You have been assigned to the annual audit of Kaboom Ltd. You contacted the audit senior, Patrick Corr, and arranged a date to discuss the client and the current year’s audit.

During your meeting with Patrick, he emphasised that he wanted to take a good look at the computer department. On the eighth day of the job, Patrick received word that his immediate attention was needed on another job. He had performed most of the work on the computer department and he wanted you to complete it. He left the following working paper to help you:

Required

(a) Draw an organisation chart of the computer department.

(b) Discuss weaknesses in the Kaboom Ltd controls, and recommend improvements.

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Kaboom Ltd Computer system Prepared by: PC 23/8/X1 General background The computer department has evolved from a strictly batch entry/batch processing operation. It currently uses a mixture of batch and on-line processing methods. The department is under the supervision of Ryan Thomas who has worked in it since its inception. He reports to the chief accountant. The department is located on the second floor of the east office wing. It shares office space with the research department and the general accounting department. The machines, however, are physically separated from the other departments by glass doors. The chemical mixing department is located just below on the first floor. The ground floor houses the factory personnel department, var- ious conference rooms and other administrative offices. The computer department services head office accounting, the local factory and three other factory locations elsewhere in the country. The department recently upgraded its computer. There are three groups within the computer department, each having separate duties: 1. data entry; 2. systems analysis; and 3. programming and operations. Each group has its own supervisor who reports to the computer manager.