Question

Based on the narrative presented below, identify one internal control weakness in the system as described below:

The companies information systems are a combination of manual processes and processes using internally developed software for operating, manufacturing, and human resource functions, as well as the financial accounting system, MAS 90, for general ledger, accounts payable, accounts receivable, inventory, and other accounting functions. The internally develop software has limited capability in accumulating and tracking customer information, reporting, and other functions. It was created for specific purposes when the company was information and the companies transactional volume has exceeded the capabilities of the internally developed software. And company has experienced some difficulty in obtaining useful information for management operating decisions. The company maintains an information system at the manufacturing plant independent of the companies other information systems. There is no automated interaction between these two information systems. There is no restriction on access to either of these information systems. MAS 90 is a basic accounting package used by many small companies in the formative stages. Wow it is serviceable for maintaining a general ledger, accounts receivable and payable transactions, and other core accounting functions, it is limited and its ability to provide useful financial information essential for the companies current and future size. I access your key financial information is not password restricted. The company has several personal computers and backs up information on a monthly basis.

Answer 1

Answer:-

A control weakness is a failure in the implementation or effectiveness of internal controls. ... Regularly monitoring allows organizations to test the effectiveness of their internal controls and expose weaknesses in their implementation—before bad actors can exploit them

Following are the points where the organization control weakness

• No automation in information systems
• No restriction of access
• Limited capability in accumulating and tracking software
• Accessing financial information without password-restricted

Using basic accounting software for the company - The organization using software which is not capable of  basic accounting package used by many small companies in the formative stages.