You have been recently employed as an accountant for the Big D’s Electronics. The CEO, Mr Dwayne Flynn, has tasked you with reviewing their inventory expenditure cycle. To facilitate this, he has provided you with key information relating to Big D’s inventory purchasing and management (available in Interact).
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Using the information provided to you, prepare a business report to the CEO including the following:
1. Use a system tool to develop a level 0 data flow diagram to document the inventory expenditure process, from order to payment. (7 marks)
2. Identification of: internal control weaknesses relating to Big D’s inventory expenditure process;
the impact these weaknesses could have on the organisation; and (2.5 marks) specific internal controls which could be implemented by Big D’s in the coming months to mitigate the weakness posed by the internal control weaknesses you have identified. Mr Flynn, the CEO, does not want theoretical controls suggested. He wants practical controls that Big D’s can implement in the short term. Get Accounting homework help today
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