For each control classify it either as a preventive control or a detective control. Also classify each control as either a manual control, an IT dependent manual control, at IT application control, or a IT general control. a. b. C. Software will not allow a sale to be processed to a customer that has exceeded its credit limit. Personnel responsible for running computer programs are prevented from accessing and changing computer software. Computer software generates a daily report of all shipping documents (bills of lading) that have not resulted in a sales invoice. >

For each control classify it either as a preventive control or a detective control. Also classify each control as either a manual control, an IT dependent manual control, at IT application control, or a IT general control. a. b. C. Software will not allow a sale to be processed to a customer that has exceeded its credit limit. Personnel responsible for running computer programs are prevented from accessing and changing computer software. Computer software generates a daily report of all shipping documents (bills of lading) that have not resulted in a sales invoice. >

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Consider the following list of internal controls.
For each control classify it either as a preventive control or a detective control. Also classify each control as either a manual control, an
IT dependent manual control, at IT application control, or a IT general control.
a.
b.
C.
d.
e.
Software will not allow a sale to be processed to a
customer that has exceeded its credit limit.
Personnel responsible for running computer programs
are prevented from accessing and changing computer
software.
Computer software generates a daily report of all
shipping documents (bills of lading) that have not
resulted in a sales invoice.
An accounting clerk follows-up on a computer-generated
report of all shipping documents (bills of lading) that have
not resulted in a sales invoice, to determine if an invoice
should be generated.
An accounting employee performs a monthly bank
reconciliation.

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