The vice president of production has requested that top management have the information systems division investigate the feasibility of a computer system to improve the scheduling of production. Though her production managers are extremely competent, she is convinced that because of the complexity of the decision, they do not always make the best judgments.

One of the system designers from the information systems division starts the process of entry by requesting that the production managers participate in a series of workshops that will examine the strengths and weaknesses of the total scheduling system. Even though attendance at the workshop is voluntary, most production managers still attend. After six workshops over a period of four months, the system designer reports to the vice president of production that the production managers believe a computer system will solve many of their problems. Having received this information, the vice president of production is convinced the project should go ahead.

Because top management is uncertain about the eventual success of the system, however, they come to you as the internal audit manager to ask your advice. They value your independence. Your company has been experiencing cash-flow difficulties, and top management is reluctant to embark upon any high-risk systems development projects.

Required. Prepare a brief report advising top management on how they should proceed.