RAINBOW ILLUSION'S REVENUE CYCLE.

Running head: RAINBOW ILLUSION'S REVENUE CYCLE
RAINBOW ILLUSION'S REVENUE CYCLE
Name of the Student
Name of the University
Author note

RAINBOW ILLUSION'S REVENUE CYCLE
Table of Contents
Introduction: 2
Discussions: 3
Six strengths in Rainbow Illusion’s system for sales transaction control: 3
Problem(s) Rainbow Illusion has avoided by incorporating the strength in the
system for controlling sales transactions. 6
Situational pressure in the company which might increase fraud: 7
Adaptation of Distributed computer system in place of centralized computer
system: 8
Conclusion: 9
References: 11

RAINBOW ILLUSION'S REVENUE CYCLE
Introduction:
The report on the case study of the Rainbow illusion garments retail store aims in
evaluating the process, risks and internal controls that can be implied to gain the revenue
cycle. The Rainbow Illusion is a retail chain store located in the New South Wales and
Victoria with 30 store retail chain concentrated over the region. The organization deals with
the sale of the ready to wear garments or clothes for the young females. The scenario of the
organization or the retail store can be described by their infrastructure which contains one full
time managers of and assistant manager with a paid salary. The organization generally
consists of young people working in the system. There are cashiers and sales personal who
are working on a part time based job and are paid in an hourly system and the commission is
paid on the volume of the sales the employees have achieved.
The company is fully dependent on the primitive methods of transaction control and
uses the unsophisticated cash registers for the purpose of the recording of transaction in all
type of payment methods. The manual recording is the basic kind of payment method for all
kind of transaction method that is followed by the organization across all the stores situated
in the country. The sales person, assistant manager and the manger follows a set of series for
the maintenance of the transactions mad the revenue record in a disciplined way.
The report discusses and evaluates the six strengths in the organization system for the
purpose of controlling the sales transactions. The report also evaluates the problem that has
been mitigated by the incorporation of the strength within their system for controlling the
transactions on the sales for the company. The report also focuses on the situational pressure
within the Rainbow Illusions that boosts the rate of and likelihood of fraud that may happen
in the organization (Abadi et al., 2016). This raises the questions on why the type of the

RAINBOW ILLUSION'S REVENUE CYCLE
organizations needs to implement a distributed computer system rather that the centralized
system which is currently followed by the organization.
Discussions:
Six strengths in Rainbow Illusion’s system for sales transaction control:
The six identified strengths are as follows:
1. All the 30 stores in the retail chain located in the New South Wales and
Victoria of the Rainbow Illusions make use of the similar system. The similar
system around all the stores helps in recording the transactions done in all the
stores under the same organization for the purpose of calculation of the sales
transaction done every day (Chen et al., 2015).
The use of the similar and same type of system or the technology for
the purpose of calculation of the sales transaction helps to provide more
transparency and visibility to the authorities and to the management sector of
the organization. The company is fully controlled by the centralized system
and has taken over all the stores across the country on the basis of only one
unit accountability (Ghosh, 2014). The manger is able to look over and mange
all the purchasing transactions of the country where the fraudulent activities
have been restricted as the visibility of the day to day transactions are clear to
the authorities.
The visibility not only allows the managers and the heads of the
company to get the visibility on the transactions sections, they are also able to
look over and audit the level or the quality of the stocks that are available the
mangers are able to track the record of the materials that are needed to be