Question

a. Create a data flow diagram of the current system.
b. Create a system flowchart of the existing system.
c. Analyze the internal control weaknesses in the system. Model your response according to the six categories of physical control activities specified in the SAS 78/COSO control model.
d. Prepare a system flowchart of a redesigned computer-based system that resolves the control weaknesses that you identified. Explain your solution.

ABE Plumbing, Inc., opened its doors in 1979 as a wholesale supplier of plumbing equipment, tools, and parts to hardware stores, home-improvement centers, and professional plumbers in the Allentown-Bethlehem Easton metropolitan area. Over the years they have expanded their operations to serve customers across the nation and now employ over 200 people as technical representatives, buyers, warehouse workers, and sales and office staff. Most recently ABE has experienced fierce competition from the large online discount stores such as Harbor Freight and Northern Supply. In addition, the company is suffering from operational inefficiencies related to its archaic information system. ABE’s revenue cycle procedures are described in the following paragraphs.



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  • CreatedNovember 28, 2012
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