Auditing & Assurance Services 6th Edition by Timothy Louwers

تمرين 379

Assurance Services. Henry's Health Food Store maintains a perpetual inventory on its computer. The sales representative from A-Plus Vitamins has recommended the following to Henry:
• All the files should have password protection.
• A-Plus Vitamins should be given the URL and the password for Henry's inventory file on the computer, which can be accessed from outside.
• A-Plus Vitamins will search the inventory for items that fall below an established reorder point and will automatically ship a set amount of product to Henry's.
Required:
a. What are the advantages of this arrangement for Henry's? For A-Plus Vitamins?
b. What concerns might Henry's have in this arrangement?
c. How might these concerns be addressed?