C.

Analyze the Internal Control Weakness in the System

a. Supervision
1) Walker company must have an authorize person, known as the checker to assist the
checking and the flow of inventories in the warehouse.
2) They must implement a cntroller department. The cash receipts department
typically reports to the treasurer who has responsibilityfor financial assets.
3) Since the company encounters delivery delays, they must have a carrier department
so that inventories will be turned over to customers or to other branches as fast as
possible to prevent inventory.
b. Segregation of Duties
1) Walker company must have tasks dispersed to different departments.
2) In order to maximize time and maximize the order sales. Walker company must be
able to see that different departments are assigned with their specific tasks.
c. Access Control
1) Walker company’s computer department must see to it the importance of providing
more computer units.
2) The organization management must implement controls that restrict unauthorized
access. Since the company relies only to a stand alone work station and it has no
physical source documents for back-up, the destruction of files can leave Walker
Company with inadequate inventory record.
d. Inventory Records
1) Walker Company’s sales department must always maintain file back-ups to prevent
loss of sales records since they only have a stand alone PC work station.
2) Walker company must be able to purchase more computer for fast and more
reliable documents for their sale inputs to prevent manual procedures may result to
communication logs to employees or logs to employees or logs to transmitting order
to purchasing department.