The control plan for the given system failure. Introduction: Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

Question

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Answer 1

Question

Chapter 12, Problem 4P

1)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

1)

Expert Solution

Explanation of Solution

Given system failure:

Inventory shortages have been discovered at Company B by the warehouse managers. They realized that the goods have arrived in the warehouse while investigating the paperwork.

Determine the control plan for the given system failure:

Perimeter and building controls: Accessing control over the warehouse building helps to prevent the losses.

2)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

2)

Expert Solution

Explanation of Solution

Given system failure:

The vendors claimed that they are billing for the goods they have shipped. However, the accounts payable clerks at Company G have trouble in reconciling the quantities as received and the quantities on invoices sent by the vendors.

Determine the control plan for the given system failure:

Count goods and compare to vendor packing slip: Vendor packing slip should be compared with the goods that are counted.

3)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

3)

Expert Solution

Explanation of Solution

Given system failure:

Person C ordered unneeded inventory items from the company for which she is the owner.

Determine the control plan for the given system failure:

A written code of conduct: The buyers should sign in a written code of conduct of the firm to avoid conflict of interest between their financial interest and responsibility.

4)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

4)

Expert Solution

Explanation of Solution

Given system failure:

Person D is working in the receiving department. He once received goods and he is unable to find PO for the goods. Hence, he created PO and received the good. However, later he found that the firm never ordered the goods.

Determine the control plan for the given system failure:

Independent authorization to record receipt: There must be a purchase order on file and the person in logistics should not create the PO.

5)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

5)

Expert Solution

Explanation of Solution

Given system failure:

Person K created a vendor record for Company E, as she is in need to buy a part from Company E. Afterwards, others began to use Company E for other purchases.

Determine the control plan for the given system failure:

Independent vendor master data maintenance: Vendor master data should be maintained. The firm should need a process to approve the vendors to find that they can deliver goods with the prices.

6)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

6)

Expert Solution

Explanation of Solution

Given system failure:

When gotten into some financial difficulties, Person S who is working in Company L started to work for Company H. Person S created PO from Company H and recorded a receipt. However, no goods were received. Afterward, Company H sends a bill and gets paid from Company L.

Determine the control plan for the given system failure:

Segregate warehouse and receiving functions: The warehouse and receiving functions should be segregated.

7)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

7)

Expert Solution

Explanation of Solution

Given system failure:

At Company W, there are discrepancies between the items ordered and recorded that includes wrong quantities and wrong items.

Determine the control plan for the given system failure:

Compare PO data to input receipt data: The purchase order should be matched with the invoice received for the order

8)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

8)

Expert Solution

Explanation of Solution

Given system failure:

Most of the times, Company S would run out of inventory of some items. They investigated and found that the PO was issued but items are not received. They have also noted that these delayed deliveries and poor performance are from the same vendors.

Determine the control plan for the given system failure:

Compare vendors for price, terms, quality, and availability: Available vendors should be compared with respect to the price, terms, availability, and quality. Hence, vendors who can provide the best services can be selected.

9)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

9)

Expert Solution

Explanation of Solution

Given system failure:

The vendors of Company M received POs that seemed to be from the firm but actually bogus. Usually, Company M uses the internet to send purchase orders.

Determine the control plan for the given system failure:

Digital signature: Digital signatures make sure that there is only authorized access to the computer.

10)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

10)

Expert Solution

Explanation of Solution

Given system failure:

There were several discrepancies in inventory data of Company D. The inventory in the shelf has not reflected in the balances.

Determine the control plan for the given system failure:

Monitor open PO: Open purchase orders should be monitored to avoid discrepancies.

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Students have asked these similar questions

In terms of effectiveness and efficiency of operations, as well as of meeting the generic information system control goals of validity, completeness, and accuracy, what are the arguments for and against each of the following? a )Sending a copy of the PO from the purchasing department to the receiving department. b) Having the quantity ordered field “blinded” on the receiving department copy of the PO.

Answer the following questions. a. Which department is responsible for initiating the purchase of materials? b. What is the name of the document generated by the department identified in (a) above? c. Typically, multiple copies of a purchase order are prepared. One copy should go to the vendor, and one is retained in the purchasing department. To achieve proper control, which other departments should receive copies of the purchase order? d. What documents does the accounts payable clerk review before setting up a liability? e. Which document transfers responsibility for goods sold to a common carrier?

The computer processing portion of a sales order system is represented by the flowchart. Answer the following questions.a. What type of data processing system is this? Explain, and be specific.b. The auditor suggests that this system can be greatly simplified by changing to direct access files. Explain the major operational changes that would occur in the system if this were done.c. The auditor warns of control implications from this change that must be considered. Explain the nature of the control implications.d. Sketch a flowchart (the computerized portion only) of the proposed new system. Use correct symbols and label the diagram.

Answer 2

Question

Chapter 12, Problem 4P

1)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

1)

Expert Solution

Explanation of Solution

Given system failure:

Inventory shortages have been discovered at Company B by the warehouse managers. They realized that the goods have arrived in the warehouse while investigating the paperwork.

Determine the control plan for the given system failure:

Perimeter and building controls: Accessing control over the warehouse building helps to prevent the losses.

2)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

2)

Expert Solution

Explanation of Solution

Given system failure:

The vendors claimed that they are billing for the goods they have shipped. However, the accounts payable clerks at Company G have trouble in reconciling the quantities as received and the quantities on invoices sent by the vendors.

Determine the control plan for the given system failure:

Count goods and compare to vendor packing slip: Vendor packing slip should be compared with the goods that are counted.

3)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

3)

Expert Solution

Explanation of Solution

Given system failure:

Person C ordered unneeded inventory items from the company for which she is the owner.

Determine the control plan for the given system failure:

A written code of conduct: The buyers should sign in a written code of conduct of the firm to avoid conflict of interest between their financial interest and responsibility.

4)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

4)

Expert Solution

Explanation of Solution

Given system failure:

Person D is working in the receiving department. He once received goods and he is unable to find PO for the goods. Hence, he created PO and received the good. However, later he found that the firm never ordered the goods.

Determine the control plan for the given system failure:

Independent authorization to record receipt: There must be a purchase order on file and the person in logistics should not create the PO.

5)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

5)

Expert Solution

Explanation of Solution

Given system failure:

Person K created a vendor record for Company E, as she is in need to buy a part from Company E. Afterwards, others began to use Company E for other purchases.

Determine the control plan for the given system failure:

Independent vendor master data maintenance: Vendor master data should be maintained. The firm should need a process to approve the vendors to find that they can deliver goods with the prices.

6)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

6)

Expert Solution

Explanation of Solution

Given system failure:

When gotten into some financial difficulties, Person S who is working in Company L started to work for Company H. Person S created PO from Company H and recorded a receipt. However, no goods were received. Afterward, Company H sends a bill and gets paid from Company L.

Determine the control plan for the given system failure:

Segregate warehouse and receiving functions: The warehouse and receiving functions should be segregated.

7)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

7)

Expert Solution

Explanation of Solution

Given system failure:

At Company W, there are discrepancies between the items ordered and recorded that includes wrong quantities and wrong items.

Determine the control plan for the given system failure:

Compare PO data to input receipt data: The purchase order should be matched with the invoice received for the order

8)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

8)

Expert Solution

Explanation of Solution

Given system failure:

Most of the times, Company S would run out of inventory of some items. They investigated and found that the PO was issued but items are not received. They have also noted that these delayed deliveries and poor performance are from the same vendors.

Determine the control plan for the given system failure:

Compare vendors for price, terms, quality, and availability: Available vendors should be compared with respect to the price, terms, availability, and quality. Hence, vendors who can provide the best services can be selected.

9)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

9)

Expert Solution

Explanation of Solution

Given system failure:

The vendors of Company M received POs that seemed to be from the firm but actually bogus. Usually, Company M uses the internet to send purchase orders.

Determine the control plan for the given system failure:

Digital signature: Digital signatures make sure that there is only authorized access to the computer.

10)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

10)

Expert Solution

Explanation of Solution

Given system failure:

There were several discrepancies in inventory data of Company D. The inventory in the shelf has not reflected in the balances.

Determine the control plan for the given system failure:

Monitor open PO: Open purchase orders should be monitored to avoid discrepancies.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 12, Problem 4P

1)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

1)

Expert Solution

Explanation of Solution

Given system failure:

Inventory shortages have been discovered at Company B by the warehouse managers. They realized that the goods have arrived in the warehouse while investigating the paperwork.

Determine the control plan for the given system failure:

Perimeter and building controls: Accessing control over the warehouse building helps to prevent the losses.

2)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

2)

Expert Solution

Explanation of Solution

Given system failure:

The vendors claimed that they are billing for the goods they have shipped. However, the accounts payable clerks at Company G have trouble in reconciling the quantities as received and the quantities on invoices sent by the vendors.

Determine the control plan for the given system failure:

Count goods and compare to vendor packing slip: Vendor packing slip should be compared with the goods that are counted.

3)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

3)

Expert Solution

Explanation of Solution

Given system failure:

Person C ordered unneeded inventory items from the company for which she is the owner.

Determine the control plan for the given system failure:

A written code of conduct: The buyers should sign in a written code of conduct of the firm to avoid conflict of interest between their financial interest and responsibility.

4)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

4)

Expert Solution

Explanation of Solution

Given system failure:

Person D is working in the receiving department. He once received goods and he is unable to find PO for the goods. Hence, he created PO and received the good. However, later he found that the firm never ordered the goods.

Determine the control plan for the given system failure:

Independent authorization to record receipt: There must be a purchase order on file and the person in logistics should not create the PO.

5)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

5)

Expert Solution

Explanation of Solution

Given system failure:

Person K created a vendor record for Company E, as she is in need to buy a part from Company E. Afterwards, others began to use Company E for other purchases.

Determine the control plan for the given system failure:

Independent vendor master data maintenance: Vendor master data should be maintained. The firm should need a process to approve the vendors to find that they can deliver goods with the prices.

6)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

6)

Expert Solution

Explanation of Solution

Given system failure:

When gotten into some financial difficulties, Person S who is working in Company L started to work for Company H. Person S created PO from Company H and recorded a receipt. However, no goods were received. Afterward, Company H sends a bill and gets paid from Company L.

Determine the control plan for the given system failure:

Segregate warehouse and receiving functions: The warehouse and receiving functions should be segregated.

7)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

7)

Expert Solution

Explanation of Solution

Given system failure:

At Company W, there are discrepancies between the items ordered and recorded that includes wrong quantities and wrong items.

Determine the control plan for the given system failure:

Compare PO data to input receipt data: The purchase order should be matched with the invoice received for the order

8)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

8)

Expert Solution

Explanation of Solution

Given system failure:

Most of the times, Company S would run out of inventory of some items. They investigated and found that the PO was issued but items are not received. They have also noted that these delayed deliveries and poor performance are from the same vendors.

Determine the control plan for the given system failure:

Compare vendors for price, terms, quality, and availability: Available vendors should be compared with respect to the price, terms, availability, and quality. Hence, vendors who can provide the best services can be selected.

9)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

9)

Expert Solution

Explanation of Solution

Given system failure:

The vendors of Company M received POs that seemed to be from the firm but actually bogus. Usually, Company M uses the internet to send purchase orders.

Determine the control plan for the given system failure:

Digital signature: Digital signatures make sure that there is only authorized access to the computer.

10)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

10)

Expert Solution

Explanation of Solution

Given system failure:

There were several discrepancies in inventory data of Company D. The inventory in the shelf has not reflected in the balances.

Determine the control plan for the given system failure:

Monitor open PO: Open purchase orders should be monitored to avoid discrepancies.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 12, Problem 4P

1)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

1)

Expert Solution

Explanation of Solution

Given system failure:

Inventory shortages have been discovered at Company B by the warehouse managers. They realized that the goods have arrived in the warehouse while investigating the paperwork.

Determine the control plan for the given system failure:

Perimeter and building controls: Accessing control over the warehouse building helps to prevent the losses.

2)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

2)

Expert Solution

Explanation of Solution

Given system failure:

The vendors claimed that they are billing for the goods they have shipped. However, the accounts payable clerks at Company G have trouble in reconciling the quantities as received and the quantities on invoices sent by the vendors.

Determine the control plan for the given system failure:

Count goods and compare to vendor packing slip: Vendor packing slip should be compared with the goods that are counted.

3)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

3)

Expert Solution

Explanation of Solution

Given system failure:

Person C ordered unneeded inventory items from the company for which she is the owner.

Determine the control plan for the given system failure:

A written code of conduct: The buyers should sign in a written code of conduct of the firm to avoid conflict of interest between their financial interest and responsibility.

4)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

4)

Expert Solution

Explanation of Solution

Given system failure:

Person D is working in the receiving department. He once received goods and he is unable to find PO for the goods. Hence, he created PO and received the good. However, later he found that the firm never ordered the goods.

Determine the control plan for the given system failure:

Independent authorization to record receipt: There must be a purchase order on file and the person in logistics should not create the PO.

5)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

5)

Expert Solution

Explanation of Solution

Given system failure:

Person K created a vendor record for Company E, as she is in need to buy a part from Company E. Afterwards, others began to use Company E for other purchases.

Determine the control plan for the given system failure:

Independent vendor master data maintenance: Vendor master data should be maintained. The firm should need a process to approve the vendors to find that they can deliver goods with the prices.

6)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

6)

Expert Solution

Explanation of Solution

Given system failure:

When gotten into some financial difficulties, Person S who is working in Company L started to work for Company H. Person S created PO from Company H and recorded a receipt. However, no goods were received. Afterward, Company H sends a bill and gets paid from Company L.

Determine the control plan for the given system failure:

Segregate warehouse and receiving functions: The warehouse and receiving functions should be segregated.

7)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

7)

Expert Solution

Explanation of Solution

Given system failure:

At Company W, there are discrepancies between the items ordered and recorded that includes wrong quantities and wrong items.

Determine the control plan for the given system failure:

Compare PO data to input receipt data: The purchase order should be matched with the invoice received for the order

8)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

8)

Expert Solution

Explanation of Solution

Given system failure:

Most of the times, Company S would run out of inventory of some items. They investigated and found that the PO was issued but items are not received. They have also noted that these delayed deliveries and poor performance are from the same vendors.

Determine the control plan for the given system failure:

Compare vendors for price, terms, quality, and availability: Available vendors should be compared with respect to the price, terms, availability, and quality. Hence, vendors who can provide the best services can be selected.

9)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

9)

Expert Solution

Explanation of Solution

Given system failure:

The vendors of Company M received POs that seemed to be from the firm but actually bogus. Usually, Company M uses the internet to send purchase orders.

Determine the control plan for the given system failure:

Digital signature: Digital signatures make sure that there is only authorized access to the computer.

10)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

10)

Expert Solution

Explanation of Solution

Given system failure:

There were several discrepancies in inventory data of Company D. The inventory in the shelf has not reflected in the balances.

Determine the control plan for the given system failure:

Monitor open PO: Open purchase orders should be monitored to avoid discrepancies.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 12, Problem 4P

1)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

1)

Expert Solution

Explanation of Solution

Given system failure:

Inventory shortages have been discovered at Company B by the warehouse managers. They realized that the goods have arrived in the warehouse while investigating the paperwork.

Determine the control plan for the given system failure:

Perimeter and building controls: Accessing control over the warehouse building helps to prevent the losses.

2)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

2)

Expert Solution

Explanation of Solution

Given system failure:

The vendors claimed that they are billing for the goods they have shipped. However, the accounts payable clerks at Company G have trouble in reconciling the quantities as received and the quantities on invoices sent by the vendors.

Determine the control plan for the given system failure:

Count goods and compare to vendor packing slip: Vendor packing slip should be compared with the goods that are counted.

3)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

3)

Expert Solution

Explanation of Solution

Given system failure:

Person C ordered unneeded inventory items from the company for which she is the owner.

Determine the control plan for the given system failure:

A written code of conduct: The buyers should sign in a written code of conduct of the firm to avoid conflict of interest between their financial interest and responsibility.

4)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

4)

Expert Solution

Explanation of Solution

Given system failure:

Person D is working in the receiving department. He once received goods and he is unable to find PO for the goods. Hence, he created PO and received the good. However, later he found that the firm never ordered the goods.

Determine the control plan for the given system failure:

Independent authorization to record receipt: There must be a purchase order on file and the person in logistics should not create the PO.

5)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

5)

Expert Solution

Explanation of Solution

Given system failure:

Person K created a vendor record for Company E, as she is in need to buy a part from Company E. Afterwards, others began to use Company E for other purchases.

Determine the control plan for the given system failure:

Independent vendor master data maintenance: Vendor master data should be maintained. The firm should need a process to approve the vendors to find that they can deliver goods with the prices.

6)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

6)

Expert Solution

Explanation of Solution

Given system failure:

When gotten into some financial difficulties, Person S who is working in Company L started to work for Company H. Person S created PO from Company H and recorded a receipt. However, no goods were received. Afterward, Company H sends a bill and gets paid from Company L.

Determine the control plan for the given system failure:

Segregate warehouse and receiving functions: The warehouse and receiving functions should be segregated.

7)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

7)

Expert Solution

Explanation of Solution

Given system failure:

At Company W, there are discrepancies between the items ordered and recorded that includes wrong quantities and wrong items.

Determine the control plan for the given system failure:

Compare PO data to input receipt data: The purchase order should be matched with the invoice received for the order

8)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

8)

Expert Solution

Explanation of Solution

Given system failure:

Most of the times, Company S would run out of inventory of some items. They investigated and found that the PO was issued but items are not received. They have also noted that these delayed deliveries and poor performance are from the same vendors.

Determine the control plan for the given system failure:

Compare vendors for price, terms, quality, and availability: Available vendors should be compared with respect to the price, terms, availability, and quality. Hence, vendors who can provide the best services can be selected.

9)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

9)

Expert Solution

Explanation of Solution

Given system failure:

The vendors of Company M received POs that seemed to be from the firm but actually bogus. Usually, Company M uses the internet to send purchase orders.

Determine the control plan for the given system failure:

Digital signature: Digital signatures make sure that there is only authorized access to the computer.

10)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

10)

Expert Solution

Explanation of Solution

Given system failure:

There were several discrepancies in inventory data of Company D. The inventory in the shelf has not reflected in the balances.

Determine the control plan for the given system failure:

Monitor open PO: Open purchase orders should be monitored to avoid discrepancies.

Answer 6

Chapter 12, Problem 4P

1)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

1)

Expert Solution

Explanation of Solution

Given system failure:

Inventory shortages have been discovered at Company B by the warehouse managers. They realized that the goods have arrived in the warehouse while investigating the paperwork.

Determine the control plan for the given system failure:

Perimeter and building controls: Accessing control over the warehouse building helps to prevent the losses.

Answer 7

Chapter 12, Problem 4P

1)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

Answer 8

1)

Expert Solution

Explanation of Solution

Given system failure:

Inventory shortages have been discovered at Company B by the warehouse managers. They realized that the goods have arrived in the warehouse while investigating the paperwork.

Determine the control plan for the given system failure:

Perimeter and building controls: Accessing control over the warehouse building helps to prevent the losses.

Answer 9

1)

Expert Solution

Answer 10

1)

Expert Solution

Answer 11

Expert Solution

Answer 12

2)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

2)

Expert Solution

Explanation of Solution

Given system failure:

The vendors claimed that they are billing for the goods they have shipped. However, the accounts payable clerks at Company G have trouble in reconciling the quantities as received and the quantities on invoices sent by the vendors.

Determine the control plan for the given system failure:

Count goods and compare to vendor packing slip: Vendor packing slip should be compared with the goods that are counted.

Answer 13

2)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

Answer 14

2)

Expert Solution

Explanation of Solution

Given system failure:

The vendors claimed that they are billing for the goods they have shipped. However, the accounts payable clerks at Company G have trouble in reconciling the quantities as received and the quantities on invoices sent by the vendors.

Determine the control plan for the given system failure:

Count goods and compare to vendor packing slip: Vendor packing slip should be compared with the goods that are counted.

Answer 15

2)

Expert Solution

Answer 16

2)

Expert Solution

Answer 17

Expert Solution

Answer 18

3)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

3)

Expert Solution

Explanation of Solution

Given system failure:

Person C ordered unneeded inventory items from the company for which she is the owner.

Determine the control plan for the given system failure:

A written code of conduct: The buyers should sign in a written code of conduct of the firm to avoid conflict of interest between their financial interest and responsibility.

Answer 19

3)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

Answer 20

3)

Expert Solution

Explanation of Solution

Given system failure:

Person C ordered unneeded inventory items from the company for which she is the owner.

Determine the control plan for the given system failure:

A written code of conduct: The buyers should sign in a written code of conduct of the firm to avoid conflict of interest between their financial interest and responsibility.

Answer 21

3)

Expert Solution

Answer 22

3)

Expert Solution

Answer 23

Expert Solution

Answer 24

4)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

4)

Expert Solution

Explanation of Solution

Given system failure:

Person D is working in the receiving department. He once received goods and he is unable to find PO for the goods. Hence, he created PO and received the good. However, later he found that the firm never ordered the goods.

Determine the control plan for the given system failure:

Independent authorization to record receipt: There must be a purchase order on file and the person in logistics should not create the PO.

Answer 25

4)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

Answer 26

4)

Expert Solution

Explanation of Solution

Given system failure:

Person D is working in the receiving department. He once received goods and he is unable to find PO for the goods. Hence, he created PO and received the good. However, later he found that the firm never ordered the goods.

Determine the control plan for the given system failure:

Independent authorization to record receipt: There must be a purchase order on file and the person in logistics should not create the PO.

Answer 27

4)

Expert Solution

Answer 28

4)

Expert Solution

Answer 29

Expert Solution

Answer 30

5)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

5)

Expert Solution

Explanation of Solution

Given system failure:

Person K created a vendor record for Company E, as she is in need to buy a part from Company E. Afterwards, others began to use Company E for other purchases.

Determine the control plan for the given system failure:

Independent vendor master data maintenance: Vendor master data should be maintained. The firm should need a process to approve the vendors to find that they can deliver goods with the prices.

Answer 31

5)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

Answer 32

5)

Expert Solution

Explanation of Solution

Given system failure:

Person K created a vendor record for Company E, as she is in need to buy a part from Company E. Afterwards, others began to use Company E for other purchases.

Determine the control plan for the given system failure:

Independent vendor master data maintenance: Vendor master data should be maintained. The firm should need a process to approve the vendors to find that they can deliver goods with the prices.

Answer 33

5)

Expert Solution

Answer 34

5)

Expert Solution

Answer 35

Expert Solution

Answer 36

6)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

6)

Expert Solution

Explanation of Solution

Given system failure:

When gotten into some financial difficulties, Person S who is working in Company L started to work for Company H. Person S created PO from Company H and recorded a receipt. However, no goods were received. Afterward, Company H sends a bill and gets paid from Company L.

Determine the control plan for the given system failure:

Segregate warehouse and receiving functions: The warehouse and receiving functions should be segregated.

Answer 37

6)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

Answer 38

6)

Expert Solution

Explanation of Solution

Given system failure:

When gotten into some financial difficulties, Person S who is working in Company L started to work for Company H. Person S created PO from Company H and recorded a receipt. However, no goods were received. Afterward, Company H sends a bill and gets paid from Company L.

Determine the control plan for the given system failure:

Segregate warehouse and receiving functions: The warehouse and receiving functions should be segregated.

Answer 39

6)

Expert Solution

Answer 40

6)

Expert Solution

Answer 41

Expert Solution

Answer 42

7)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

7)

Expert Solution

Explanation of Solution

Given system failure:

At Company W, there are discrepancies between the items ordered and recorded that includes wrong quantities and wrong items.

Determine the control plan for the given system failure:

Compare PO data to input receipt data: The purchase order should be matched with the invoice received for the order

Answer 43

7)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

Answer 44

7)

Expert Solution

Explanation of Solution

Given system failure:

At Company W, there are discrepancies between the items ordered and recorded that includes wrong quantities and wrong items.

Determine the control plan for the given system failure:

Compare PO data to input receipt data: The purchase order should be matched with the invoice received for the order

Answer 45

7)

Expert Solution

Answer 46

7)

Expert Solution

Answer 47

Expert Solution

Answer 48

8)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

8)

Expert Solution

Explanation of Solution

Given system failure:

Most of the times, Company S would run out of inventory of some items. They investigated and found that the PO was issued but items are not received. They have also noted that these delayed deliveries and poor performance are from the same vendors.

Determine the control plan for the given system failure:

Compare vendors for price, terms, quality, and availability: Available vendors should be compared with respect to the price, terms, availability, and quality. Hence, vendors who can provide the best services can be selected.

Answer 49

8)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

Answer 50

8)

Expert Solution

Explanation of Solution

Given system failure:

Most of the times, Company S would run out of inventory of some items. They investigated and found that the PO was issued but items are not received. They have also noted that these delayed deliveries and poor performance are from the same vendors.

Determine the control plan for the given system failure:

Compare vendors for price, terms, quality, and availability: Available vendors should be compared with respect to the price, terms, availability, and quality. Hence, vendors who can provide the best services can be selected.

Answer 51

8)

Expert Solution

Answer 52

8)

Expert Solution

Answer 53

Expert Solution

Answer 54

9)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

9)

Expert Solution

Explanation of Solution

Given system failure:

The vendors of Company M received POs that seemed to be from the firm but actually bogus. Usually, Company M uses the internet to send purchase orders.

Determine the control plan for the given system failure:

Digital signature: Digital signatures make sure that there is only authorized access to the computer.

Answer 55

9)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

Answer 56

9)

Expert Solution

Explanation of Solution

Given system failure:

The vendors of Company M received POs that seemed to be from the firm but actually bogus. Usually, Company M uses the internet to send purchase orders.

Determine the control plan for the given system failure:

Digital signature: Digital signatures make sure that there is only authorized access to the computer.

Answer 57

9)

Expert Solution

Answer 58

9)

Expert Solution

Answer 59

Expert Solution

Answer 60

10)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

10)

Expert Solution

Explanation of Solution

Given system failure:

There were several discrepancies in inventory data of Company D. The inventory in the shelf has not reflected in the balances.

Determine the control plan for the given system failure:

Monitor open PO: Open purchase orders should be monitored to avoid discrepancies.

Answer 61

10)

Summary Introduction

To determine: The control plan for the given system failure.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

Answer 62

10)

Expert Solution

Explanation of Solution

Given system failure:

There were several discrepancies in inventory data of Company D. The inventory in the shelf has not reflected in the balances.

Determine the control plan for the given system failure:

Monitor open PO: Open purchase orders should be monitored to avoid discrepancies.

Answer 63

10)

Expert Solution

Answer 64

10)

Expert Solution

Answer 65

Expert Solution

Answer 66

Ch. 12 - Prob. 1RQ Ch. 12 - What primary functions does the purchasing process...Ch. 12 - Prob. 3RQ Ch. 12 - What are the fundamental responsibilities of each...Ch. 12 - Describe supply chain management (SCM).Ch. 12 - Prob. 6RQ Ch. 12 - Prob. 7RQ Ch. 12 - Prob. 8RQ Ch. 12 - Prob. 9RQ Ch. 12 - Prob. 10RQ

The control plan for the given system failure. Introduction: Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

Explanation of Solution

Explanation of Solution

Explanation of Solution

Explanation of Solution

Explanation of Solution

Explanation of Solution

Explanation of Solution

Explanation of Solution

Explanation of Solution

Explanation of Solution

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