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Assignment 4 - Production Cycle

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Melisa May Ocampo Ampiloquio
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40 views2 pages

Assignment 4 - Production Cycle

Uploaded by

Melisa May Ocampo Ampiloquio
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Production Cycle

Assignment 4

December 2021

AMPILOQUIO, MELISA MAY O.


AIS4A
Control Problems
● Off-base and invalid data will result in off-base stock assessment or recording.
● Ineffective and inefficient production operations/planning lead to either overproduction or
underproduction.
● Forfeiture and loss of production data, such as raw material orders, as well as incorrect
document file dissemination.
● Inventory theft or misappropriation has resulted in overstated asset balances.

Possible Dangers
● Generally speaking, incorrect or erroneous stock recording can result in inefficient and
ineffective finished goods production, inessential production planning, and work process.
As a result, the stock error can result in incorrect and unbalanced ending inventory in the
master data, which will have a significant impact on the company's financial performance
and position.
● The significant information that may be lost is a deliberate or unintentional debacle that
will have a negative impact on overall organizational performance.
● Furthermore, data loss and errors cause erroneous and inaccurate analysis of financial
performance, production planning, and inventory control.
● Employee output that is inefficient is caused by unprejudiced/unbiased outcomes and
created or deceptive information that influences the audit and review.

Corrective Procedures
● To reduce the risks of incorrect data entry, management must implement a distinct internal
control for data entry errors and loss.
● To avoid stock loss, physical access to inventories should be limited, restricted, and
authorized, and all inward development of stock should be archived and documented and
filed appropriately.
● Training is the key to continuous improvement and learning. It protects them from
potential threats within the system and allows them to improve their understanding and
comprehension in order to help the organization succeed.
● Maintain regular backups of all information records to avoid the accidental deletion of
important documents and files from the master data storage.

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