Internal Control Structure for Application Controls-116032

The activity is controlled manually for detecting the defective item. Detective process is for detecting the defective item out of the ordered items. The ordering of the product is done in fewer amounts so that they do not find difficulty in identifying the defective items. By creating the Breakdown order criteria they have made the manual working of the process easier or it can be said that by implementing this system they have simplified their manual process. The operation of the warehouse starts with opening of the packages that contains less quantity as they can be detected easily. The packages are then seen or inspected as per the demand of the company and if the item if defective them it is separated in a separate bin or new location. It is the ware house manager who maintains the spreadsheet of all the records of the inventory. Basically the process of selecting the goods is done completely manually. The main reason of applying this process is to eliminate all the defective items so that the customers can return the goods in less number. The manager maintains the books according to the requirement of the next level of the process. Here the manager is responsible for all the process and all the working thus the manager has to inspect all the operations accordingly. Being in detection mode the company strictly finds out the defects out of the ordered items and moves out the good goods accordingly.

1. Segregation of Duties: Different duties are assigned to different employees so that they can perform their activities in an efficient manner. The responsibilities that involve the authorization for transactions, that is the approval required for business transactions and then the recording of the business transactions that are being made and also the handling of all the equipment and materials that are involved in the process of business transaction are divided. The staff or employees who are skilled to perform in the respective sections are given those types of jobs in order to avoid any kind of errors or mistakes. The process of approval is conducted by a set of employees, the account book is maintained by another set of employees and custody of all the assets involved is the responsibility of another set of employees. Through this process Spectrum Suppliers smoothens out its work processes and also achieves efficiency in its system of distribution. 2. Record Keeping: By keeping a proper and specific record of all the business transaction, the management can at any point of time find out if there are any mistakes being made in the business transactions. This helps them to prevent any sort of error from happening and also taking extra care if any problematic issue like that pops up. Moreover, keeping an exact record books helps in the purpose of reverse distribution when some goods or materials are needed to be returned or if a customer wants refund. Reverse distribution process can be very difficult if specific and perfect records of business transactions are not maintained.