Holmes Institute HI5019: Rainbow Illusion Case Study Analysis

This report analyzes the Rainbow Illusion case study, focusing on its sales transactions, control systems, and financial reporting. The study identifies the strengths of the internal control system, including proper authorization, adequate documentation, and timely record-keeping. It also highlights problems avoided by the system and two situational pressures that could lead to fraud, such as inadequate segregation of duties and manual recording of sales. Furthermore, the report outlines the advantages of a distributed computer system over a centralized one for the company. The analysis provides a comprehensive overview of the company's internal controls, potential vulnerabilities, and the rationale behind its system choices.