Tasteless Tea Company

Tasteless Tea Company

Memo
Re: Internal Controls for Your Revenue Cycle
Recommendations and Threat Analysis
After reviewing the processes that Tasteless Tea Company uses in its revenue cycle, I have made an analysis of the biggest threats that the company faces and the controls that should be put in place to minimize these threats. Many of these threats can be reduced by proper use of the new information system proposed for 2009.
One of the largest threats, as mentioned in the company information, is your competitions’ abilities to process, fill, and deliver orders more efficiently than Tasteless Tea Company currently can. Because orders from sales team members are mailed in, there is a delay before the orders even reach the main facility to be processed. Also, mailing hard copies can be unreliable. All sales associates, retail stores, and customer organizations should have a remote logins to place real-time orders directly into the system. Each user will have a personalized login and password to place orders so activity can be tracked. Orders will reach the main facility immediately for processing instead of being several days out. Orders above certain dollar amounts can be directed toward sales managers for immediate approval, if necessary.
Real-time order placement also helps minimize the ability to place customer orders outside of a customer’s credit range. When orders are placed, the system will run validity tests to make sure the user is authorized to place orders or view information, completeness and validity checks to make sure the order information is complete and valid, and a limit checks to make sure customers remain under their credit limits. If credit needs to be established or increased, the order will go directly to Tasteless’ credit department for verification and authorization.
This system also reduces the threat of human error. Since orders are placed into the system directly by customers and sales members, the orders are only input one time. Currently,...