8 terms

Production Cycle Threats and Controls

poor product design
improved information about effects of product design changes on total costs; detailed data about warranty and repair costs
over- or under-production
accurate production planning system; proper approval of production orders
suboptimal investment in fixed assets
review and approval of fixed-asset transactions; budgetary controls
theft of inventories and fixed assets
restricted physical access to work-in-process and finished goods inventories and to fixed assets; documenting all materials movements; identification and tracking of all fixed assets; periodic counts of inventory and fixed assets; proper documentation and review of all transactions involving disposal of fixed assets; adequate insurance
disruption of operations
backup power supplies; disaster recovery plans; evaluation of suppliers' disaster preparedness
inaccurate cost data
data entry and processing controls; use of bar-code and RFID technology where feasible; periodic reconciliation of records with physical counts
loss, alteration or unauthorized disclosure of data
backup and disaster recovery plans; logical and physical access controls; configuration of ERP systems to enforce proper segregation of duties; data transmission controls
poor performance
development and periodic review of appropriate performance reports