Reference no: EM132516807

Point 1: The McWilliams company was founded in the 90's by Michael McWilliam and has enjoyed continuous growth over the years. Michael has 18 stores As a sale occurs, customer details including customer number and address, as well as the items purchased, are written on a blank invoice form. Item descriptions, quantity sold and unit price are also filled in, with the sales staff having some discretion in setting the unit price for situations such as bulk purchases or repeat customers. These invoice forms are collected at the end of the day and keyed in to the computer, with an invoice number assigned to invoices as they are keyed in. This number is recorded on the store copy of the invoice. Any new customers are added to the customer master list as their sales are entered and any details not gathered on the invoice are left blank. Data are stored on a central server and this server is backed up monthly. The system is also connected up to the organisation's suppliers and used to order goods.

Question 1: Identify the risks that are present in this case. For each risk, recommend an internal control procedure to mitigate this problem. Identify your recommendation as preventive, detective or corrective and explain why.