Threats, Risks and Controls

  

Scenario Information
BeGood Baking Supply is a small bakery supply company formed as a  closely held corporation. The company supplies raw baking materials,  paper goods, and equipment to restaurants and bakeries in three states  in the upper mid-west. Most of its business, however, is located in a  large metropolitan area. BeGood wants to increase its presence in the  region and serve five states. In fact, the owners of BeGood would like  75% of their business to come from throughout the region rather than the  current metropolitan area. In order to do this, the owners understand  they must diversify offerings and lines of business.
Currently, BeGood has a phone center where customer orders are taken;  these orders are then sent to shipping where the order is filled in its  large warehouse and shipped within four days. BeGood outsources its  shipping to a local trucking company. Once the order ships, all  paperwork goes to the accounting department where it is entered into the  accounting system. BeGood still uses the same accounting system it has  used since the inception of the company. All aging of receivables and  other analysis is done using Excel spreadsheets. Purchasing and tracking  of inventory are done solely by the warehouse manager. Invoices for  inventory purchasing are sent to the accounting department when goods  are received.
The owners at BeGood are wondering how they can utilize an online  presence and further automate its systems in order to facilitate its  growth and diversify its business. The owners may also like to expand  into the retail business.
You have been hired as a full-time staff accountant at BeGood Baking  Supply, and have been given the task of evaluating and recommending a  viable accounting information system for the accounting and financial  data of BeGood in order to facilitate expansion and diversification. As  you begin your research, you realize that many departments are involved  in the information system, and communication is key.

Instructions
As part of the BeGood AIS assessment, you must address risks,  threats, and controls in compliance with the COSO framework. You know  the external auditor will also want this information, so you decide to  document it now. In preparation for the company external audit, you  prepare the following documentation to assist the audit team in starting  their work:

Document a new AIS with a flowchart that will address the size and scope of BeGood in its current form.
List at least three vulnerabilities and appropriate control measures  to manage the vulnerabilities for each function (department) within the  flowchart.
Devise controls based on threats in a general ledger reporting system.
Evaluate at least one security policy or procedure that would minimize threats and risks.