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Central Furniture Ltd, is a large table and chair manufacturer. Various hardwoods are used in the
manufacturing process. Computer-assisted operations are important in choosing the best piece of
hardwood for each component of the products. Computer assistance has helped improve the
quality and efficiency of the manufacturing process. Computer operations and backup are
supported by the warehouse manager, Fred. Individual boards are tagged with a bar code and
tracked for quality control purposes. Central uses a centralized microcomputer-based system for
its manufacturing and accounting operations. The company's two owners are active in the
business and approve all new hardware and software acquisitions. The controller is responsible
for network upgrades as well as for maintaining passwords and user identification codes on the
network. Accounting transactions are entered by accounting staff, although the controller can
review and correct transactions. Required A. List the six categories of functions that need to be
separated from each other. B. For each category, state if Central Furniture has these functions
separated. C. For any functions that are not separated, indicate the potential impact upon controls
and upon the audit.

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  • 1. Central Furniture Ltd, is a large table and chair manufacturer. Various hardwoods are used in the manufacturing process. Computer-assisted operations are important in choosing the best piece of hardwood for each component of the products. Computer assistance has helped improve the quality and efficiency of the manufacturing process. Computer operations and backup are supported by the warehouse manager, Fred. Individual boards are tagged with a bar code and tracked for quality control purposes. Central uses a centralized microcomputer-based system for its manufacturing and accounting operations. The company's two owners are active in the business and approve all new hardware and software acquisitions. The controller is responsible for network upgrades as well as for maintaining passwords and user identification codes on the network. Accounting transactions are entered by accounting staff, although the controller can review and correct transactions. Required A. List the six categories of functions that need to be separated from each other. B. For each category, state if Central Furniture has these functions separated. C. For any functions that are not separated, indicate the potential impact upon controls and upon the audit.