(1) Database maintenance
Deficiency
Routine maintenance work is behind schedule resulting in a backlog of input for new subscriptions, cancellations, and changes of addresses.

Consequences
Accounting errors and loss of revenue could arise through

• not invoicing new subscribers
• invoicing cancellations
• sending invoices to incorrect addresses.
  Customer goodwill may be lost if subscribers no longer receive their magazine through it being sent to the wrong address.
  New subscribers, failing to receive their magazine promptly, may cancel their subscription.

Recommendations
Extra staff should be employed to bring the database up to date as soon as possible. Thereafter it could be kept up to date by a part-time employee. The cost of this should be outweighed by the benefit gained through avoiding lost revenue and customer goodwill.

(2) Advertising deals
Deficiency
As a result of staff shortages, some deals with advertisers are not being recorded and order confirmations are not being sent out.

Consequences
A loss of revenue and customer goodwill could result, as order confirmation letters are used as the basis for allocating advertising space.
Advertisers may be unable to place adverts because no space has been allocated.
Advertising space may be allocated in error and then left without an advertisement.
The lack of written confirmation of the terms may lead to incorrect invoicing, resulting in a loss of revenue or customer goodwill.
There may be delays in receiving monies from advertisers whilst invoicing disputes are being dealt with.

Recommendations
A pre-printed, pre-numbered document should be used for recording all deals. These should be filed and referenced to the order confirmation letters and reviewed on a regular basis.
Alternatively, a suitable multi-part document could provide a copy to replace the confirmation letter.
Additional staff should be allocated to the department to record and confirm all deals are still current.