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 SAS 78/COSO control model.
d. Prepare a system flowchart of a redesigned computer-based system that resolves the control weaknesses you identified. Explain your solution.

Walker Books, Inc., is currently one of the largest book distributors in the United States. Established in 1981 in Palo Alto, California, Walker Books was originally a side project of founder and current president Curtis Walker, who at the time worked for a law firm. At the end of the first year of business, Walker Books had grossed only $20,000 in sales. Seeing potential, however, Curtis Walker made the decision to quit the law firm and concentrate fully on his bookstore. As the years passed, sales increased, more employees were hired, and the business facilities expanded. Although still at the original location in Palo Alto, California, the company now distributes books to each of the 50 states, has 145 employees, and sees sales approaching $105,000,000 per year.

  • CreatedNovember 28, 2012
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