT controls that should be in place in this system.

PROBLEM 2: INTERNAL CONTROLS AND FLOwCHART ANALYSIS Sales Department Billing Department Data Processing Department Warehouse Order Sales Adds prices, bills customer and posts to Sales Journal, Sales Sales Order Inventory Sub Ledger Picks, ships goods Updates Inventory Sub and Inventory Updates AR Sub, AR Control, CR Journal, Cash, CGS AR Sub Ledger Sales Order Sales Sales Journal Sales Cash Receipts Ledger

Solution

a. The given flowchart depicts the internal processes associated with different departments for a sales order processing. The physical control weaknesses depicted in the given flowchart are,

b. The company should implement proper IT control measures to improve the process. For this, they can take several steps as mentioned below,