Control Weaknesses in System Flowchart

Accounting
Information
System

Question 4........................................................................................................................................2
Describe five control weaknesses depicted in the system flowchart...........................................2
Question 5........................................................................................................................................2
Discuss both the arguments.........................................................................................................2
As a student of accounting information systems, how would you respond to Peter...................3
Question 6........................................................................................................................................3
Discuss two procedures that can be applied to find Mr Peter's fraud..........................................3
Discuss indicators of personal fraud that can reveal the possibility of such fraud......................3
REFERENCES................................................................................................................................5
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Question 4
Describe five control weaknesses depicted in the system flowchart
 The record of transactions in the Sales Journal must not be produced by the Sales Clerk
prior to the shipment of products (B Romney, 2018). It was meant to be done by
after Billing. The credit review has still not been carried out.
 Before the delivery of goods and no acknowledgement of the shipment and the amount
delivered, the billing department shall invoice the customer. The billing process must be
facilitated by notification of the shipment.
 The billing, AR, inventory management, cash receipts and journal vouchers should not be
continued to receive by the General Ledger Data Processing Department. Rather, General
Ledger changes GL accounts by misappropriation of source records.
 The collection of cash receipts and the management of AR subsidiary documents should
not be handled by Receivable Accounts.
 Warehouse Clerk, who is accountable for overseeing the physical inventory, does not
perform other functions, such as managing the inventory records of the subsidiary.
Question 5
Discuss both the arguments
Many payroll tasks are linked to HR problems, so the payroll and human resources
departments need to manage common functions (Hariyati, Tjahjadi and Soewarno, 2019). This
includes hiring, wage raises, incentive bonuses, benefit reductions, vacation time and dismissal
of workers. The HRM must be attentive to the time spent on payroll processing because, as an
advocate of employee relationships, it will face problems directly if cheques are not processed
accurately and on time. The payroll and HR divisions are often stripped of sensitive employee
records, like financial information, social security numbers and personal information. The two
agencies must work hard to achieve that this data does not come under the hands of unauthorised
persons or corporations.
Background check of employees is essential for the organization to identify their past
history and also ensure that, the provided information was correct or not. Details such as the
history of drug violations or DUIs may also be sought by the agency. After all, they want to
make sure they are working with a responsible person. Bear in mind that, if someone has tried to
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