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Question: During a catch up over coffee, Jack asked Terry of Terry's Flooring to outline controls that he used to manage risk and improve business processes. Terry was unable to identify the actual controls used (as he had hired external consultants), but was able to show Jack a Data Flow Diagram for his inventory orders and purchases. Terry admitted that he was more engaged with the sales and marketing aspects of his business, but acknowledged that it would be useful to understand what controls his business did have in place.
REQUIRED: In small groups i)Identify any controls that are evident from the data flow diagram ii)Suggest other controls that would be beneficial for Terry as part of his inventory purchasing processes Answers should specify for each control whether it is preventative, detective or corrective. Controls from all 5 of the ASA 315 classifications may be considered
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