1.picking n packing goods

2.shipping goods

threats:

1.shipping error

2.theft of inventory

3.picking wrong item n wrong quantity

control:

1.ERD congi

2.document inventory transfer

3. bar code n RFID tags

1.take order

2.approve credit

3.check inventory available

4.respond to customer

threats:

1.incomplete or incorrect order

2.invalid order

3.uncollectable ac

4.stockout or excess inventory

control:

1.data entry control

2.digital/written signiture

3.credit limit

4.bar code/ RFID tags

handles customer remittence list n deposit cash in bank

threats:

theft of cash

cash flow problem

controls

separate handling function

reconcile bank account

1.invoicing

2.updating ac receivable

threats:

1.failure to bills

2.billing errors

3.posting error ac receivable

4.inaccurate credit memo

controls:

1.separate billing n shipping

2. data entry control

3.monthly statement

4.segregation of duties