
1)
To determine: The control plan for each process failure given.
Introduction:
1)

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)
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)

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)
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)

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)
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)

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)
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)

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)
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)

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)
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)

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)
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)

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)
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)

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)
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)

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.
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Chapter 13 Solutions
Accounting Information Systems
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