shared via CourseHero com This study resource was This study source was downloaded by 100000815946542 from CourseHero com on 07 20 2021 03 19 46 GMT 05 00 https www coursehero com file 14180952 210 B A A C 1451 a Create a data flow diagram of the current system b Create a system flowchart of the existing system c Analyze the internal control weaknesses in the system Model your response accordingto the six categories of physical control activities specified in SAS 78 COSO d Prepare a system flowchart of a redesigned computer based system that resolves thecontrol weaknesses you identified Explain your solution Spice Is Right was established in 1990 in Boston where they began importing exoticspices and cooking sauces from India and China They distribute these specialty foods toethnic food shops cafes and restaurants across the country In addition to their Bostonheadquarters and warehouse the company has a distribution center in Elizabeth NewJersey Spice Is Right currently employs over 100 people has dozens of suppliers andtrades in hundreds of ethnic and exotic foods from all over the world SOLUTION a b See the following pages c Internal Control Weaknesses1 Purchasing approves and executes purchases The company needs an inventorycontrol function 2 Purchasing updates inventory records for transactions that it previouslyapproved and executed 3 Receiving clerk prepares receiving report from the packing slip Should have aBlind Copy of the PO 4 Accounts Payable approves vendor payments based only on a PO and Invoice They have no evidence of inventory receipts and inspection They need areceiving report as well 5 AP approves liability and writes the check 6 AP clerk has access to the AP control account in the general ledger and the APsubsidiary Cash Disbursement voucher file shared via CourseHero com This study resource was This study source was downloaded by 100000815946542 from CourseHero com on 07 20 2021 03 19 46 GMT 05 00 https www coursehero com file 14180952 210 B A A C 1451 shared via CourseHero com This study resource was This study source was downloaded by 100000815946542 from CourseHero com on 07 20 2021 03 19 46 GMT 05 00 https www coursehero com file 14180952 210 B A A C 1451 d Flowchart of revised systemThe following issues however need to be addressed Upgrade stand alone computers to a networked environment The internal control problems already covered need to be corrected in the newsystem A system configuration similar to figure would be appropriate shared via CourseHero com This study resource was This study source was downloaded by 100000815946542 from CourseHero com on 07 20 2021 03 19 46 GMT 05 00 https www coursehero com file 14180952 210 B A A C 1451 Powered by TCPDF www tcpdf org