Whilst Dubious Potato chips, Inc does some things appropriately, the company is also doing several things wrong which is opening these people up to risk. To begin, only three THIS internal auditors are responsible to get the internal review of their global operations. That seem possible expect 3 individuals to have the ability to keep up with therapy of inner controls intended for an entire organization. This can result in some things falling through the breaks. Locally, a single person is in fee for all of the accounting and administrative functions of an office. Having one person responsible for these can cause problems with thievery or other issues that damages the company. The computing environment of this firm seems healthful overall. Within programming, I noticed that the person in charge of modifying the code also checks the code to see if it truly is functional. These two duties need to be separated.
Authorization appears to be in good shape. Precision of the getting process offers one risk that I observed. When a amount does not can be found, the attendant simply makes its way into a new quantity into the system. There should be confirmation that customer will in fact exist. In regards to the quality of the purchasing process, an associate of the management office does not need to be involved in receiving a bundle. That should be the position of the factory clerk. In the event the admin can receive packages, he or she could possibly be using them for own advantage or making fake instructions. Completeness does not seem to be a concern.
Physical and Reasonable Access In my opinion that the organization is at a very high risk by allowing a single person handle the accounting and administrative obligations of the regional offices. Both of these need to be separated because that each would be granting their own function. If they are not separated, you could have the accountant messing with the ebooks then approving of this since they also have management duties. This can lead to scam, theft, and many other issues. There should be at least one person for each role to keep each other in charge of one another. There should also be a supervisor of the local workplace to review both the accounting and administrative function to ensure that there is not any collusion that is occurring. Segregation of responsibilities is important in this particular purpose. If a regional office was doing something wrong it could impact the books and integrity with the entire company.
Program Development and Change Control
While reading this story, I discovered that program alterations are analyzed on the creation system by individual who applied the transform, then the test results are after reviewed by a supervisor. I think that the execution and testing need to be independent duties mainly because one could simply bypass the test or give it a positive result for someone else to examine. The director should evaluation the changes themselves to ensure that a powerful change has become made to the program. If these changes are certainly not made, it could affect the plan negatively which could affect others throughout the company without even understanding it. This kind of software fades to everybody, so it is important that it is trustworthy. I as well believe that when the software is applied, it should be done so by a professional. Mailing the software to the regional administrator and having them go through the procedure themselves can result in issues afterwards. Someone from your SBCC will need to handle that on their own to make sure that no concerns arise during the process.
At present when a merchant or products on hand number would not exist, the clerk should be to enter it in the system. This really is a weak point because a neighborhood office could possibly be creating a fake client to fabricate revenue or rob products. They should implement a process where when the customer may not be found, the regional business office follows up with the person who also placed the order to obtain the customer data, and then the regional office can follow up with the customer themselves to confirm the order. One more issue in the purchasing orders is that a great administrative employee can receive shipments. This kind of job ought to only be performed by the warehouse receiving clerk as he should never have access to almost any ordering of products.. The management employee may place a great order him self, then take it to get his personal employ or disposal. This could result in theft of goods for sale on a secondary market or it can be simply to fabricate sales of the specific office. This management employee must not handle any kind of shipments unit they have been confirmed and matched up with a PO. This can just be resolved using a very strict segregation of duty plan that can stop anyone who is unauthorized from obtaining shipments.
Dubious Poker chips has many dazzling spots within their system, nevertheless there are also a lot of obvious risks. I actually addressed the danger within this survey and think that the changes will make a positive effect on the company as a whole and reduce all their risk. A few of the changes advised will take money and time to apply, but the firm should not permit that impact their decision making. These are important to reduce risk and help the company going forward because these weak points could damage them in the future.