Reference no: EM133001384

Question - SBD is an e-commerce business that sells various clothing and footwear from its website and mobile Android and IOS apps. SBD has a small IT staff that designs and codes SBD'S customised website and mobile apps. SBD's server and data centre are located on the ground floor of its three storey building.

As SBD's business has increased, and due to high turnover and lack of IT staff, data backups are only done whenever time permits. The IT staff kept the data backup files in the same room as the server and data centre. A week ago, due to the monsoon period, there were several days of heavy thunderstorm. SBD's building experienced flooding that destroyed the firm's hardware, software and on-site data. SBD was unable to restore its system for more than 2 weeks since the firm had to buy the hardware, download all its software and re-enter the data again. This caused SBD to lose many customers. It was later found that SBD kept backup hardware in the storeroom in the 3rdstorey.

Required -

a) List four (4) weaknesses in the internal controls.

a) For each of the internal control weaknesses you identified, recommend and explain one internal control plan that could mitigate the weakness.