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 13, Problem 7P

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:

Company W ordered 30 circuit breakers from Company E and received only 25. Other 5 circuit breakers were on the backorder at Company E. However, an invoice was received for 30 circuit breakers and paid fully.

Determine the control plan for the given system failure:

Match invoice, PO, and receiving report: Matching invoice with Purchase Order (PO) and the receiving report helps the firm to avoid the invoices for the goods which were not ordered or received.

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:

Company T usually does not receive invoices and record invoices in a timely manner for payment discounts.

Determine the control plan for the given system failure:

Tickler file of open POs and receiving reports: Tickler files are an electronic or manual area where the documents, which need follow-up will be stored. It will help the firm to follow up the vendors who have not sent invoices.

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 N is a cashier at Company S who has been writing checks to herself and no one detected for years.

Determine the control plan for the given system failure:

Reconcile bank account: Reconcile bank account helps to make sure that the payments made by the bank are accurate and authorized.

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:

At Company E, some of the incoming invoices are not matched against receiving reports and PO. Person J would prepare a PO to cover the invoice if he cannot find a PO for the incoming invoices.

Determine the control plan for the given system failure:

Segregate duties among purchasing, receiving, and accounts payable: The duties of the purchasing and receiving department, and accounts payable should be segregated.

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:

The company I receive vendor invoices once each day as batches from the Value-Added Network (VAN) through EDI feed. However, some of the invoices are from the fake vendors.

Determine the control plan for the given system failure:

Compare input data with master data: Comparing the input data with the master vendor data helps to determine the invoices from the authorized vendors.

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:

Due to the cash flow diagrams, Company W loses discounts on vendor payments.

Determine the control plan for the given system failure:

Review of a 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.

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:

Person A is an accounts payable clerk at Company F, who has grown drained of resolving discrepancies. Person A has changed the accounts payable invoice programs to allow large variances to reduce rejects.

Determine the control plan for the given system failure:

Program change controls: Program that performs a credit check and validation should be prevented from the unauthorized alternation which can be done with the help of program change controls.

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:

Person N is an account payable who send the batch of vendor invoices to the clerk in cash disbursements twice a week. However, it is discovered that not all the payments were made correctly.

Determine the control plan for the given system failure:

Reconcile 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.

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:

Company S receives the electronic invoice by the third party via a web portal. It is discovered that the invoices were altered in transit from the vendor, as most of the invoices are not correct.

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:

Person G is the cashier who received invoices and made payments as needed. Some of the payments are to fake vendors.

Determine the control plan for the given system failure:

Segregate duties between accounts payable and cashier: The duties of accounts payable and cashier should be segregated to take care of the things without difficulties.

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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…

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Answer 2

Question

Chapter 13, Problem 7P

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:

Company W ordered 30 circuit breakers from Company E and received only 25. Other 5 circuit breakers were on the backorder at Company E. However, an invoice was received for 30 circuit breakers and paid fully.

Determine the control plan for the given system failure:

Match invoice, PO, and receiving report: Matching invoice with Purchase Order (PO) and the receiving report helps the firm to avoid the invoices for the goods which were not ordered or received.

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:

Company T usually does not receive invoices and record invoices in a timely manner for payment discounts.

Determine the control plan for the given system failure:

Tickler file of open POs and receiving reports: Tickler files are an electronic or manual area where the documents, which need follow-up will be stored. It will help the firm to follow up the vendors who have not sent invoices.

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 N is a cashier at Company S who has been writing checks to herself and no one detected for years.

Determine the control plan for the given system failure:

Reconcile bank account: Reconcile bank account helps to make sure that the payments made by the bank are accurate and authorized.

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:

At Company E, some of the incoming invoices are not matched against receiving reports and PO. Person J would prepare a PO to cover the invoice if he cannot find a PO for the incoming invoices.

Determine the control plan for the given system failure:

Segregate duties among purchasing, receiving, and accounts payable: The duties of the purchasing and receiving department, and accounts payable should be segregated.

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:

The company I receive vendor invoices once each day as batches from the Value-Added Network (VAN) through EDI feed. However, some of the invoices are from the fake vendors.

Determine the control plan for the given system failure:

Compare input data with master data: Comparing the input data with the master vendor data helps to determine the invoices from the authorized vendors.

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:

Due to the cash flow diagrams, Company W loses discounts on vendor payments.

Determine the control plan for the given system failure:

Review of a 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.

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:

Person A is an accounts payable clerk at Company F, who has grown drained of resolving discrepancies. Person A has changed the accounts payable invoice programs to allow large variances to reduce rejects.

Determine the control plan for the given system failure:

Program change controls: Program that performs a credit check and validation should be prevented from the unauthorized alternation which can be done with the help of program change controls.

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:

Person N is an account payable who send the batch of vendor invoices to the clerk in cash disbursements twice a week. However, it is discovered that not all the payments were made correctly.

Determine the control plan for the given system failure:

Reconcile 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.

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:

Company S receives the electronic invoice by the third party via a web portal. It is discovered that the invoices were altered in transit from the vendor, as most of the invoices are not correct.

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:

Person G is the cashier who received invoices and made payments as needed. Some of the payments are to fake vendors.

Determine the control plan for the given system failure:

Segregate duties between accounts payable and cashier: The duties of accounts payable and cashier should be segregated to take care of the things without difficulties.

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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 13, Problem 7P

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:

Company W ordered 30 circuit breakers from Company E and received only 25. Other 5 circuit breakers were on the backorder at Company E. However, an invoice was received for 30 circuit breakers and paid fully.

Determine the control plan for the given system failure:

Match invoice, PO, and receiving report: Matching invoice with Purchase Order (PO) and the receiving report helps the firm to avoid the invoices for the goods which were not ordered or received.

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:

Company T usually does not receive invoices and record invoices in a timely manner for payment discounts.

Determine the control plan for the given system failure:

Tickler file of open POs and receiving reports: Tickler files are an electronic or manual area where the documents, which need follow-up will be stored. It will help the firm to follow up the vendors who have not sent invoices.

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 N is a cashier at Company S who has been writing checks to herself and no one detected for years.

Determine the control plan for the given system failure:

Reconcile bank account: Reconcile bank account helps to make sure that the payments made by the bank are accurate and authorized.

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:

At Company E, some of the incoming invoices are not matched against receiving reports and PO. Person J would prepare a PO to cover the invoice if he cannot find a PO for the incoming invoices.

Determine the control plan for the given system failure:

Segregate duties among purchasing, receiving, and accounts payable: The duties of the purchasing and receiving department, and accounts payable should be segregated.

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:

The company I receive vendor invoices once each day as batches from the Value-Added Network (VAN) through EDI feed. However, some of the invoices are from the fake vendors.

Determine the control plan for the given system failure:

Compare input data with master data: Comparing the input data with the master vendor data helps to determine the invoices from the authorized vendors.

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:

Due to the cash flow diagrams, Company W loses discounts on vendor payments.

Determine the control plan for the given system failure:

Review of a 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.

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:

Person A is an accounts payable clerk at Company F, who has grown drained of resolving discrepancies. Person A has changed the accounts payable invoice programs to allow large variances to reduce rejects.

Determine the control plan for the given system failure:

Program change controls: Program that performs a credit check and validation should be prevented from the unauthorized alternation which can be done with the help of program change controls.

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:

Person N is an account payable who send the batch of vendor invoices to the clerk in cash disbursements twice a week. However, it is discovered that not all the payments were made correctly.

Determine the control plan for the given system failure:

Reconcile 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.

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:

Company S receives the electronic invoice by the third party via a web portal. It is discovered that the invoices were altered in transit from the vendor, as most of the invoices are not correct.

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:

Person G is the cashier who received invoices and made payments as needed. Some of the payments are to fake vendors.

Determine the control plan for the given system failure:

Segregate duties between accounts payable and cashier: The duties of accounts payable and cashier should be segregated to take care of the things without difficulties.

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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 13, Problem 7P

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:

Company W ordered 30 circuit breakers from Company E and received only 25. Other 5 circuit breakers were on the backorder at Company E. However, an invoice was received for 30 circuit breakers and paid fully.

Determine the control plan for the given system failure:

Match invoice, PO, and receiving report: Matching invoice with Purchase Order (PO) and the receiving report helps the firm to avoid the invoices for the goods which were not ordered or received.

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:

Company T usually does not receive invoices and record invoices in a timely manner for payment discounts.

Determine the control plan for the given system failure:

Tickler file of open POs and receiving reports: Tickler files are an electronic or manual area where the documents, which need follow-up will be stored. It will help the firm to follow up the vendors who have not sent invoices.

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 N is a cashier at Company S who has been writing checks to herself and no one detected for years.

Determine the control plan for the given system failure:

Reconcile bank account: Reconcile bank account helps to make sure that the payments made by the bank are accurate and authorized.

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:

At Company E, some of the incoming invoices are not matched against receiving reports and PO. Person J would prepare a PO to cover the invoice if he cannot find a PO for the incoming invoices.

Determine the control plan for the given system failure:

Segregate duties among purchasing, receiving, and accounts payable: The duties of the purchasing and receiving department, and accounts payable should be segregated.

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:

The company I receive vendor invoices once each day as batches from the Value-Added Network (VAN) through EDI feed. However, some of the invoices are from the fake vendors.

Determine the control plan for the given system failure:

Compare input data with master data: Comparing the input data with the master vendor data helps to determine the invoices from the authorized vendors.

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:

Due to the cash flow diagrams, Company W loses discounts on vendor payments.

Determine the control plan for the given system failure:

Review of a 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.

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:

Person A is an accounts payable clerk at Company F, who has grown drained of resolving discrepancies. Person A has changed the accounts payable invoice programs to allow large variances to reduce rejects.

Determine the control plan for the given system failure:

Program change controls: Program that performs a credit check and validation should be prevented from the unauthorized alternation which can be done with the help of program change controls.

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:

Person N is an account payable who send the batch of vendor invoices to the clerk in cash disbursements twice a week. However, it is discovered that not all the payments were made correctly.

Determine the control plan for the given system failure:

Reconcile 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.

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:

Company S receives the electronic invoice by the third party via a web portal. It is discovered that the invoices were altered in transit from the vendor, as most of the invoices are not correct.

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:

Person G is the cashier who received invoices and made payments as needed. Some of the payments are to fake vendors.

Determine the control plan for the given system failure:

Segregate duties between accounts payable and cashier: The duties of accounts payable and cashier should be segregated to take care of the things without difficulties.

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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 13, Problem 7P

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:

Company W ordered 30 circuit breakers from Company E and received only 25. Other 5 circuit breakers were on the backorder at Company E. However, an invoice was received for 30 circuit breakers and paid fully.

Determine the control plan for the given system failure:

Match invoice, PO, and receiving report: Matching invoice with Purchase Order (PO) and the receiving report helps the firm to avoid the invoices for the goods which were not ordered or received.

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:

Company T usually does not receive invoices and record invoices in a timely manner for payment discounts.

Determine the control plan for the given system failure:

Tickler file of open POs and receiving reports: Tickler files are an electronic or manual area where the documents, which need follow-up will be stored. It will help the firm to follow up the vendors who have not sent invoices.

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 N is a cashier at Company S who has been writing checks to herself and no one detected for years.

Determine the control plan for the given system failure:

Reconcile bank account: Reconcile bank account helps to make sure that the payments made by the bank are accurate and authorized.

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:

At Company E, some of the incoming invoices are not matched against receiving reports and PO. Person J would prepare a PO to cover the invoice if he cannot find a PO for the incoming invoices.

Determine the control plan for the given system failure:

Segregate duties among purchasing, receiving, and accounts payable: The duties of the purchasing and receiving department, and accounts payable should be segregated.

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:

The company I receive vendor invoices once each day as batches from the Value-Added Network (VAN) through EDI feed. However, some of the invoices are from the fake vendors.

Determine the control plan for the given system failure:

Compare input data with master data: Comparing the input data with the master vendor data helps to determine the invoices from the authorized vendors.

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:

Due to the cash flow diagrams, Company W loses discounts on vendor payments.

Determine the control plan for the given system failure:

Review of a 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.

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:

Person A is an accounts payable clerk at Company F, who has grown drained of resolving discrepancies. Person A has changed the accounts payable invoice programs to allow large variances to reduce rejects.

Determine the control plan for the given system failure:

Program change controls: Program that performs a credit check and validation should be prevented from the unauthorized alternation which can be done with the help of program change controls.

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:

Person N is an account payable who send the batch of vendor invoices to the clerk in cash disbursements twice a week. However, it is discovered that not all the payments were made correctly.

Determine the control plan for the given system failure:

Reconcile 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.

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:

Company S receives the electronic invoice by the third party via a web portal. It is discovered that the invoices were altered in transit from the vendor, as most of the invoices are not correct.

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:

Person G is the cashier who received invoices and made payments as needed. Some of the payments are to fake vendors.

Determine the control plan for the given system failure:

Segregate duties between accounts payable and cashier: The duties of accounts payable and cashier should be segregated to take care of the things without difficulties.

Answer 6

Chapter 13, Problem 7P

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:

Company W ordered 30 circuit breakers from Company E and received only 25. Other 5 circuit breakers were on the backorder at Company E. However, an invoice was received for 30 circuit breakers and paid fully.

Determine the control plan for the given system failure:

Match invoice, PO, and receiving report: Matching invoice with Purchase Order (PO) and the receiving report helps the firm to avoid the invoices for the goods which were not ordered or received.

Answer 7

Chapter 13, Problem 7P

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:

Company W ordered 30 circuit breakers from Company E and received only 25. Other 5 circuit breakers were on the backorder at Company E. However, an invoice was received for 30 circuit breakers and paid fully.

Determine the control plan for the given system failure:

Match invoice, PO, and receiving report: Matching invoice with Purchase Order (PO) and the receiving report helps the firm to avoid the invoices for the goods which were not ordered or received.

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:

Company T usually does not receive invoices and record invoices in a timely manner for payment discounts.

Determine the control plan for the given system failure:

Tickler file of open POs and receiving reports: Tickler files are an electronic or manual area where the documents, which need follow-up will be stored. It will help the firm to follow up the vendors who have not sent invoices.

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:

Company T usually does not receive invoices and record invoices in a timely manner for payment discounts.

Determine the control plan for the given system failure:

Tickler file of open POs and receiving reports: Tickler files are an electronic or manual area where the documents, which need follow-up will be stored. It will help the firm to follow up the vendors who have not sent invoices.

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 N is a cashier at Company S who has been writing checks to herself and no one detected for years.

Determine the control plan for the given system failure:

Reconcile bank account: Reconcile bank account helps to make sure that the payments made by the bank are accurate and authorized.

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 N is a cashier at Company S who has been writing checks to herself and no one detected for years.

Determine the control plan for the given system failure:

Reconcile bank account: Reconcile bank account helps to make sure that the payments made by the bank are accurate and authorized.

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:

At Company E, some of the incoming invoices are not matched against receiving reports and PO. Person J would prepare a PO to cover the invoice if he cannot find a PO for the incoming invoices.

Determine the control plan for the given system failure:

Segregate duties among purchasing, receiving, and accounts payable: The duties of the purchasing and receiving department, and accounts payable should be segregated.

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:

At Company E, some of the incoming invoices are not matched against receiving reports and PO. Person J would prepare a PO to cover the invoice if he cannot find a PO for the incoming invoices.

Determine the control plan for the given system failure:

Segregate duties among purchasing, receiving, and accounts payable: The duties of the purchasing and receiving department, and accounts payable should be segregated.

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:

The company I receive vendor invoices once each day as batches from the Value-Added Network (VAN) through EDI feed. However, some of the invoices are from the fake vendors.

Determine the control plan for the given system failure:

Compare input data with master data: Comparing the input data with the master vendor data helps to determine the invoices from the authorized vendors.

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:

The company I receive vendor invoices once each day as batches from the Value-Added Network (VAN) through EDI feed. However, some of the invoices are from the fake vendors.

Determine the control plan for the given system failure:

Compare input data with master data: Comparing the input data with the master vendor data helps to determine the invoices from the authorized vendors.

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:

Due to the cash flow diagrams, Company W loses discounts on vendor payments.

Determine the control plan for the given system failure:

Review of a 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 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:

Due to the cash flow diagrams, Company W loses discounts on vendor payments.

Determine the control plan for the given system failure:

Review of a 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 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:

Person A is an accounts payable clerk at Company F, who has grown drained of resolving discrepancies. Person A has changed the accounts payable invoice programs to allow large variances to reduce rejects.

Determine the control plan for the given system failure:

Program change controls: Program that performs a credit check and validation should be prevented from the unauthorized alternation which can be done with the help of program change controls.

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:

Person A is an accounts payable clerk at Company F, who has grown drained of resolving discrepancies. Person A has changed the accounts payable invoice programs to allow large variances to reduce rejects.

Determine the control plan for the given system failure:

Program change controls: Program that performs a credit check and validation should be prevented from the unauthorized alternation which can be done with the help of program change controls.

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:

Person N is an account payable who send the batch of vendor invoices to the clerk in cash disbursements twice a week. However, it is discovered that not all the payments were made correctly.

Determine the control plan for the given system failure:

Reconcile 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 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:

Person N is an account payable who send the batch of vendor invoices to the clerk in cash disbursements twice a week. However, it is discovered that not all the payments were made correctly.

Determine the control plan for the given system failure:

Reconcile 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 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:

Company S receives the electronic invoice by the third party via a web portal. It is discovered that the invoices were altered in transit from the vendor, as most of the invoices are not correct.

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:

Company S receives the electronic invoice by the third party via a web portal. It is discovered that the invoices were altered in transit from the vendor, as most of the invoices are not correct.

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:

Person G is the cashier who received invoices and made payments as needed. Some of the payments are to fake vendors.

Determine the control plan for the given system failure:

Segregate duties between accounts payable and cashier: The duties of accounts payable and cashier should be segregated to take care of the things without difficulties.

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:

Person G is the cashier who received invoices and made payments as needed. Some of the payments are to fake vendors.

Determine the control plan for the given system failure:

Segregate duties between accounts payable and cashier: The duties of accounts payable and cashier should be segregated to take care of the things without difficulties.