Strategic Information Systems for Business and Enterprise

Strategic Information Systems
for Business and Enterprise

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Discussing the statement..............................................................................................................3
Potential internal control weakness in Sales Order Processing Procedures and Cash Receipts
Procedures....................................................................................................................................5
Potential risks identified..............................................................................................................7
Possible Types of frauds..............................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Strategic Information System is basically a business information system which has
appropriate features in it. This deals with the platform embedded with technology for integrating
and coordinating the business processes on the foundation which is robust. This involves vision,
setting goals along with appropriate steps to reach those goals. RCE limited is a whole seller
which deals in the camping and rafting of the equipments and it is based in Queensland. The
report will shed light on discussing the investment which company makes in separating the
departments instead of making them as one and this will consider the revenue cycle of RCE. This
will be followed by mentioning the weaknesses, risks and frauds of Sales Order Processing
procedure and Cash receipt procedure and the ways to mitigate them.
Discussing the statement
The companies like RCE invest more in establishing the separate departments for
shipping, warehousing and inventory control. The company considers this as the additional costs
but necessary for the enhanced benefits of control over inventory. This statement will be
analysed by considering the revenue cycle of RCE. The company RCE limited has separate
department for the purpose of warehousing as the main function of this department is offering
appropriate and sufficient space for stocking the merchandise with full safety from the elements.
This function needs to be performed separately as compared to other functions. The shipping
department must be separate as it focuses on the movement of inventory which can be outgoing
as well as incoming (Ritchi and et.al., 2020). The small companies might have combined
department for all these functions as they as one warehouse for more than one function. The
larger firms like RCE have separate departments and warehouses for handling these tasks. The
major reason behind separating larger firms is keeping space which is free of obstruction at the
place of loading dock.
The warehouse in RCE Company is responsible for maintaining the inventory control’s
inventory section. The major two approaches which are applicable for the control of inventory
under the situations of emergency are reorder cycle policy and reorder level policy. When the
supply is matched with the demand which is created by customers along with building a supply
chain management which has both adaptableness and elasticity is considered as inventory
management task. In the world of today’s business, it is must to separate all the functions of the
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