Information Systems and Communication

delivered tires and worked in the unit's inventory warehouse". These weaknesses will open the company to a huge risk.

* Monitoring Control

The Company lacks of monitoring control. Monitoring controls is a process that assesses the quality of internal control over time. Monitoring can be done through ongoing activities or separate evaluations. Ongoing monitoring procedures are built into the normal, recurring activities of the entity and include regular management and supervisory activities.

Goodner lacks of monitoring control because of employees at upper levels do not manage the lower levels by reviewing the report. Some of the employee is doing others position's activities at the same time without approval. "Sale reps had direct access to the inventory storage area. During heavy sale periods, sale reps often loaded and delivered customer orders themselves."

* Information Systems and Communication

An Information system consists of the infrastructure (physical and hardware components), software, people, procedures (manual and automated) and data. Company must be able to identify and record all valid transactions and also describe on a timely basis the transaction in sufficient detail to permit proper classification of transactions for financial reporting.

Goodner do not have proper information system. They do not record the transcation correctly. "Since the large volume of sales and purchase transactions often swamped the bookkeeper, sales representatives entered transactions directly into the system" and "A sale office's accounting records were not adjusted for these throw-aways until the year end physical inventory was taken". They do not record every of the transaction occur until they count the inventory one by one.