Accounting Information Systems

11th Edition
Ulric J. Gelinas + 3 others
ISBN: 9781337552127



Accounting Information Systems

11th Edition
Ulric J. Gelinas + 3 others
ISBN: 9781337552127
Textbook Problem

The following is a list of six control plans from this chapter or from Chapter 9. These are followed by a list of six statements describing either a control goal or a system deficiency. Match the five control goals or system deficiencies with a control plan that would best prevent the system failure from occurring. Because there are six control plans, you should have one letter left over.

Control Plans

  1. A. One-for-one checking of the goods, picking ticket, and sales order
  2. B. Independent shipping authorization
  3. C. Turn around document
  4. D. Manually reconcile batch totals
  5. E. Digital signatures
  6. F. Preformatted screens

Control Goals or System Deficiencies

  1. 1. In reviewing the shipping department controls, the internal auditors at Treacle Company think they found the potential for fraudulent activity. The process appears to allow warehouse employees to ship goods without proper authorization.
  2. 2. ANE, Incorporated’s customers send orders over the Internet. ANE is concerned that some of the orders are fraudulent.
  3. 3. Allegro, Inc. customers are complaining that they are not receiving the correct items and quantities that they ordered.
  4. 4. Damascene, Inc. receives sales orders 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.
  5. 5. When goods arrive at Villa Nova 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.

Summary Introduction

To match: The control plans against the control goals or System deficiencies.


OE/S process:

It is known as the order entry/sales process. It describes the first four steps of the order-to-cash process.


The control plans against the control goals or System deficiencies:


Correct answer: (B)

Independent shipping authorization.

The shipping authorization process does not have appropriate control measures to check whether the shipping authorization is carried out adhering to the proper guidelines. The control process fails to satisfy the control goals in this situation.


Correct answer: (E)

Digital Signatures.

The orders sent over the internet must contain proper digital signatures of the person or company which makes the orders for the goods. The control plans are not fool proof indicating that there might be presence of fraudulent activities.


Correct answer: (A)

One-for-one checking of the goods, picking goods, and sales order.

There are discrepancies regarding the quantities of goods delivered against the quantities of goods ordered...

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