Bopeep is a local company that manufactures and distributes educational toys to schools that cater to...

 

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Bopeep is a local company that manufactures and distributes educational toys to schools that cater to special needs children. The toys are manufactured as well as stored in Bopeep's workshop. All finished products are bar-coded. For the most part, Bopeep's management requires that the stock of their popular products be maintained to ensure immediate delivery when ordered. Other products, including custom products, are manufactured on a just-in-time basis. Bopeep maintains a perpetual inventory. Currently, all special needs schools within Bopeep's delivery capacity are already its clients, and there is no scope in the near future to add any new schools as customers. Bopeep receives orders via e-mail, telephone, and their website. Once a customer places an order, the admin officer records its details on a physical order form. The admin officer uses the bar code of the items to identify the ordered products. The information on the physical order forms is entered into a computerized system at the end of each business day. The first task of the admin officer every morning is to print out the orders captured on the previous day and send them to the workshop. Any staff member that is free at the time the forms are delivered to the workshop can start collating orders by ticking the items off on each form. Once an order has been collated, the staff member responsible for packing will then pack the order and manually label it with the school's delivery address. A network administrator, who is in charge of the computing equipment used at Bopeep, backs up their files every day. On Fridays, she creates two copies of the backed up data and takes one of them home for safekeeping. The admin officer sometimes stands in for the network administrator and uses the network administrator's computer to create the backups. If this need comes up on a Friday, the admin officer will take the one of the two backup copies home. Of late, the stock levels of Bopeep's popular products have almost always been below their required levels even though their manufacturing is a continuous process. For this reason, the management suspects that this could be a case of inventory theft. Required a. Identify the major control weaknesses in Bopeep's sales order entry and shipping procedures. For each weakness you identify, suggest a method to correct that weakness. Your solution must be specific-identify which specific employees should do what. Assume that no new employees can be hired. b. Describe the IT control procedures that should exist in order to protect Bopeep from loss, alteration, or unauthorized disclosure of data. Bopeep is a local company that manufactures and distributes educational toys to schools that cater to special needs children. The toys are manufactured as well as stored in Bopeep's workshop. All finished products are bar-coded. For the most part, Bopeep's management requires that the stock of their popular products be maintained to ensure immediate delivery when ordered. Other products, including custom products, are manufactured on a just-in-time basis. Bopeep maintains a perpetual inventory. Currently, all special needs schools within Bopeep's delivery capacity are already its clients, and there is no scope in the near future to add any new schools as customers. Bopeep receives orders via e-mail, telephone, and their website. Once a customer places an order, the admin officer records its details on a physical order form. The admin officer uses the bar code of the items to identify the ordered products. The information on the physical order forms is entered into a computerized system at the end of each business day. The first task of the admin officer every morning is to print out the orders captured on the previous day and send them to the workshop. Any staff member that is free at the time the forms are delivered to the workshop can start collating orders by ticking the items off on each form. Once an order has been collated, the staff member responsible for packing will then pack the order and manually label it with the school's delivery address. A network administrator, who is in charge of the computing equipment used at Bopeep, backs up their files every day. On Fridays, she creates two copies of the backed up data and takes one of them home for safekeeping. The admin officer sometimes stands in for the network administrator and uses the network administrator's computer to create the backups. If this need comes up on a Friday, the admin officer will take the one of the two backup copies home. Of late, the stock levels of Bopeep's popular products have almost always been below their required levels even though their manufacturing is a continuous process. For this reason, the management suspects that this could be a case of inventory theft. Required a. Identify the major control weaknesses in Bopeep's sales order entry and shipping procedures. For each weakness you identify, suggest a method to correct that weakness. Your solution must be specific-identify which specific employees should do what. Assume that no new employees can be hired. b. Describe the IT control procedures that should exist in order to protect Bopeep from loss, alteration, or unauthorized disclosure of data.

Answer rating: 100% (QA)

a One major control weakness in Bopeeps sales order entry and shipping procedures is that the orders are recorded on physical forms and manually enter... View the full answer