1)
To match: The system failures with a control plan.
Introduction:
1)
Answer to Problem 3P
Hence, the control plan matches the given scenario is “(B)”
Explanation of Solution
Given scenario:
At Company W, clerk in the sales department will enter the individual order details into the computer after received the main from the customer regarding the order. After this, the customers will receive the acknowledgment for their order or else they will call to inquire about the order. It might have been entered into other customer orders. Here, the missing orders will be marked as “entered”
Determine the control plan for the given scenario:
Confirm input acceptance is the control plan that matches the given scenario, as the missing orders are always marked as entered.
2)
To match: The system failures with a control plan.
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)
Answer to Problem 3P
Hence, the control plan matches the given scenario is “(D)”
Explanation of Solution
Given scenario:
At Bank M, the tellers are having difficulty in reconciling the cash drawers of the bank. At the end of the shift, the teller will take a list of transactions occurred in the shift and review the list to support each entry.
Determine the control plan for the given scenario:
Manual agreement of batch totals helps to review the list with better results
3)
To match: The system failures with a control plan.
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)
Answer to Problem 3P
Hence, the control plan matches the given scenario is “(H)”
Explanation of Solution
Given scenario:
At Company D, data entry clerks will enter the batches of documents into the computer. They use networked PCs to enter the documents. Supervisor of Company D planned to implement a control, as errors have been identified in key numeric fields.
Determine the control plan for the given scenario:
The document design is the input to the computer with a fewer error. Hence, the errors found in the key numeric fields can be avoided.
4)
To match: The system failures with a control plan.
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)
Answer to Problem 3P
Hence, the control plan matches the given scenario is “(F)”
Explanation of Solution
Given scenario:
At Company C, the clerks would prepare prenumbered general ledger voucher documents. There are three division in the firm and clerks from each division would work on it. The prepared voucher will be sent to the data entry clerk of each office. It will be recorded in the computer and the controller of the firm recently found the non-recorded vouchers and the voucher that was recorded twice.
Determine the control plan for the given scenario:
Cumulative sequence checks help to record the vouchers in the company. As there will be cumulative check, no vouchers can be left unrecorded.
5)
To match: The system failures with a control plan.
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)
Answer to Problem 3P
Hence, the control plan matches the given scenario is “(C)”
Explanation of Solution
Given scenario:
At Company H, purchasing clerks would prepare the purchase orders. The purchasing manager has found that the incorrect quantities have been sent in many purchasing orders.
Determine the control plan for the given scenario:
Programmed edit checks help to identify the errors in the input document, then the clerk will take corrective actions based on the identified errors. Hence, the incorrect quantities can be corrected with less time.
6)
To match: The system failures with a control plan.
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)
Answer to Problem 3P
Hence, the control plan matches the given scenario is “(E)”
Explanation of Solution
Given scenario:
At Company Q, the clerk has entered the dollar amount of the trade in the place where the number of shared sold should be entered. The incorrect trade has been transmitted to the computer in the stock exchange.
Determine the control plan for the given scenario:
Online prompting helps to avoid this kind of errors. Questioning users for the input help to save the time and it helps to ensure the efficient employment of resources.
7)
To match: The system failures with a control plan.
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)
Answer to Problem 3P
Hence, the control plan matches the given scenario is “(K)”
Explanation of Solution
Given scenario:
At Company P, the clerks will open the mail that has the checks from the customer. Remittance advice with the check number, the amount paid, the amount owed, customer number, and invoice number will be prepared by the clerks and it will be entered into the computer.
Determine the control plan for the given scenario:
In order to capture and input a succeeding transaction, turnaround document will be printed by the computer. Quicker processing of data is possible while using the control plan of turnaround document.
8)
To match: The system failures with a control plan.
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)
Answer to Problem 3P
Hence, the control plan matches the given scenario is “(I)”
Explanation of Solution
Given scenario:
The computer at Company D will eliminate the notices that have errors when the firm enters the shipping notices into the computer. The outcome is that the firm found many unrecorded notices.
Determine the control plan for the given scenario:
Procedures for rejected inputs helps to make sure that the notice eliminated from the computer are corrected and resubmitted.
9)
To match: The system failures with a control plan.
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)
Answer to Problem 3P
Hence, the control plan matches the given scenario is “(L)”
Explanation of Solution
Given scenario:
Person J is a hacker who transferred the amount from Bank U to his bank account by accessing the computer of the bank.
Determine the control plan for the given scenario:
Digital signatures make sure that there is only authorized access to the computer.
10)
To match: The system failures with a control plan.
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)
Answer to Problem 3P
Hence, the control plan matches the given scenario is “(G)”
Explanation of Solution
Given scenario:
The variety of documents from the various department will be sent to the data entry clerks at Company L. The unauthorized inputs are keyed in some cases.
Determine the control plan for the given scenario:
Electronic approvals help to protect from the unauthorized inputs.
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Chapter 9 Solutions
Accounting Information Systems
- Which of the following is a component of general controls? a. processing controls b. output controls c. back-up and contingency planning d. input controls Required: choose the correct answer and Justify your answers in at least 6 sentences.arrow_forwardThe following is a list of six control plans from this chapter, and these are followed by a list of five definitions or descriptions of control plans. Match the five definitions or descriptions with a control plan that best matches the definition. Because there are six control plans, you should have one letter left over. Control Plans A. Limit checks B. Tickler files C. Public key cryptography D. Compare input data with master data E. One-for-one checking F. Manual reconciliation of batch totals (hash totals) Definitions or Descriptions 1. Determines if a customer number has been input correctly. 2. Ensures that transmitted messages can be read only by authorized receivers. 3. A control plan that confirms a value that was entered is within a valid range. 4. An area (electronic or manual) where documents or other items are stored that need follow-up. 5. Used to detect changes in batches of events to ensure the validity, completeness, and accuracy of the batch.arrow_forwardMatch the two lists, below, by placing the capital letter from List 1 in each of the cells preceding the five descriptions in List 2 to which they best relate. One description in List 2 can be answered with 2 matches from List 1. Therefore, you should have 2 letters left over from List 1. List 1: Concepts A. Application (i.e., automated) control. B. Corrective control. C. Control environment. D. Input validity. E. Input completeness. F. Input accuracy G. Update completeness. H. Efficient use of resources. List 1: Capital letter List 2: Definitions/Descriptions 1. Insurance policy reimburses a company for losses due to a fire in a warehouse. 2. Shipping notices have a serial number that is tracked to ensure that they are all input. 3. Computer reviews each input to ensure that all the required data are included. 4. Inventory movements are tracked with a scanner to reduce manual counting. 5. Purchase orders are signed to approve the purchase.arrow_forward
- 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…arrow_forwardRefer 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.arrow_forwardThe following is a list of six control plans (A-F). Please match the control plans to each of the control goals and system deficiencies identified in five different companies in the table, below. Control plans: A. Digital signature B. Manually reconcile batch totals C. Preformatted screens D. One-for-one checking of the goods, picking tickets and sales order E. Independent shipping authorization F. Turn around document Control goals and system deficiencies: 1. Zagreb, Inc. receives sales order on its Web server. Several times each day these are downloaded to the order entry and sales system. During the download process several line items are lost. 2. When goods arrive at Toronto Company's warehouse, the shipping clerk keys in the sales order number to retrieve the sales order. Often, the clerk keys the sales order number incorrectly and the wrong sales order is displayed. 3. Central Incorporated's customer send orders over the internet. Central is concerned that some of the orders are…arrow_forward
- c. Analyze the phrysical internal control weaknewesin the systemd. (Optional) Prepare a system Mowchart of a rode-signed computer- based system that resolves thecontrol acakneses that you identified._ Explainyour solution.arrow_forwardFor each of the following file processing operations, indicate whether a sequential file, indexed random file, virtual storage access method, hashing, or pointer structure would work best. You may choose as many as you wish for each step. Also indicate which would perform the least optimally. a. Retrieve a record from the file based on its primary key value. b. Update a record in the file. c. Read a complete file of records. d. Find the next record in a file. e. Insert a record into a file. f. Delete a record from a file. g. Scan a file for records with secondary keys.arrow_forwardhas hired you to review its sales order procedures for internal control compliance and to make recommendations for changes. You are required to:a. Create a data flow diagram of the current system. b. Create a system flowchart of the existing system. c. Analyze the internal control weaknesses in the system. ; andd. Prepare a system flowchart of a redesigned computer-based systemarrow_forward
- Match each word or phrase with the best description of it. Descriptions Words / Phrases related tocomputerized accounting systems a. Allows multiple users to access the system at the same time. Audit trailInternal controlNetwork-compatibleEnterprise resource planning systemsEntry-level software b. Enables the tracking of all transactions. Audit trailEnterprise resource planning systemsEntry-level softwareNetwork-compatibleInternal control c. Identifies suspicious transactions or likely mistakes such as wrong account numbers or duplicate transactions. Audit trailInternal controlEntry-level softwareEnterprise resource planning systemsNetwork-compatible d. Large-scale computer systems that integrate all aspects of the organization including accounting, sales, human resource…arrow_forwardMatch six of the terms (a-j) with the definitions provided below (1-6).a. Application controlsb. Error listingc. General controlsd. Hardware controlse. Input controlsf. Output controlsg. Parallel simulationh. Parallel testingi. Pilot testingj. Processing controls________ 1. The new and old systems operate simultaneously in all locations.________ 2. Controls that relate to all aspects of the IT system.________ 3. Controls such as review of data for reasonableness, designed to assure that data generated by thecomputer is valid, accurate, complete, and distributed only to authorized people.________ 4. Controls that apply to processing of transactions.________ 5. A new system is implemented in one part of the organization while other locations continue to rely onthe old system.________ 6. Controls such as proper authorization of documents, check digits, and adequate documentation,designed to assure that the information to be entered into the computer is authorized, complete, and accurate.arrow_forwardGeneral Controls. Indicate the benefits of each of the following examples of general controls. a. Echo checks are designed and built into the computer by the manufacturer.b. The company schedules regular maintenance on its computer hardware.c. The company involves users in its design of programs and selection of prepackaged software and programs.d. New programs are tested and validated prior to being implemented.e. Documentation is required prior to modifying existing programs using “emergency”change orders.f. The duties of system analysts, programmers, and computer operators are appropriatelyseparated.g. Appropriate backup and data retention policies are implemented.h. The access rights granted to employees are periodically reviewed and evaluated, giving consideration to known changes resulting from promotions and transfers within the company.arrow_forward
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