Strategic Information System for Rainbow Illusion Company

Running head: STRATEGIC INFORMATION SYSTEM
STRATEGIC INFORMATION SYSTEM
Name of the Student
Name of the University
Author Note

1STRATEGIC INFORMATION SYSTEM
Executive Summary
The report deals with the case study of the Rainbow Illusion Company. The rainbow Illusion
is an organization that deals with the readymade clothes for young females. They have a very
big business but procedures of cash transactions are very old and uses four parts sales
invoice. The report deals with the processes, risks and internal controls of its revenue cycle.
The report focuses on the six strengths of the Rainbow Illusion Company in order to control
the transactions of its sales. The report discusses about the problems that have been avoided
by the company. The report focuses on the two situations of pressure that would increase the
likelihood of fraud. Lastly, the report concludes with the discussion about the distributed
systems.

2STRATEGIC INFORMATION SYSTEM
Table of Contents
Introduction:...............................................................................................................................3
Discussions.................................................................................................................................3
Business Scenario...................................................................................................................3
Six Strength in Rainbow Illusion System..............................................................................4
Problems of Rainbow Illusion................................................................................................4
Likelihood of fraud................................................................................................................4
Installing a Distributed System rather than a Centralized System.........................................5
Conclusion..................................................................................................................................6
References..................................................................................................................................7

3STRATEGIC INFORMATION SYSTEM
Introduction:
Rainbow Illusion is a retail chain that has 30 stores in Victoria and New South Wales.
It sells readymade clothes for young females. Each of the stores of the company has a
manager and an assistant manager. The cashier and the sales personnel are young people and
work as per time. They are paid hourly wages and some commissions that are based on the
volume of the sales.
The report is based on the processes, risks and the internal controls for its cycle of
revenue that will be given to the chief executive officer of the Rainbow Illusion Company.
The report focuses on the six strengths that are present in the system of Rainbow Illusion in
order to control the transactions of its sales. The report discusses about the problems that are
avoided by the company. The report also discusses about the two situational pressures that
would increase the likelihood of fraud. Last but not the least, the report discusses about the
reasons about the companies that choose a distributed computer system over a centralized
one.
Discussions
Business Scenario
Rainbow Illusion is a retail chain that has 30 stores in Victoria and New South Wales.
The company sells readymade clothes for the young females. Each of the stores of the
Rainbow Illusion Company has a manager and an assistant manager and both are paid with
salary. The cashier and the sales personnel are young people working part time and are paid
with hourly wage. The Company uses cash registers that are unsophisticated having four sales
invoices in order to record the transactions.