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FNSACC506 Implement And Maintain Internal Control Procedures

Questions:

Task

You have been recently employed as an accountant for Motherboards and More Pty Ltd. The CFO has tasked you with reviewing the Revenue cycle and providing advice to management regarding the recent ‘Ransomware Outbreak’ in May 2017. The CFO has provided you with the following:

  • A narrative providing an overview of the revenue cycle;
  • A level 0 data flow diagram depicting the revenue cycle;
  • A recent article regarding the Ransomware Outbreak.

These are all available in Interact resources.

Using the information provided to you by the CFO, you need to prepare a business report to him including the following:

  1. A summarised overview of the Revenue Cycle, from order to invoicing, for Motherboards and More [this should be no longer than one (1) paragraph. The CFO is already aware of the cycle, but this overview helps bring your report together for other readers]
  2. Identification of; 
    a. internal control weaknesses in Motherboards and More Revenue Cycle.
    b. the impact these weaknesses could have on the organisation?
    c. specific internal controls which could be implemented by Motherboards and More in the coming weeks to mitigate the risks posed by the internal control weaknesses you have identified. Your CFO does not want theoretical controls suggested. They want practical controls that they can implement within the organisation. (5 marks) [Note: all three (3) parts of question two (2) should be included as a table in your report
  3. A brief overview of the Ransomware attack.
  4. A detailed review of appropriate controls which you would recommend be implemented at Motherboards and More to protect the organisation from a potential Ransomware attack similar to the one experienced in the article provided to you by the CFO. These could consist of both application and general controls. In your recommendations, you need to consider which controls are the most appropriate for your client.

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