Accounting Information Systems
10th Edition
ISBN: 9781337619202
Author: Hall, James A.
Publisher: Cengage Learning,
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Question
Chapter 4, Problem 11P
a.
To determine
Explain the control weakness shown in the system flowchart.
b.
To determine
Determine the controls that need to be implemented into the system to mitigate the risks.
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E7-3 The following control procedures are used in Keaton Company for over-the-counter
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5. The company accountant makes the bank deposit and then records the day's receipts.
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a. Identify the physical control weakness depicted in the flowchart for Problem 2
b. Describe the IT controls that should be in place in this system
Refer to the system flowchart labeled Problem 4.Requireda. Discuss the uncontrolled risks associated with the systems as currently configured. b. Describe the controls that need to be implemented into the system to mitigate the risks in thegiven scenario.
Chapter 4 Solutions
Accounting Information Systems
Ch. 4 - Prob. 1RQCh. 4 - Prob. 2RQCh. 4 - What function does the receiving department serve...Ch. 4 - Prob. 4RQCh. 4 - Prob. 5RQCh. 4 - Prob. 6RQCh. 4 - Prob. 7RQCh. 4 - Prob. 8RQCh. 4 - Prob. 9RQCh. 4 - Distinguish between an edit run, a sort run, and...
Ch. 4 - Prob. 11RQCh. 4 - Prob. 12RQCh. 4 - Prob. 13RQCh. 4 - Prob. 14RQCh. 4 - Prob. 15RQCh. 4 - Prob. 16RQCh. 4 - In a manual system, after which event in the sales...Ch. 4 - Prob. 18RQCh. 4 - What document initiates the billing process?Ch. 4 - Prob. 20RQCh. 4 - Prob. 1DQCh. 4 - Prob. 2DQCh. 4 - Prob. 3DQCh. 4 - Prob. 4DQCh. 4 - Prob. 5DQCh. 4 - Prob. 6DQCh. 4 - Prob. 7DQCh. 4 - Prob. 8DQCh. 4 - What financial statement misrepresentations may...Ch. 4 - Prob. 10DQCh. 4 - Prob. 11DQCh. 4 - Prob. 12DQCh. 4 - Prob. 13DQCh. 4 - Prob. 14DQCh. 4 - Prob. 15DQCh. 4 - How is EDI more than technology? What unique...Ch. 4 - Prob. 17DQCh. 4 - Prob. 1MCQCh. 4 - Prob. 2MCQCh. 4 - Prob. 3MCQCh. 4 - Prob. 4MCQCh. 4 - Prob. 5MCQCh. 4 - Prob. 6MCQCh. 4 - Prob. 7MCQCh. 4 - Prob. 8MCQCh. 4 - Prob. 9MCQCh. 4 - Prob. 10MCQCh. 4 - Prob. 1PCh. 4 - Prob. 2PCh. 4 - Prob. 3PCh. 4 - Prob. 4PCh. 4 - Prob. 5PCh. 4 - Prob. 6PCh. 4 - Prob. 7PCh. 4 - Prob. 8PCh. 4 - Prob. 9PCh. 4 - Prob. 10PCh. 4 - Prob. 11PCh. 4 - Prob. 12PCh. 4 - In 1989, Robert Smith opened a small fruit and...Ch. 4 - Posavek is a wholesale supplier of building...Ch. 4 - Prob. 3ICCCh. 4 - (Prepared by Will Richens and Michael Catchpole,...Ch. 4 - Prob. 6ICC
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Similar questions
- INTERNAL CONTROLS AND FLOWCHART ANALYSIS a. Identify the physical control weaknesses depicted in theflowchart for Problem 2.b. Describe the IT controls that should be in place in this system.arrow_forwardWhat category of control procedures best describes a reconciliation account, such as Accounts Payable? 1)Group of answer choices 2)Detective 3)Application 4)Systems 5)Preventivearrow_forwarddescribe the uncontrolled risks in the system in risk analysis and internal controlarrow_forward
- An element of internal control is a. risk assessment b. controlling accounts c. journals d. subsidiary ledgersarrow_forwardWhich of the following assets require the strongest of internal controls? A. inventory B. credit cards C. computer equipment D. casharrow_forward3. Risk registers would normally detail which of the following: (Select all that apply.) A. Risk level before controls are implemented B. Risk lével after controls are implemented C. Responsibility for managing risks D. The total cost of a control being implemented Answer: Page 3 of 11 ted States) E Focus МacВook Proarrow_forward
- An auditor would be most likely to assess control risk at the maximum level in an electronic environment with automated system-generated information when:Select one: a. Fixed asset transactions are few in number, but large in dollar amount. b. Payables are based on many transactions and large in dollar amount. c. Accounts receivable records are based on many transactions and are large in dollar amount. d. Sales orders are initiated using predetermined, automated decision rules.arrow_forwardProviding timely information about transactions in sufficient detail to permit proper classification and financial reporting is an example of a. the control environment. b. risk assessment. c. information and communication. d. monitoring.arrow_forwardRequired: a. Create a document flowchart of the existing system. b. Analyze the internal control weaknesses in the system. Model your response according to the six categories of physical control activities specified in SAS 78. 1.Transaction Authorization 2.Segregation of Duties 3.Supervision 4.Accounting Records 5.Access Control 6.Independent Verificationarrow_forward
- Internal controls are perhaps the most important tools for managing operational risk. What are internal controls? Give three examples of internal controls and explain how each control is used to minimize operational risk.arrow_forwardGive examples of tests of controls to test theoperating effectiveness of internal controlsin the revenue and collection cyclearrow_forwardUsing the following table as a guide, describe for each function A risk (an event or action that will cause the organization to fail to meet its goals/objectives). A control/process or use of technology that will address the risk. Function Risks Controls and Technology Logistics Purchasing Receiving Inventory (Debit ??? (Credit) SP 12-3 The following is a list of six control plans from this chapter or from Chapters 9, 10, and 11. This is followed be a list of five statements describing either the achievement of a control goal (i.e., a system success) or a system deficiency (i.e., a system failure). Match the five control goals or systems deficiencies with a control plan that would best achieve the desired goal or prevent the system deficiency. Each letter may be used only once, with one letter left over. Control Plans File completed and signed receiving report in receiving: Select vendors who can provide goods with appropriate quality Approve purchase…arrow_forward
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