In Class #7.1 - Importance of internal control
Powersys is an electricity distribution company based in a large capital city. Its
business is to manage the electricity assets, including poles, wires, and other
equipment, that are used to deliver electricity to more than 500,000 retail and business
customers in the city. Pole, wire, and substation maintenance and improvements are a
large part of the company's operations, and teams of highly trained technicians are
used for both planned work and emergency response activities. Emergency response
is required when storms or fires bring down power lines, the power must be turned off
at the direction of police, or the electricity supply fails for any reason.
Each team has several vehicles (vans and trucks) and uses additional heavy
equipment, such as cherry pickers, cranes, and diggers, as required. Each vehicle
carries a core set of specialized parts and tools, and additional items are obtained as
required from the stores, which are located in a large warehouse in the northern
suburbs. The warehouse is staffed on a 24-hour basis to assist night maintenance
(designed to minimize disruption to business customers) and emergency response.
Make a list of the potential problems that could occur in Powersys' maintenance and