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Ateneo de Davao University
School of Business and Governance
Bradmark Comprehensive Case
Revenue Cycle
In Partial fulfillment of the Requirements
In the Course
IT Audit - ISM424
Presented to:
Mrs. Mylene S. Caballero
Instructor
Presented by:
Course and Section:
Date:

Bradmark Wholesale General Supply
An ACL™ Case Study
Bradmark is a wholesale general supply company that ships to business customers throughout
Northeast Pennsylvania, New York state, and Southern Connecticut. Bradmark has developed a
competitive edge by offering a wide variety of quality products at competitive prices. The
company’s products range from paint to watering cans.
Bradmark is a publicly owned company, whose board of directors has retained your firm to
conduct the annual audit. You are the in-charge auditor who is currently examining Bradmark’s
revenue and expenditures procedures and related accounts. Bradmark’s main offices are in its
Allentown, PA warehouse. The following describes your client’s system configuration and
business procedures.
System Overview and Background
Bradmark’s information system is a recently purchased application that runs on a client-server
network configuration. James Walker, a systems designer in Bradmark’s IT department, played a
central role in implementing and modifying the system to meet Bradmark’s specific needs.
Because of Walker’s familiarity with the system, he was asked by top management to
temporarily oversee the initial running of the new system to ensure a smooth transition from the
old legacy system. After several months, James Walker was offered a promotion to Warehouse
Manager and given permanent responsibility for product purchasing.
Sales and Cash Receipts Procedures
The flowchart in Figure 1 and the record layout in Figure 2 (see the related PowerPoint file for
figures) illustrate Bradmark’s sales and cash receipts procedures.
Sales Department
Customer orders are received by mail or fax in the sales department. One of the sales staff
accesses the customer record and reviews the available credit before creating a Sales Invoice
record.