Henrico Retail (Case 9.2)

KK
Week 10
Case 9.2

  1. Point of Sale –
  * receipts, store copy is electronic
  * debit & credit authorizations, electronic
  * signed copy of credit receipt, paper
  * daily deposit sheet, paper
  * closing process receipt, paper
  * sales clerk register logins, electronic

General Ledger – paper & electronic
  * daily sales reports, paper & electronic
  * inventory records, electronic
  * monthly sales reports, electronic

4. The accuracy of the sales transactions seems to have a few gaps that may be the inherent risk simply due to the nature of any business that deals in part or in whole with cash. For example, when the customer leaves with their receipt there is nothing stopping the sales rep. from simply reversing the transaction in the system so that the balances in the master file reflect a deduction for that amount and the sales rep. can simply pocket the cash. The only way to catch that would be a physical inventory count that would result in showing a deficit of that item. The perpetual inventory records are kept electronically but it is a simple report and would not require a specialist to access it. Once the report is obtained a physical inventory count would need to be performed. Another option would be that the system does not generate a refund of cash or any other method until the item is “rescanned” by the barcode reader. This would be in addition to physical counts.

5.   To truly audit the system an IT specialist would absolutely be necessary on almost all levels. You would want to test (using a method such as the integrated test facility approach) various transactions throughout the process from POS all the way to the numbers reflected on the ledgers, to make sure that the automatic calculations are performed accurately. However, as noted above with inventory counts, it there would be testing throughout the process that included non-computer based actions.

6. Some deficiencies I noted in...