Subject Name: Accounting Information Systems
Subject code: MAC002 A
Lecturer: Professor. Dr. Nadeem Tahir.
Assignment prepared by Bhuvaneswari Thennarasu-1487017.
Case study 01:
b. Recommend control procedures that must be added to overcome weaknesses
identified in part a.
The Hi– Fi Manufacturing company purchased over $20 million worth of office
equipment under its Special ordering system last year. Each individual order price
range varies from $10,000 to $60,000.
The Department Manager is the one who creates budget for the low volume items
that are one which comes under special orders. The budget limits the type of the
product and the dollar amounts of the office equipment where the department head
request is approved at the beginning of the year by the board of directors.
The special ordering system functions as follows: Purchasing, Receiving, Accounts
