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  • Structure
  • Schedule
    • First Half of the Semester
      • Week 1: Introduction
      • Week 2: Business Process; Assertions
      • Week 3: Fraud, P2P Controls
      • Week 4: OTC Process, Types of Controls
      • Week 5: Inventory & Shipping Controls
      • Week 6: Invoicing & Collection Controls
      • Week 7: IT vs. SAP Controls, Security 1
    • Second Half of the Semester
      • Week 8: Security: Roles, Finance Process & Controls
      • Week 9: Security: User Management, Segregation of Duties
      • Week 10: Data, SOD/SAT Review
      • Week 11: Change Management, Development
      • Week 12: Auditing, Table Security, Risk / Control Framework
      • Week 13: SAP Futures, Special System Access (updated Nov 30)
      • Week 14: Character vs. Controls
  • Assignments
    • Exercise 1: Procure to Pay
    • Exercise 2: Order to Cash
    • Exercise 3: Journal Entries
    • Exercise 4: Segregation of Duties (SOD)
    • Final Exercise: Risk-Controls Framework
    • Extra Credit Assignment
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Auditing Controls in ERP Systems

ERP Systems

Week 5 Wrap-up: Inventory and Shipping Controls

October 5, 2016 by Edward N Beaver

Continuing great job on the discussions.   You raised most of the important points but let me summarize my view.

Q1: Fraud Triangle on ‘One Piece at a Time’ video:  Opportunity – it’s obvious the workers were confident in the opportunity to take various car pieces (one piece at a time); Incentive – a ‘free’ car; Rationalization –  It’s a large company that won’t miss the parts

Q2: For the ‘One Piece at a Time’ video scenario – what should the operations manager do?  You shared some good ideas.  From a risk perspective I would recommend focusing on changes to prevent the large parts from being stolen (how does a transmission leave the plant unnoticed?).  However, some cultural change actions may also be supportive (and needed).

Q3: In shipping – what controls are different in purely domestic vs. international company?  Many differences were noted.  My experience the key differences are currency, languages, import-export regulations, expanded paperwork requirements, customs authorities are an added interested party.  The added complexity is often outsourced by companies to freight forward and import brokers.

Q4: What are 1-2 less obvious inventory control measures are used with us as consumers?  Are they effective?  Anti-theft, anti-shoplifting measures abound from tagged items with door alarms to video surveillance.  They seem effective to me.

 

 

Filed Under: Week 05: Inventory & Shipping Controls Tagged With:

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Weekly Discussions

  • Assignments (11)
  • Exams (5)
  • General (6)
  • Real World Control Failure Presentations (27)
  • Week 01: Introduction (4)
  • Week 02: Business Process; Assertions (4)
  • Week 03: Fraud, P2P Controls (2)
  • Week 04: OTC Process, Types of Controls (3)
  • Week 05: Inventory & Shipping Controls (3)
  • Week 06: Invoicing & Collection Controls (1)
  • Week 07: General IT vs. SAP Controls, Security 1 (3)
  • Week 08: Security 2, Finance 2 (2)
  • Week 09: Security: User Mgmt, Segregation of Duties (2)
  • Week 10: Data; SOD/SAT Review (2)
  • Week 11: Change Management, Development (3)
  • Week 12: Table Security, Control Framework (2)
  • Week 13: SAP Futures, Special System Access (2)
  • Week 14: Character vs. Controls (4)

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