I’m trying to learn for my Accounting class and I’m stuck. Can you help?
Figure 14-21 (on page 461) depicts the activities performed in the revenue cycle by the Newton Hardware Company.
a. Identify at least 3 weaknesses in Newton Hardware’s revenue cycle. Explain the resulting threat and suggest methods to correct the weakness. Hint: Answer this question using a table with 3 columns: weakness, threat, control/recommendations.
b. Identify ways to use IT to streamline Newton’s revenue cycle activities. Describe the control procedures required in the new system.