Figure depicts the activities performed in the revenue cycle by the Newton Hardware Compan...

Figure depicts the activities performed in the revenue cycle by the Newton Hardware Company.

REQUIRED

a. Identify at least three weaknesses in Newton Hardware’s revenue cycle. Explain the resulting threat, and suggest methods to correct the weakness.

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b. Identify ways to use IT to streamline Newton’s revenue cycle activities. Describe the control procedures required in the new system. (CPA Examination, adapted)

FIGURE

Newton Hardware Company Revenue Cycle Procedures