BAGAS FERRY PRADITYO

13410100021
SIA SYSTEM FAILURES
1. Fred, a buyer at Welke Company, ordered unneeded inventory items from a vendor of
which he is an owner. (E)
2. Sydney worked in the receiving department at Rochester, Inc. One Day, goods were
received from Hemlock Corp for which no open purchase order could be found. To get
the items received, Sydney figured out a way to create a purchase order. As it turns out,
the goods had never been ordered but now Rochester is stuck with them and had to pay
the bill that came from Hemlock. (E)
3. Betty, a buyer ar Winton, Inc., was in a hurry to buy a part needed to get th Winton
factory back in operation. She found protoparts Company, a local vendor that could
supply the part that day but for a premium price. Because it was an emergency, she
created a vendor record for ProtoParts and issued the purchase order. Subsequently, other
buyers began to use ProtoParts for other purchases. (D)
4. Julie who wroks in the warehouse at Worthington, Inc., has gotten into some financial
difficulties and has figured out a way to make some extra cash by working with the folks
at Chester Company. She creates orders for purchases from Chester and records a receipt,
but no goods are ever received. Subsequenly Chester sends a bill to Worthington, which
gets paid and Julie gtes paid 20% of the take. (J)
5. At sarcy, Inc., there are often discrepancies between what is ordered and what is recorded
as received, discrepancies include wrong items and wrong quantities. (B)
6. Brady Company is often running out of inventory of certain key items. When research is
conducted to find out the reason for the stockouts, they find that a purchase order had
been issued, but the goods had not yet been received. (F)
7. Warehouse managers at Troy, Inc, have been discovering inventory shortages. When they
investigate the paperwork transferring the goods from receiving to the warehpuse, the
evidence indicates that the goods had arrived in the warehouse. (A)
8. The accounts payable clerks at Bangor Company have difficulty reconciling the
quantities recorded as received and the quantities on vendor invoices. Usually, the
vendors claim that they are billing for the amounts that they had shipped. (I)

BAGAS FERRY PRADITYO

13410100021
SIA SYSTEM FAILURES
9. Helms Corp. uses the internet to send purchase orders to its vendors. The vendors for
Helms Corp. have been receiving purchase orders that seem to be from Helms but are
actually bogus. (C)
10. The internal audits at Natick Company have found several discrepancies on the inventory
data; the inventory is on the shelf, but the records do not reflect those balances, when
they investigate further, they find that the goods were received but never recorded. (K)
Answers :
a. Digital signature
b. Independent authorization to record receipt (match receipt datra with PO data)
c. Approve purchase orders
d. Compare vendors for price, terms, quality, availability
e. Monitor open purchase orders
f. Logical and physical access controls
g. Count goods and compare to vendor packing slip
h. Firewall
i. Independent vendor master data maintenance
j. Personenel management controls (supervision)
k. Perimeter and building controls
l. Segregate warehouse and receiving.