- Current System
In the current flowchart, the client places an order through a phone call to the phone center. The warehouse attendants work on the order at the shipping. In four days, the order is shipped, and then a shipped company is contracted to deliver the order to the clients.
- The chart below contains the control weaknesses that were identified in the company, the fraud caused to the company’s systems and their possible solutions. It is evident that with these weaknesses the performance of the company would go down and result in losses. However, with these weaknesses having been highlighted earlier, the risk of making losses and incurring excessive expense will be controlled.
| Control weakness | The fraud that may occur | Solution to the weakness |
| Poor records | Poor record leads to inaccurate data to the system thus giving the wrong data. | Ensure the records are updated correctly before being transferred to the accounting system |
| Incorrect filling of invoices | Once the invoice is wrongly filled, the error will be transferred to the entire system thus result in the wrong output. | The invoices should be correctly and carefully filled and overlooked to ascertain it is correct. |
| Doubtful supervisors | Once the warehouse workers are of doubt, then the work will not be done effectively and whatever they do will be of no trust. | It is advisable to encourage the workers to be trustworthy with their work or else to that to face the consequence of their deeds. |
| Assets misappropriation | This may cause the delay of the work or the work not done according, thus delivering goods with complications. And cash schemes. | There must be a thorough checking of the receipts, check tamped cheque and bill schemes. |
- Recommended System
The new recommended system is set to address the challenges identified in the company by swapping different department’s managements and hiring new workers. A new workforce will ensure that the company runs smoothly to utilize the new system for profitability. The ordering process will be made electronic and vendors will create an account on the company website where 2wewthey be making their orders. This will go a long way to effect changes as we plan to expand our services and make them better for our clients. There will be less handling of cash as every payment will be made electronically. This will enable the accounting office to keep track of expenditure and profits.