Tutoiral 7 (Alternative)

Question 1

What is the risk when customer order details are manually entered into the internal system and what is the recommendation?

Answer 1

• Increases the risk of input errors or fraud (e.g. altered order values).

RECOMMENDATION:
- Integrate the website directly with the inventory/sales system to eliminate manual re-entry.

Question 2

What is the deficiency in the warehouse relying on packing lists without verifying original orders and what is the recommendation?

Answer 2

• Risk of incorrect or fraudulent despatch (e.g. extra items sent).

RECOMMENDATION:
- Introduce independent verification of packing lists against original customer orders before despatch.

Question 3

What is the issue with charging customer credit cards only after despatch and what is the recommendation?

Answer 3

• Payment may be processed without confirming that the correct goods were sent.
• Could lead to disputes, refunds, or loss of customer trust.

RECOMMENDATION:
- Confirm despatch accuracy first, or consider pre-authorising cards before despatch with full charge upon confirmation.

Question 4

What is the issue with using random codes based on staff names/dates to track orders and what’s the recommendation?

Answer 4

• The codes are not sequential or unique enough to ensure all orders are accounted for.
• Harder to trace missing or duplicate orders.

RECOMMENDATION:
- Use pre-numbered, sequential packing lists to ensure completeness and traceability.

Question 5

What does a high percentage of irrecoverable receivables suggest about the sales system and what is the recommendation?

Answer 5

• Possible weaknesses in customer verification or payment collection procedures.

RECOMMENDATION:
- Tighten credit control procedures and regularly review the bad debt allowance policy.