The control plan for each process failure given. 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

Want to see more full solutions like this?

Answer 1

Question

Chapter 13, Problem 4P

1)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

In the accounts payable master data, a vendor invoice was posted to the wrong vendor record, as the data entry clerk transferred digits in the vendor identification number.

Determine the control plan for each process failure given:

Check digit (a programmed edit): Programmed edit checks help to identify the errors in the input document, then the clerk will take corrective actions based on the identified errors. it helps to obey with balance agreement and saves time.

The edits in the input document help to identify enormous errors, which would result in improved accuracy and it ensure input completeness.

2)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

Invoice documents were not recorded.

Determine the control plan for each process failure given:

Reconcile batch totals: If the document count is merged before entering the total count of the documents accepted by the system then there will be evidence to make sure that the input is valid and accurate.

3)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

Before running the disbursement programs, the amount of cash disbursements should be the cash disbursements that was authorized by the clerk.

Determine the control plan for each process failure given:

Run-to-run totals: The batch totals for approved payments should be created by the cash disbursement clerk and it must be compared with the actual amount paid.

4)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

Based on the vendor payment terms and due dates, the accounts payable clerk prepares a list of proposed payments. Due to the lack of funds, cash disbursement does not approve most of the proposed payment.

Determine the control plan for each process failure given:

Cash planning report: On a regular basis, the treasurer should produce and review an aging of accounts payable to make sure that enough funds are available to pay obligations.

5)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

The invoice was paid its full amount. However, the vendor invoiced for good, which was not delivered.

Determine the control plan for each process failure given:

One-for-one checking of the receiving report and the invoice: One-for-one checking is the control, which is used to compare the source document with the output of the process. Here, it helps to compare the receiving report and the invoice.

6)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

The vendor invoice was paid. However, the vendor charged excess unit prices than the price that had been negotiated.

Determine the control plan for each process failure given:

One-for-one checking of the purchase order and the vendor invoice: One-for-one checking is the control, which is used to compare the source document with the output of the process. Here, it helps to compare the purchase order and the vendor invoice.

7)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

The invoice was paid twice, as the vendor submitted a duplicate invoice.

Determine the control plan for each process failure given:

Match invoice with PO: The purchase order should be matched with the invoice received for the order.

8)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

The total of vendor payable balances that are outstanding shows the large difference from general ledger’s balance due to miscellaneous errors.

Determine the control plan for each process failure given:

Reconcile run-to-run totals: The reconciliation of batch totals or the run-to-run totals would detect the errors if the general ledger is updated as a batch.

9)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

The organization paid for the received invoices. However, they paid for the things that were never purchased.

Determine the control plan for each process failure given:

Match invoice with PO and receiving report: The invoice received from the vendor should be matched with the purchase order and receiving report.

10)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

The particular vendor would receipt the goods always on time. However, the organization failed to obtain cash discounts, as the invoices are after late from the vendor.

Determine the control plan for each process failure given:

Tickler file of open purchase orders and receiving reports: Tickler files are an electronic or manual area where the documents, which need follow-up will be stored.

Want to see more full solutions like this?

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

Students have asked these similar questions

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…

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…

7.8 Tralor Corporation manufactures and sells several different lines of small elec- tric components. Its internal audit department completed an audit of its expen- diture processes. Part of the audit involved a review of the internal accounting controls for payables, including the controls over the authorization of transactions, accounting for transactions, and the protection of assets. The auditors noted the following items: 1. Routine purchases are initiated by inventory control notifying the purchasing de- partment of the need to buy goods. The purchasing department fills out a prenum- bered purchase order and gets it approved by the purchasing manager. The original of the five-part purchase order goes to the vendor. The other four copies are for pur- chasing, the user department, receiving for use as a receiving report, and accounts payable. 2. For efficiency and effectiveness, purchases of specialized goods and services are ne- gotiated directly between the user department and…

Answer 2

Question

Chapter 13, Problem 4P

1)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

In the accounts payable master data, a vendor invoice was posted to the wrong vendor record, as the data entry clerk transferred digits in the vendor identification number.

Determine the control plan for each process failure given:

Check digit (a programmed edit): Programmed edit checks help to identify the errors in the input document, then the clerk will take corrective actions based on the identified errors. it helps to obey with balance agreement and saves time.

The edits in the input document help to identify enormous errors, which would result in improved accuracy and it ensure input completeness.

2)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

Invoice documents were not recorded.

Determine the control plan for each process failure given:

Reconcile batch totals: If the document count is merged before entering the total count of the documents accepted by the system then there will be evidence to make sure that the input is valid and accurate.

3)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

Before running the disbursement programs, the amount of cash disbursements should be the cash disbursements that was authorized by the clerk.

Determine the control plan for each process failure given:

Run-to-run totals: The batch totals for approved payments should be created by the cash disbursement clerk and it must be compared with the actual amount paid.

4)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

Based on the vendor payment terms and due dates, the accounts payable clerk prepares a list of proposed payments. Due to the lack of funds, cash disbursement does not approve most of the proposed payment.

Determine the control plan for each process failure given:

Cash planning report: On a regular basis, the treasurer should produce and review an aging of accounts payable to make sure that enough funds are available to pay obligations.

5)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

The invoice was paid its full amount. However, the vendor invoiced for good, which was not delivered.

Determine the control plan for each process failure given:

One-for-one checking of the receiving report and the invoice: One-for-one checking is the control, which is used to compare the source document with the output of the process. Here, it helps to compare the receiving report and the invoice.

6)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

The vendor invoice was paid. However, the vendor charged excess unit prices than the price that had been negotiated.

Determine the control plan for each process failure given:

One-for-one checking of the purchase order and the vendor invoice: One-for-one checking is the control, which is used to compare the source document with the output of the process. Here, it helps to compare the purchase order and the vendor invoice.

7)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

The invoice was paid twice, as the vendor submitted a duplicate invoice.

Determine the control plan for each process failure given:

Match invoice with PO: The purchase order should be matched with the invoice received for the order.

8)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

The total of vendor payable balances that are outstanding shows the large difference from general ledger’s balance due to miscellaneous errors.

Determine the control plan for each process failure given:

Reconcile run-to-run totals: The reconciliation of batch totals or the run-to-run totals would detect the errors if the general ledger is updated as a batch.

9)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

The organization paid for the received invoices. However, they paid for the things that were never purchased.

Determine the control plan for each process failure given:

Match invoice with PO and receiving report: The invoice received from the vendor should be matched with the purchase order and receiving report.

10)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

The particular vendor would receipt the goods always on time. However, the organization failed to obtain cash discounts, as the invoices are after late from the vendor.

Determine the control plan for each process failure given:

Tickler file of open purchase orders and receiving reports: Tickler files are an electronic or manual area where the documents, which need follow-up will be stored.

Want to see more full solutions like this?

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

Answer 3

Question

Chapter 13, Problem 4P

1)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

In the accounts payable master data, a vendor invoice was posted to the wrong vendor record, as the data entry clerk transferred digits in the vendor identification number.

Determine the control plan for each process failure given:

Check digit (a programmed edit): Programmed edit checks help to identify the errors in the input document, then the clerk will take corrective actions based on the identified errors. it helps to obey with balance agreement and saves time.

The edits in the input document help to identify enormous errors, which would result in improved accuracy and it ensure input completeness.

2)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

Invoice documents were not recorded.

Determine the control plan for each process failure given:

Reconcile batch totals: If the document count is merged before entering the total count of the documents accepted by the system then there will be evidence to make sure that the input is valid and accurate.

3)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

Before running the disbursement programs, the amount of cash disbursements should be the cash disbursements that was authorized by the clerk.

Determine the control plan for each process failure given:

Run-to-run totals: The batch totals for approved payments should be created by the cash disbursement clerk and it must be compared with the actual amount paid.

4)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

Based on the vendor payment terms and due dates, the accounts payable clerk prepares a list of proposed payments. Due to the lack of funds, cash disbursement does not approve most of the proposed payment.

Determine the control plan for each process failure given:

Cash planning report: On a regular basis, the treasurer should produce and review an aging of accounts payable to make sure that enough funds are available to pay obligations.

5)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

The invoice was paid its full amount. However, the vendor invoiced for good, which was not delivered.

Determine the control plan for each process failure given:

One-for-one checking of the receiving report and the invoice: One-for-one checking is the control, which is used to compare the source document with the output of the process. Here, it helps to compare the receiving report and the invoice.

6)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

The vendor invoice was paid. However, the vendor charged excess unit prices than the price that had been negotiated.

Determine the control plan for each process failure given:

One-for-one checking of the purchase order and the vendor invoice: One-for-one checking is the control, which is used to compare the source document with the output of the process. Here, it helps to compare the purchase order and the vendor invoice.

7)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

The invoice was paid twice, as the vendor submitted a duplicate invoice.

Determine the control plan for each process failure given:

Match invoice with PO: The purchase order should be matched with the invoice received for the order.

8)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

The total of vendor payable balances that are outstanding shows the large difference from general ledger’s balance due to miscellaneous errors.

Determine the control plan for each process failure given:

Reconcile run-to-run totals: The reconciliation of batch totals or the run-to-run totals would detect the errors if the general ledger is updated as a batch.

9)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

The organization paid for the received invoices. However, they paid for the things that were never purchased.

Determine the control plan for each process failure given:

Match invoice with PO and receiving report: The invoice received from the vendor should be matched with the purchase order and receiving report.

10)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

The particular vendor would receipt the goods always on time. However, the organization failed to obtain cash discounts, as the invoices are after late from the vendor.

Determine the control plan for each process failure given:

Tickler file of open purchase orders and receiving reports: Tickler files are an electronic or manual area where the documents, which need follow-up will be stored.

Want to see more full solutions like this?

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

Answer 4

Question

Chapter 13, Problem 4P

1)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

In the accounts payable master data, a vendor invoice was posted to the wrong vendor record, as the data entry clerk transferred digits in the vendor identification number.

Determine the control plan for each process failure given:

Check digit (a programmed edit): Programmed edit checks help to identify the errors in the input document, then the clerk will take corrective actions based on the identified errors. it helps to obey with balance agreement and saves time.

The edits in the input document help to identify enormous errors, which would result in improved accuracy and it ensure input completeness.

2)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

Invoice documents were not recorded.

Determine the control plan for each process failure given:

Reconcile batch totals: If the document count is merged before entering the total count of the documents accepted by the system then there will be evidence to make sure that the input is valid and accurate.

3)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

Before running the disbursement programs, the amount of cash disbursements should be the cash disbursements that was authorized by the clerk.

Determine the control plan for each process failure given:

Run-to-run totals: The batch totals for approved payments should be created by the cash disbursement clerk and it must be compared with the actual amount paid.

4)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

Based on the vendor payment terms and due dates, the accounts payable clerk prepares a list of proposed payments. Due to the lack of funds, cash disbursement does not approve most of the proposed payment.

Determine the control plan for each process failure given:

Cash planning report: On a regular basis, the treasurer should produce and review an aging of accounts payable to make sure that enough funds are available to pay obligations.

5)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

The invoice was paid its full amount. However, the vendor invoiced for good, which was not delivered.

Determine the control plan for each process failure given:

One-for-one checking of the receiving report and the invoice: One-for-one checking is the control, which is used to compare the source document with the output of the process. Here, it helps to compare the receiving report and the invoice.

6)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

The vendor invoice was paid. However, the vendor charged excess unit prices than the price that had been negotiated.

Determine the control plan for each process failure given:

One-for-one checking of the purchase order and the vendor invoice: One-for-one checking is the control, which is used to compare the source document with the output of the process. Here, it helps to compare the purchase order and the vendor invoice.

7)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

The invoice was paid twice, as the vendor submitted a duplicate invoice.

Determine the control plan for each process failure given:

Match invoice with PO: The purchase order should be matched with the invoice received for the order.

8)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

The total of vendor payable balances that are outstanding shows the large difference from general ledger’s balance due to miscellaneous errors.

Determine the control plan for each process failure given:

Reconcile run-to-run totals: The reconciliation of batch totals or the run-to-run totals would detect the errors if the general ledger is updated as a batch.

9)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

The organization paid for the received invoices. However, they paid for the things that were never purchased.

Determine the control plan for each process failure given:

Match invoice with PO and receiving report: The invoice received from the vendor should be matched with the purchase order and receiving report.

10)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

The particular vendor would receipt the goods always on time. However, the organization failed to obtain cash discounts, as the invoices are after late from the vendor.

Determine the control plan for each process failure given:

Tickler file of open purchase orders and receiving reports: Tickler files are an electronic or manual area where the documents, which need follow-up will be stored.

Want to see more full solutions like this?

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

Answer 5

Chapter 13, Problem 4P

1)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

In the accounts payable master data, a vendor invoice was posted to the wrong vendor record, as the data entry clerk transferred digits in the vendor identification number.

Determine the control plan for each process failure given:

Check digit (a programmed edit): Programmed edit checks help to identify the errors in the input document, then the clerk will take corrective actions based on the identified errors. it helps to obey with balance agreement and saves time.

The edits in the input document help to identify enormous errors, which would result in improved accuracy and it ensure input completeness.

2)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

Invoice documents were not recorded.

Determine the control plan for each process failure given:

Reconcile batch totals: If the document count is merged before entering the total count of the documents accepted by the system then there will be evidence to make sure that the input is valid and accurate.

3)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

Before running the disbursement programs, the amount of cash disbursements should be the cash disbursements that was authorized by the clerk.

Determine the control plan for each process failure given:

Run-to-run totals: The batch totals for approved payments should be created by the cash disbursement clerk and it must be compared with the actual amount paid.

4)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

Based on the vendor payment terms and due dates, the accounts payable clerk prepares a list of proposed payments. Due to the lack of funds, cash disbursement does not approve most of the proposed payment.

Determine the control plan for each process failure given:

Cash planning report: On a regular basis, the treasurer should produce and review an aging of accounts payable to make sure that enough funds are available to pay obligations.

5)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

The invoice was paid its full amount. However, the vendor invoiced for good, which was not delivered.

Determine the control plan for each process failure given:

One-for-one checking of the receiving report and the invoice: One-for-one checking is the control, which is used to compare the source document with the output of the process. Here, it helps to compare the receiving report and the invoice.

6)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

The vendor invoice was paid. However, the vendor charged excess unit prices than the price that had been negotiated.

Determine the control plan for each process failure given:

One-for-one checking of the purchase order and the vendor invoice: One-for-one checking is the control, which is used to compare the source document with the output of the process. Here, it helps to compare the purchase order and the vendor invoice.

7)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

The invoice was paid twice, as the vendor submitted a duplicate invoice.

Determine the control plan for each process failure given:

Match invoice with PO: The purchase order should be matched with the invoice received for the order.

8)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

The total of vendor payable balances that are outstanding shows the large difference from general ledger’s balance due to miscellaneous errors.

Determine the control plan for each process failure given:

Reconcile run-to-run totals: The reconciliation of batch totals or the run-to-run totals would detect the errors if the general ledger is updated as a batch.

9)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

The organization paid for the received invoices. However, they paid for the things that were never purchased.

Determine the control plan for each process failure given:

Match invoice with PO and receiving report: The invoice received from the vendor should be matched with the purchase order and receiving report.

10)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

The particular vendor would receipt the goods always on time. However, the organization failed to obtain cash discounts, as the invoices are after late from the vendor.

Determine the control plan for each process failure given:

Tickler file of open purchase orders and receiving reports: Tickler files are an electronic or manual area where the documents, which need follow-up will be stored.

Answer 6

Chapter 13, Problem 4P

1)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

In the accounts payable master data, a vendor invoice was posted to the wrong vendor record, as the data entry clerk transferred digits in the vendor identification number.

Determine the control plan for each process failure given:

Check digit (a programmed edit): Programmed edit checks help to identify the errors in the input document, then the clerk will take corrective actions based on the identified errors. it helps to obey with balance agreement and saves time.

The edits in the input document help to identify enormous errors, which would result in improved accuracy and it ensure input completeness.

Answer 7

Chapter 13, Problem 4P

1)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

In the accounts payable master data, a vendor invoice was posted to the wrong vendor record, as the data entry clerk transferred digits in the vendor identification number.

Determine the control plan for each process failure given:

Check digit (a programmed edit): Programmed edit checks help to identify the errors in the input document, then the clerk will take corrective actions based on the identified errors. it helps to obey with balance agreement and saves time.

The edits in the input document help to identify enormous errors, which would result in improved accuracy and it ensure input completeness.

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 each process failure given.

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 process failure:

Invoice documents were not recorded.

Determine the control plan for each process failure given:

Reconcile batch totals: If the document count is merged before entering the total count of the documents accepted by the system then there will be evidence to make sure that the input is valid and accurate.

Answer 13

2)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

Invoice documents were not recorded.

Determine the control plan for each process failure given:

Reconcile batch totals: If the document count is merged before entering the total count of the documents accepted by the system then there will be evidence to make sure that the input is valid and accurate.

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 each process failure given.

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 process failure:

Before running the disbursement programs, the amount of cash disbursements should be the cash disbursements that was authorized by the clerk.

Determine the control plan for each process failure given:

Run-to-run totals: The batch totals for approved payments should be created by the cash disbursement clerk and it must be compared with the actual amount paid.

Answer 19

3)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

Before running the disbursement programs, the amount of cash disbursements should be the cash disbursements that was authorized by the clerk.

Determine the control plan for each process failure given:

Run-to-run totals: The batch totals for approved payments should be created by the cash disbursement clerk and it must be compared with the actual amount paid.

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 each process failure given.

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 process failure:

Based on the vendor payment terms and due dates, the accounts payable clerk prepares a list of proposed payments. Due to the lack of funds, cash disbursement does not approve most of the proposed payment.

Determine the control plan for each process failure given:

Cash planning report: On a regular basis, the treasurer should produce and review an aging of accounts payable to make sure that enough funds are available to pay obligations.

Answer 25

4)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

Based on the vendor payment terms and due dates, the accounts payable clerk prepares a list of proposed payments. Due to the lack of funds, cash disbursement does not approve most of the proposed payment.

Determine the control plan for each process failure given:

Cash planning report: On a regular basis, the treasurer should produce and review an aging of accounts payable to make sure that enough funds are available to pay obligations.

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 each process failure given.

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 process failure:

The invoice was paid its full amount. However, the vendor invoiced for good, which was not delivered.

Determine the control plan for each process failure given:

One-for-one checking of the receiving report and the invoice: One-for-one checking is the control, which is used to compare the source document with the output of the process. Here, it helps to compare the receiving report and the invoice.

Answer 31

5)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

The invoice was paid its full amount. However, the vendor invoiced for good, which was not delivered.

Determine the control plan for each process failure given:

One-for-one checking of the receiving report and the invoice: One-for-one checking is the control, which is used to compare the source document with the output of the process. Here, it helps to compare the receiving report and the invoice.

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 each process failure given.

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 process failure:

The vendor invoice was paid. However, the vendor charged excess unit prices than the price that had been negotiated.

Determine the control plan for each process failure given:

One-for-one checking of the purchase order and the vendor invoice: One-for-one checking is the control, which is used to compare the source document with the output of the process. Here, it helps to compare the purchase order and the vendor invoice.

Answer 37

6)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

The vendor invoice was paid. However, the vendor charged excess unit prices than the price that had been negotiated.

Determine the control plan for each process failure given:

One-for-one checking of the purchase order and the vendor invoice: One-for-one checking is the control, which is used to compare the source document with the output of the process. Here, it helps to compare the purchase order and the vendor invoice.

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 each process failure given.

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 process failure:

The invoice was paid twice, as the vendor submitted a duplicate invoice.

Determine the control plan for each process failure given:

Match invoice with PO: The purchase order should be matched with the invoice received for the order.

Answer 43

7)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

The invoice was paid twice, as the vendor submitted a duplicate invoice.

Determine the control plan for each process failure given:

Match invoice with PO: 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 each process failure given.

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 process failure:

The total of vendor payable balances that are outstanding shows the large difference from general ledger’s balance due to miscellaneous errors.

Determine the control plan for each process failure given:

Reconcile run-to-run totals: The reconciliation of batch totals or the run-to-run totals would detect the errors if the general ledger is updated as a batch.

Answer 49

8)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

The total of vendor payable balances that are outstanding shows the large difference from general ledger’s balance due to miscellaneous errors.

Determine the control plan for each process failure given:

Reconcile run-to-run totals: The reconciliation of batch totals or the run-to-run totals would detect the errors if the general ledger is updated as a batch.

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 each process failure given.

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 process failure:

The organization paid for the received invoices. However, they paid for the things that were never purchased.

Determine the control plan for each process failure given:

Match invoice with PO and receiving report: The invoice received from the vendor should be matched with the purchase order and receiving report.

Answer 55

9)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

The organization paid for the received invoices. However, they paid for the things that were never purchased.

Determine the control plan for each process failure given:

Match invoice with PO and receiving report: The invoice received from the vendor should be matched with the purchase order and receiving report.

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 each process failure given.

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 process failure:

The particular vendor would receipt the goods always on time. However, the organization failed to obtain cash discounts, as the invoices are after late from the vendor.

Determine the control plan for each process failure given:

Tickler file of open purchase orders and receiving reports: Tickler files are an electronic or manual area where the documents, which need follow-up will be stored.

Answer 61

10)

Summary Introduction

To determine: The control plan for each process failure given.

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 process failure:

The particular vendor would receipt the goods always on time. However, the organization failed to obtain cash discounts, as the invoices are after late from the vendor.

Determine the control plan for each process failure given:

Tickler file of open purchase orders and receiving reports: Tickler files are an electronic or manual area where the documents, which need follow-up will be stored.