Sales Accounting System Risks Essay
Evaluation of Manual and IT-Based Sales Accounting System Risks
Copy Right: Anthony Butka Ralph Avallone Hong-Ming Yen
We meet Sally St. James of St. James Clothiers who has a retail clothing store in Tennesse. Sally has decided to abandon her manual sales entry system and convert to a more sophisticated IT-based application. As the audit engagement team we have been asked to review narratives of former years and then draft a narrative for the new system. We will address the weaknesses of having a manual based sales entry system. We will discuss how switching to an IT-based will take care of some of those weaknesses. We will then talk about some of the new risks that Sally St. …show more content…
g. Without the ability to see physical store receipts, no alteration can be made and the deposit slip must match the computers sales amount or else an exception report is sent to the owner.
5.4.3 The use of an IT-based sales system generally will solve a lot of the manual sales accounting