You are the chief internal auditor for Corbault Corporation, a large decentralized, diversified, manufacturing organization. As a result of concerns about controls over hardware and software purchases throughout the corporation, the controller asks you to investigate a major subsidiary of the corporation. Your investigation reveals the subsidiary has purchased over \(\$ 1\) million worth of microcomputer hardware and software and that many managers are actively engaged in developing their own systems. The hardware and software purchases have escaped detection by top management as individual purchases have involved only small expenditures. In total, however, the expenditures are considered to be substantial. Most purchases have occurred during the last three years.

The controller's initial reaction is to prohibit any further purchases of microcomputer hardware and software throughout the corporation. She is concerned about the large expenditures. More importantly, however, she is concerned about the ways in which user-developed systems are being employed in the corporation and their potential impact on operations, especially if the systems are poorly designed. Nevertheless, before taking the matter further, she asks your advice on what should be done to exercise effective control over hardware and software purchases and end-user developed systems in the corporation.
Required. Write a brief report to the controller outlining possible strategies to address her concerns. Your report should list the relative advantages and disadvantages of each strategy you identify.