Accounting Information Systems
Accounting Information Systems
10th Edition
ISBN: 9781337619202
Author: Hall, James A.
Publisher: Cengage Learning,
Question
Book Icon
Chapter 15, Problem 2P

a.

To determine

Explain the operating risk associated with Company A.

b.

To determine

Explain the control measures required to mitigate the risk.

Blurred answer
Students have asked these similar questions
Ascendex Sdn Bhd is an online company that supplies a range of IT products. Its product line includes IT hardware and software. Their main customers are government agencies and private company. The company employs a combination of manual procedures and a networked accounting system with distributed terminals in several departments. After years of satisfactory performance, however, Ascendex Sdn Bhd is now experiencing operational inefficiencies and accounting errors. Your firm has been hired to evaluate Ascendex’s business processes and internal controls. Ascendex’s expenditure cycle is described in the following paragraphs. PURCHASE SYSTEM PROCEDURES Ascendex’s transactions are initiated when the purchasing department clerk reviews the inventory file for items that need to be replenished. The clerk selects a vendor, adds a record to the digital purchase order (PO) File, and prints four hard copies of the PO. One copy is filed in the department; the second copy is sent to the receiving…
Listed here are four scenarios. For each scenario, discuss the potential consequences and give a prevention technique. a) A company has recently installed a new computer network. The operating philosophy adopted by the new network administrator was to establish an open system that would foster work group date to the network users. To accomplish this objective, the data administrator assigned employee access privileges to data based on department and functional affiliation rather than specific tasks. b) Sara is a system programmer who was told she would be terminated in three weeks due to poor performance and was asked to conclude all of her projects during the three-week period. Two weeks later Sara created a logic bomb designed to get activated three months after her departure. Subsequently, the bomb destroyed hundreds of records in her previous employer’s accounts receivable invoice file. c) Matt discovered a new sensitivity analysis public-domain program on the Internet. He…
Lamar LLC is in the process of updating its revenues and receivables systems with the implementation of new accounting software. James Loden, Inc. is an independent information technology consultant who is assisting Tamar with the project. James has developed the following checklist containing internal control points that the company should consider in this new implementation: Has the company identified an off‐site alternative computer processing location?

Chapter 15 Solutions

Accounting Information Systems

Knowledge Booster
Background pattern image
Similar questions
Recommended textbooks for you
Text book image
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,