1)
To determine: The control plan for the given system failure.
Introduction:
1)
Explanation of Solution
Given system failure:
Inventory shortages have been discovered at Company B by the warehouse managers. They realized that the goods have arrived in the warehouse while investigating the paperwork.
Determine the control plan for the given system failure:
Perimeter and building controls: Accessing control over the warehouse building helps to prevent the losses.
2)
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)
Explanation of Solution
Given system failure:
The vendors claimed that they are billing for the goods they have shipped. However, the accounts payable clerks at Company G have trouble in reconciling the quantities as received and the quantities on invoices sent by the vendors.
Determine the control plan for the given system failure:
Count goods and compare to vendor packing slip: Vendor packing slip should be compared with the goods that are counted.
3)
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)
Explanation of Solution
Given system failure:
Person C ordered unneeded inventory items from the company for which she is the owner.
Determine the control plan for the given system failure:
A written code of conduct: The buyers should sign in a written code of conduct of the firm to avoid conflict of interest between their financial interest and responsibility.
4)
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)
Explanation of Solution
Given system failure:
Person D is working in the receiving department. He once received goods and he is unable to find PO for the goods. Hence, he created PO and received the good. However, later he found that the firm never ordered the goods.
Determine the control plan for the given system failure:
Independent authorization to record receipt: There must be a purchase order on file and the person in logistics should not create the PO.
5)
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)
Explanation of Solution
Given system failure:
Person K created a vendor record for Company E, as she is in need to buy a part from Company E. Afterwards, others began to use Company E for other purchases.
Determine the control plan for the given system failure:
Independent vendor master data maintenance: Vendor master data should be maintained. The firm should need a process to approve the vendors to find that they can deliver goods with the prices.
6)
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)
Explanation of Solution
Given system failure:
When gotten into some financial difficulties, Person S who is working in Company L started to work for Company H. Person S created PO from Company H and recorded a receipt. However, no goods were received. Afterward, Company H sends a bill and gets paid from Company L.
Determine the control plan for the given system failure:
Segregate warehouse and receiving functions: The warehouse and receiving functions should be segregated.
7)
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)
Explanation of Solution
Given system failure:
At Company W, there are discrepancies between the items ordered and recorded that includes wrong quantities and wrong items.
Determine the control plan for the given system failure:
Compare PO data to input receipt data: The purchase order should be matched with the invoice received for the order
8)
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)
Explanation of Solution
Given system failure:
Most of the times, Company S would run out of inventory of some items. They investigated and found that the PO was issued but items are not received. They have also noted that these delayed deliveries and poor performance are from the same vendors.
Determine the control plan for the given system failure:
Compare vendors for price, terms, quality, and availability: Available vendors should be compared with respect to the price, terms, availability, and quality. Hence, vendors who can provide the best services can be selected.
9)
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)
Explanation of Solution
Given system failure:
The vendors of Company M received POs that seemed to be from the firm but actually bogus. Usually, Company M uses the internet to send purchase orders.
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)
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)
Explanation of Solution
Given system failure:
There were several discrepancies in inventory data of Company D. The inventory in the shelf has not reflected in the balances.
Determine the control plan for the given system failure:
Monitor open PO: Open purchase orders should be monitored to avoid discrepancies.
Want to see more full solutions like this?
Chapter 12 Solutions
ACCT. INFO. SYSTEMS W/ MINDTAP >BI<
- Listed here are 20 control plans discussed in the chapter. On the blank line to the left of each control plan, insert a P (preventive), D (detective), or C (corrective) to classify that control most accurately. If you think that more than one code could apply to a particular plan, insert all appropriate codes and briefly explain your answer:arrow_forwardWhich of the following is least likely to be a general control over computer activities? a. Procedures for developing new programs and systems b. Requirements for system documentation c. An access control d. A control total Required: choose the correct answer and Justify your answers in at least 6 sentences.arrow_forwardThe following is a list of 12 control plans from Chapter 8. These are followed by a list of 10 B/AR/CR business process controls or deficiencies. Match the 10 B/AR/CR business process control plans with a pervasive control plan from Chapter 8 that could prevent the deficiencies noted in the preceding list or have an impact on the successful execution of the business process control. Explain the impact that the pervasive control could have. Control Plans from Chapter 8 Access control software (i.e., assignment of access rights to employees) Selection, hiring, and supervision of billing clerks to ensure that they can and do carry out their assigned responsibilities Physical controls for perimeter, building, and computer facilities to prevent loss or destruction of the computer resources Preventive maintenance of computer hardware to ensure reliability and availability Systems development life cycle (SDLC), including testing and approval before implementation of new or revised programs…arrow_forward
- The following is a list of 12 control plans from Chapter 8. These are followed by a list of 10 B/AR/CR business process controls or deficiencies. Match the 10 B/AR/CR business process control plans with a pervasive control plan from Chapter 8 that could prevent the deficiencies noted in the preceding list or have an impact on the successful execution of the business process control. Explain the impact that the pervasive control could have. Control Plans from Chapter 8 Access control software (i.e., assignment of access rights to employees) Selection, hiring, and supervision of billing clerks to ensure that they can and do carry out their assigned responsibilities Physical controls for perimeter, building, and computer facilities to prevent loss or destruction of the computer resources Preventive maintenance of computer hardware to ensure reliability and availability Systems development life cycle (SDLC), including testing and approval before implementation of new or revised programs…arrow_forwardWhich 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_forward
- Choose only one answer as well as state their reasons/rationale for the answer chosen. 7) Which input control is designed to prevent a buffer overflow attack?a. Size checkb. Reasonableness testc. Range checkd. Field checkarrow_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_forwardThe CIO and MD have different views on how the system analysis should be performed. Comment on whose position you sympathise with the most. ( maximum 200 words) b) What method would you recommend to Illustrious Limited for system analysis? Explain. (maximum 150 words)arrow_forward
- Pkg Acc Infor Systems MS VISIO CDFinanceISBN:9781133935940Author:Ulric J. GelinasPublisher:CENGAGE LAccounting Information SystemsFinanceISBN:9781337552127Author:Ulric J. Gelinas, Richard B. Dull, Patrick Wheeler, Mary Callahan HillPublisher:Cengage LearningAccounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,