Case 5-2: Lexsteel Corporation

What should the guide of Lexsteel do in ordain to harangue the immanent problems amid the strengthening? •The guide became sensible of the immanent problems delay the accounts payable arrangement accordingly of the argument made delay the superficial auditors. •Each twig director is fond the warrant to ordain materials and offspring embarrassment donation ordains quickly to the vendors. •Physical sums of raw materials are not effected since tnear is a absorb-cogent computerized constant list arrangement. •COMPUTER RESOURCES: The assemblage computer mainframe at urbane headquarters is linked to the computers at each twig locations. Postulates transmission betides among leased telephone lines among assemblage computer and twig stations wherein it is maintained in an integrated postulatesbase. The software besides allows flexibility for managing user similarity and editing postulates input significance tnear is no regulate balance the software for it allows postulates editing delayout the decent authorization fond. •PURCHASING PROCEDURES: The origination ordains and delayhold bills of materials needed are generated by the assemblage computer at urbane headquarters. While the donation ordains for raw materials are generated by the purchasing business and is mailed to the vendors which inclose an counsel to the vendor that the materials should be quickly delivered to the manufacturing fix. Tnear is a regulate among the era of origination ordains needed and the donation ordains offspringd to the vendor but it is not an qualification in the transaction of wrong. At reception, the manufacturing fix examines and verifies the sum across the packing slip and bestows the receiving postulates to the accounts payable at urbane headquarters. Even though tnear is a decent disconnection among conservation and recording, stationary wrong may betide accordingly of confederacy. Also, each twig director is fond the warrant to ordain materials and offspring embarrassment donation ordains quickly to the vendors. Wrong may besides betide if confederacy obtain be made by the twig director and the vendor, delay that decent regulate is a must. Since the concourse employs a absorb cogent computerized constant list arrangement, corporeal sums of raw materials are not effected. With that, the era of origination ordains and donation ordains may be deceived accordingly the sum of raw materials that are needed are not matched delay the decent corporeal sum on its completion list. •ACCOUNTS PAYABLE PROCEDURES: Vendor invoices are mailed quickly to the urbane headquarters and entered by the accounts payable personnel when common. This frequently betides antecedently the twig stations bestow the receiving postulates so the commemorative vendor invoices are not decently matched delay the receiving repute. Uncertainties of equality may halt. The checks and the liquidation listings are made by the accounts payable business and are bestowted to the treasurer’s station for certainty and mailing to the payee. After validation, liquidation listings are returned to the accounts payable minority for filing. In near, tnear is no decent regulate in the provision and validation of checks and liquidation listings for the certainty of it is not effected which may termination into confederacy and fable of dummy payee made by the treasurer’s station and the accounts payable business.