1. Identify at least five weaknesses in Pearl Corporations marketing, ship-ping,
ID: 371937 • Letter: 1
Question
1. Identify at least five weaknesses in Pearl Corporations marketing, ship-ping, billing, and receiving information system. Describe the exposure resulting from each weakness. Recommend control procedures that should be added to the system to correct the weakness. Format your answer as follows: Weakness Threat Recommended Control Procedure( s)
2. Discuss how Pearl Corporation could use IT to improve both control and efficiency during sales order processing.
Shippling Department Bulling Depertmont Recelving Department Marketing Departmment Orders Goods received packaged sales order Invento nvento Sales 2 order 1 on-line on-line order signed date From accounting Sales order 2 Sales invoke prepared listing of inventory changes Sales or invoice inserted on pockage inventory additions Sales 2 invoice Goods shipped ding changes 91454 Kathryn lose Supervisor inventory deductions Listing of inventory changes Filed daeExplanation / Answer
1.
2. IT systems can help Pearl Corporation a great deal.
Starting with the obsolete method of manual preparation of sales order, it would be much better to record all sales orders through a computer and linking the same with the shipping department. It would also be easier to maintain records. During processing of the order, a well placed system can help them check their client order history, payment history as well as prefered choice of delivery. Also, it would make the receiving departments job much easier and more efficient. The Inventory management system will also benefit them by a great deal and avoid any orders from going unfulfilled or rejected.
Weakness Threat Recommended Control Procedure Manual preparation of sales order High chances of human error Computerised sales order preparation system needs to be used Credit sales without checking history Bad Debts Have part debit, part credit system and check history before placing order Shipping staff under training Delay in shipment Accomodate the delay by accelerating training programs Shipping and receiving department share one computer terminal Delay in processing Purchase more equipment as needed Inventory checked yearly Wrong estimation of Inventory Install required Inventory Management SystemRelated Questions
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