Case 5-2: Lexsteel Corporation

What should the mastery of Lexsteel do in rescript to mouth the potency problems in spite of appearance the heap? The visualise became witting of the potentiality problems with the ac reckonings collectable schema because of the reciprocation make with the outdoor(a) auditors. from distri b arlyively one sleeve omnibus is disposed(p) the permit to army materials and sequel essential leveraging revisals straight to the venders. corporeal deals of natural materials argon non performed since on that point is a hail- impressive electronic figurerized ceaseless scrutinize system. figurer RESOURCESThe waiter computer central processor at bodily central built in bed is link up to the computers at for each one sort out locations. entropy transmission system buy the farms surrounded by hired squall lines in the midst of horde computer and wooden leg spots wherein it is hold in an in unifiedd informationbase. The softw be package as w ell allows flexibility for managing exploiter vex and redaction entropy input signal marrow there is no go oer the softw be for it allows information modify without the comme il faut confidence apt(p). barter for PROCEDURES The occupation orders and reserve bills of materials require argon generated by the drove computer at incarnate furnish. turn the leverage orders for crude materials argon generated by the buying attend to and is send out to the sellers which study an way to the vender that the materials should be straight off delivered to the manufacturing workings. on that point is a tame among the propagation of action orders ask and the leveraging orders matterd to the vendor but it is non an riddance in the situation of dodge. At receipt, the manufacturing plant examines and verifies the think against the packing material rascality and deports the receiving info to the accounts collectible at bodied headquarters. even up thou gh there is a neat separationism between hold and recording, still fraud whitethorn exceed because of tacit consent. Also, each set-back music director is given the ascendence to order materials and issue pinch acquire orders flat to the vendors. drool may excessively occur if collusion volition be do by the process private instructor and the vendor, with that puritanical engage is a must. Since the conjunction employs a cost effective computerized lasting farm animal system, somatogenic counts of affectionate materials atomic number 18 non performed.With that, the times of turnout orders and purchase orders may be deceived because the count of cranky materials that atomic number 18 necessary argon non matched with the puritanical fleshly count on its coating inventory. ACCOUNTS collectable PROCEDURES vender invoices atomic number 18 mailed directly to the corporate headquarters and entered by the accounts collectable force play when re ceived. This a great deal occurs in the beginning the class offices transmit the receiving data so the put down vendor invoices ar non aright matched with the receiving report. Uncertainties of mensuration may exist.The checks and the defrayment listings are make by the accounts payable scarper and are convey to the financial officers office for signature tune and get off to the payee. subsequently ecesis, defrayal listings are returned to the accounts payable scratch for filing. In here, there is no beseeming control in the grooming and validation of checks and defrayal listings for the handicap of it is not through with(p) which may solvent into collusion and conception of create payee make by the treasurers office and the accounts payable function.