Evaluating Controls
Tasks:-
• Review the Southwest case to evaluate transaction control weaknesses
a) Describe the control weakness (just a short statement of weakness);
b) Describe how the weakness could create a material error in the financial statements
c) Make a recommendation on how their controls could be improved to mitigate this weakness; and
d) Discuss some potential weaknesses in the control you suggest (e.g., how it might be overridden).
e) Limit your answers to the four most serious weaknesses you find in each process.
• Document your findings in the SW Controls Template.
• Write up an analysis of Southwest's sales and purchasing processes vulnerability to fraud based on your analysis of their control systems.