WeEducation provides computer enrichment lessons to kindergarten age children in various child care centres. However, they do not sell directly to the students. Rather, their sales team would directly reach out to the different child care centres to actively sell their enrichment program as a package. If the child care centre is interested, they have to undergo the customer application and review process. Process: The child care centre manager would be provided with a new customer form and a credit application form. After the manager filled those up, the manager would submit the forms to the sales executive. The sales executive will do the first level check to ensure all the information are correctly filled up. 

Then the sales executive will send the credit application form to the finance department. The sales executive will enter the details of the new customer form into WeEducation’s customer excel spreadsheet and then shreds the new customer form. After the finance department receives the credit application form, the finance clerk will review the document and manually check the new customer name against the printed copy of the Ministry of Education list of accredited child care centres. If the new customer is not in that list, the finance clerk has to send the application form to his manager for approval. If the new customer is in that list, the finance clerk would update the finance’s credit database and enter the standard credit limit for the customer. The form is then filed in the customer folder. 

The finance manager would review cases that are not been listed in the Ministry of Education list and clarify with the child care centre via email or telephone. If the finance manager is satisfied, the manager will approve the child care centre’s credit application and send the form back with the credit amount for the finance clerk to create the customer and enter the credit limit into the credit database. If the manager is not satisfied, then the customer will be rejected and the finance manager will send the application form back to the finance clerk for filing in the rejected folder.

(a) Analyse the process described in the passage above and apply and prepare the flowchart for the process. State all assumptions made.

(b) Analyse and identify three (3) potential weaknesses in the internal controls of WeEducation’s customer application and review process. Describe threats or problems that arise from each weakness and also provide solution(s) to deal with each respective weakness. (Do not only state general control weaknesses. You have to discuss the control weaknesses using information from the above description).

Answer rating: 100% (QA)

Assumptions 1 WeEducation has a sales team that actively sells their enrichment program to different ... View the full answer