DURAPLAST COMPANY LTD.

a) A DATA FLOW DIAGRAM OF THE CURRENT SYSTEM.

Invoice 1
Changes
Sub File
Customer
File Bill
Customer Closed Customer
Order Invoice
Item Invoice File
Prepare Quantity
Order Customer Open/ Closed
Order
Sales order

Open Order Update:

GL
Item Accounts
Pick Packed
Goods
Item and GL
Quantity Files
Close
Stock Release 1
Sales Oder

Inventory
Sub File
BOL STOCK
Stock Release 2 Release
Ship Dept
Goods File

BOL
Carrier

b) A system flowchart of the existing system.

Sales Dept Warehouse Data Processing Shipping Department

B
Print A D
Customer
Hard
Copy
Sales Stock
Order
Customer Revenue
System
Order
Stock
Release
Stock
Release Prepare
BOL
Customer And Ship
Prepare
Sales
Order
Pick Items Open/ Closed
from SO
Shelves BOL
A

Open/ Closed BOL

SO
Close Sales B
Stock
Order
Release
Accounting
Stock
Receipts
Release Customer
Stock
Release GL
Stock Release
Updates
Inventory BOL
Customer
File
Billing Department

Stock
Release

Invoice

Invoice

Customer
 c). Analyze the physical internal control weakness in the system.

I. The System Flow chart failed to perform a credit check on the Sales order.

II. The Clerk in charge of the Warehouse has custody of the assets and is not required to post the inventory records

III. The Sales clerk closed the open sales order because the previous sales order stored to the merchandise have been transported

IV. In addition, the Clerk in the Shipping Department failed to combine the stock release through the use of the original order. This led to the creation of incorrect amount of goods being

transported.

V. The customer is liable to pay for the goods as soon as the merchandise are transported. The Payment statement should be generated by issuing a shipping notice. An alternative is that, the

customer bill is printed from the closed sales order which was ready prior to merchandise were transported.

d) Prepare a system flowchart of a redesigned computer-based system that resolves the control weaknesses that you identified. Explain your solution.

1. PROCESSING CONTROL

 Provide backup for events to guard digital files

 Provide error messages to indicate an account in equality

 Provide a password control to limit the right to use to record files and programs
2. OUTPUT CONTROL

 Safety above allocation of journal vouchers and account summaries for the General ledger reconciliation.

3. INPUT CONTROL

 Check digit intended for authenticating customers

 Edit controls to identify office mistakes in key information.