Accounting Information Systems
11th Edition
ISBN: 9781337552127
Author: Ulric J. Gelinas, Richard B. Dull, Patrick Wheeler, Mary Callahan Hill
Publisher: Cengage Learning
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Question
Chapter 10, Problem 3P
Summary Introduction
To match: The control plans with the system failures.
Introduction:
OE/S process:
It is known as the order entry/sales process. It describes the first four steps of the order-to-cash process.
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The following is a list of 12 control plans from this chapter or from Chapters 8 & 9. These are followed by a list of 10 system failures that have control implications. Match the 10 system failures with a control plan that would best prevent the system failure from occurring. Write one or two sentences explaining each answer. Because there are 12 control plans, you should have two letters left over.
Control Plans
Enter customer order close to where customer order is prepared
Turnaround document
Independent shipping authorization
Populate input screens with master data
One-for-one checking of the goods, picking ticket, and sales order
Preformatted screens
Confirm input acceptance
Reasonableness check
Backup procedures (for data)
Program change controls
Digital signature
Personnel termination controls
System Failures
Handsome Corp. has recently received customer complaints that the goods they receive frequently are not accurate. Sometimes they receive…
The following is a list of six control plans.These are followed by a list of five system failures that have control implications. Match the five system failures with a control plan that would best prevent the system failure from occurring. Also, give a brief (one or two sentences) explanation of your choice. A letter should be used only once, with one letter left over.
Control Plans
Program change controls
Independent validation of vendor invoices
Access control software
Batch control plans
Compare input data with master data (e.g., vendor master data)
Match invoice, PO, and receipt
System Failures
Vendor Invoices are received at Samuel Company via an EDI feed over the Internet. Some of these are fraudulent invoices from bogus vendors.
Vendor invoices are sent to clerks in the AP department at Seneca, Inc., where they are entered once each day to create a file of invoice data that is then processed by the accounts payable program each evening. Several errors have been found in the…
Which of the following is a component of general controls? a. processing controls b. output controls c. back-up and contingency planning d. input controls
Required: choose the correct answer and Justify your answers in at least 6 sentences.
Chapter 10 Solutions
Accounting Information Systems
Ch. 10 - Prob. 1RQCh. 10 - What are the major functions performed by the OE/S...Ch. 10 - With what internal and external entities does the...Ch. 10 - Prob. 4RQCh. 10 - Prob. 5RQCh. 10 - Prob. 6RQCh. 10 - Distinguish buy-side and sell-side systems.Ch. 10 - Prob. 8RQCh. 10 - Prob. 9RQCh. 10 - Prob. 10RQ
Ch. 10 - Prob. 11RQCh. 10 - Prob. 12RQCh. 10 - Prob. 13RQCh. 10 - Prob. 14RQCh. 10 - Describe the impact that entity-level controls...Ch. 10 - Prob. 1DQCh. 10 - Prob. 2DQCh. 10 - Prob. 3DQCh. 10 - Prob. 4DQCh. 10 - Prob. 5DQCh. 10 - Prob. 6DQCh. 10 - An enterprise system supports a business process...Ch. 10 - Among the three functional entities (marketing,...Ch. 10 - The chapter presented a brief example of how the...Ch. 10 - Prob. 3SPCh. 10 - Prob. 4SPCh. 10 - Prob. 5SPCh. 10 - Prob. 6SPCh. 10 - Prob. 3PCh. 10 - Prob. 6P
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- Listed here are 20 control plans discussed in the chapter. On the blank line to the left of each control plan, insert a P (preventive), D (detective), or C (corrective) to classify that control most accurately. If you think that more than one code could apply to a particular plan, insert all appropriate codes and briefly explain your answer:arrow_forwardUsing the following table as a guide, describe for each function A risk (an event or action that will cause the organization to fail to meet its goals/objectives). A control/process or use of technology that will address the risk. Function Risks Controls and Technology Logistics Purchasing Receiving Inventory (Debit ??? (Credit) SP 12-3 The following is a list of six control plans from this chapter or from Chapters 9, 10, and 11. This is followed be a list of five statements describing either the achievement of a control goal (i.e., a system success) or a system deficiency (i.e., a system failure). Match the five control goals or systems deficiencies with a control plan that would best achieve the desired goal or prevent the system deficiency. Each letter may be used only once, with one letter left over. Control Plans File completed and signed receiving report in receiving: Select vendors who can provide goods with appropriate quality Approve purchase…arrow_forwardMatch the two lists, below, by placing the capital letter from List 1 in each of the cells preceding the five descriptions in List 2 to which they best relate. One description in List 2 can be answered with 2 matches from List 1. Therefore, you should have 2 letters left over from List 1. List 1: Concepts A. Application (i.e., automated) control. B. Corrective control. C. Control environment. D. Input validity. E. Input completeness. F. Input accuracy G. Update completeness. H. Efficient use of resources. List 1: Capital letter List 2: Definitions/Descriptions 1. Insurance policy reimburses a company for losses due to a fire in a warehouse. 2. Shipping notices have a serial number that is tracked to ensure that they are all input. 3. Computer reviews each input to ensure that all the required data are included. 4. Inventory movements are tracked with a scanner to reduce manual counting. 5. Purchase orders are signed to approve the purchase.arrow_forward
- Following is a list of eight generic control goals (A-H), followed by eight descriptions of either process failures (i.e., control goals not met) or instances of successful control plans (i.e., plans that helped to achieve controls goals). List the numbers 1 through 8 in the table below. Each number represents one of the described situations on the page below. In the table, next to each number, place the capital letter of the control goal that best matches the situation described. Hint: Some letters may be used more than once in each situation. Conversely, some letters may not be used at all. Control goals: Ensure effectiveness of operations Ensure efficient employment of resources Ensure security of resources Ensure input validity Ensure input completeness Ensure input accuracy Ensure update completeness Ensure update accuracy Situations: Instead of preparing deposit slips by hand, Kaley Company has them generated by the computer. The company does so to speed up the deposit…arrow_forwardThe following is a list of six control plans from this chapter or from Chapter 9 and Chapter 10. These are followed by a list of five statements describing either the achievement of a control goal (i.e., a system success) or a system deficiency (i.e., a system failure). Match the five control goals or system deficiencies with a control plan that would best achieve the desired goal or prevent the system deficiency. A letter may be used only once, with one letter left over. Control Plans Review shipped not billed sales orders Turnaround documents Deposit slip file Procedures for rejected inputs Computer agreement of batch totals Document design Control Goals or System Deficiencies The shipping clerk could not read the quantity picked that had been written on the picking ticket by the warehouse clerks. In a periodic/batch environment, helps to ensure the information system control goal of input completeness of the shipping notices. Helps to ensure that…arrow_forwardAccording to the risk management process in ISO 31000, which of the following is a necessary step in risk assessment? Select one: A. Risk treatment B. Risk transfer C. Risk analysis D. Risk minimisation #### i want answer within one hour,Thanksarrow_forward
- The following is a list of six control plans from this chapter, and these are followed by a list of five definitions or descriptions of control plans. Match the five definitions or descriptions with a control plan that best matches the definition. Because there are six control plans, you should have one letter left over. Control Plans A. Limit checks B. Tickler files C. Public key cryptography D. Compare input data with master data E. One-for-one checking F. Manual reconciliation of batch totals (hash totals) Definitions or Descriptions 1. Determines if a customer number has been input correctly. 2. Ensures that transmitted messages can be read only by authorized receivers. 3. A control plan that confirms a value that was entered is within a valid range. 4. An area (electronic or manual) where documents or other items are stored that need follow-up. 5. Used to detect changes in batches of events to ensure the validity, completeness, and accuracy of the batch.arrow_forwardThe following is a list of six control plans from this chapter, followed by a list of five situations that have control implications. Match each of the five situations with a control plan that would best prevent the system failure from occurring. Because there are six control plans, you should have one letter left over. Control Plans A. Service level agreements B. Clear desk and locked door policy C. User manuals D. Biometric identification systems E. Program change controls F. Personnel termination control plans Control Situations 1. The customer service representatives at Everyday Supplies, a catalog sales company, have been complaining that the computer system response time is very slow. They find themselves apologizing to customers who are waiting on the phone for their orders to be completed. 2. George and Mike have been friends for many years. Henry works in the shipping department at Superior Company, an electronics wholesaler, and Mike is unemployed. To make a little money, Mike borrowed Georges employee badge (it has a magnetic strip on the back to open doors at Superior Company) and used the badge to access the Superior warehouse and steal some electronics gear. 3. At Bedrock Company, most transaction processing is automated. When an inventory item reaches its reorder point, the computer automatically prints a purchase order for the economic order quantity (EOQ). A programmer, who was in collusion with 3D-Arm, Inc., the vendor that supplied several parts, altered the computer program and the inventory master data for those parts. He reduced the EOQ and made certain program alterations, so that items supplied by 3D-Arm were ordered more often than Bedrock required them. 4. The data entry clerk in the accounts payable department at Martini Company did not have detailed instructions for completing the input form for approved vendor invoices. To speed up data entry, he let all of the date information default from the current days date. As a result, several invoices were paid late, and Martini Company lost cash discounts on several other vendor payments. 5. During a normal workday, James, who was not an employee, entered Tortora Companys offices and was able to find and remove some computer printouts containing user IDs and other sensitive information. He later used that information to gain access to Rowleys computer system.arrow_forwardhas hired you to review its sales order procedures for internal control compliance and to make recommendations for changes. You are required to:a. Create a data flow diagram of the current system. b. Create a system flowchart of the existing system. c. Analyze the internal control weaknesses in the system. ; andd. Prepare a system flowchart of a redesigned computer-based systemarrow_forward
- General Controls. Indicate the benefits of each of the following examples of general controls. a. Echo checks are designed and built into the computer by the manufacturer.b. The company schedules regular maintenance on its computer hardware.c. The company involves users in its design of programs and selection of prepackaged software and programs.d. New programs are tested and validated prior to being implemented.e. Documentation is required prior to modifying existing programs using “emergency”change orders.f. The duties of system analysts, programmers, and computer operators are appropriatelyseparated.g. Appropriate backup and data retention policies are implemented.h. The access rights granted to employees are periodically reviewed and evaluated, giving consideration to known changes resulting from promotions and transfers within the company.arrow_forwardINTERNAL CONTROLS AND FLOWCHART ANALYSIS a. Identify the physical control weaknesses depicted in theflowchart for Problem 2.b. Describe the IT controls that should be in place in this system.arrow_forwardc. Analyze the phrysical internal control weaknewesin the systemd. (Optional) Prepare a system Mowchart of a rode-signed computer- based system that resolves thecontrol acakneses that you identified._ Explainyour solution.arrow_forward
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