Discuss how EDI creates an environment in which sensitive information, such as inventory amounts and price data, is no longer private. What potential dangers exist if the proper controls are not in place? Give an example.

Q: What actions to be taken on error/fraud discovery?

A: An auditor is a person who is held responsible for fraud or error detection as he or she is auditing…

Q: ow to prevent and detect fraud, and make it less likely to occur in organization

A: Fraud is a serious issue that might bring down an organization, no matter its size. according to…

Q: What is the major advantage of using a perpetual inventory system? a.) It provides efficient…

A: The perpetual inventory system is working on a continuous basis i.e it updates its record after each…

Q: Discuss how the inventory process supports the production planning process and the risk to the…

A: The term inventory control process includes overseeing things from the second they are ordered all…

Q: Which of the following automated application controls would offer reasonable assurancethat inventory…

A: Auditing is a gathering of information and evaluation of evidence as to report on the degree of…

Q: For good internal control, the purchasing department should not be responsible for... Select one:…

A: Internal Control Internal controls are the mechanisms, rules, and procedures a company should need…

Q: Explain why deficiencies in internal controls might not always result in significant misstatements…

A: Internal controls are the systems, rules, and processes implemented by a company to ensure the…

Q: How can we protect inventroy from being reordered automatically each time the system detects a low…

A: Low inventory level is the level at which there is a need to order new inventory so that the…

Q: Are there advantages to you as a customer when retailers increase theft prevention measures?

A: Yes, There are advantages to you as a consumer when retailers increase theft prevention measures.…

Q: d. Inappropriate Assignment of Labor Costs to Inventory A company having difficulty meeting profit…

A: Analytical procedures are the methods used by the auditors to find out the plausible differences…

Q: Good internal controls in the revenue cycle should ensure all of the following except Select one: a.…

A: Introduction: Revenue: Sales called as Revenue to the business. Revenue is generated on selling…

Q: How can a poorly designed database result in unintentional loss of critical records?

A:

Q: How can confidential data and information be kept confidential and yet still be available to…

A: Management information system (MIS): A management information system (MIS) is a computerized system…

Q: Discuss any separation of duties necessary to control against unauthorized entries to the general…

A: General Ledger:  The financial information required for the preparation of financial reports of…

Q: How do computerized purchasing systems help to reduce the risk of purchasing bottlenecks?

A: Financial Accounting:   It refers to the process of recording the financial transactions of the…

Q: Management and auditor are concerned about inventory control function in automated system? Why? How…

A: Inventory control function in automated system :                   In automated system, inventory is…

Q: what are the objectives of eliminating the receiving function. What accounting/audit problems need…

A: Receiving Department:   The receiving department is in obligation of inspection and the receiving…

Q: Why do the inventory control and general ledger departments seem to disappear in computer-based…

A: Inventory control:   The inventory control maintains the inventory subsidiary ledger. The inventory…

Q: Indicate which statements are true and which are false. Internal control procedures should be…

A: Internal Control system is used by managers for monitoring and controlling business activities. It…

Q: In response to the six primary physical control weaknesses that have been identified, make…

A: Physical control weaknesses: It is the  failure in the implementation or effectiveness of  physical…

Q: A company limits access to computerized accounting records. What can be said of this procedure? a.It…

A: Limited Access Control: Limited access control is a type of control that provides limited access to…

Q: What types of controls are in place to protect data (such as company information or customer…

A: There are many controls which can be put to protect the data as these are very confidential and they…

Q: One internal control that companies often have is an official “approved vendor” list for purchases.…

A: The approved vendor list (AVL) can be referred to as the list containing the information of the…

Q: Critically explain why online purchase is not safe for the customer. What step do you take to check…

A: The era in which we live today is highly into online shopping. It may be for the fact that it is…

Q: How can an organisation use their information system to prevent employees from making inappropriate…

A: Here discuss about the details about find out of the fraudulent purchases which are related with the…

Q: When inventory items have price movements in excess of 50% (considered material), how does this…

A: As per AICPA, "Inherent risk is the risk of material misstatement assuming no related controls,…

Q: Which of the following is an internal control weakness for a company whose inventory of supplies…

A: Internal control is a mechanism or procedure that the company implements so that the integrity of…

Q: What are the computer ethical issues regarding ownership of property?

A:

Q: Vendor invoices are recorded for items that were never ordered by the company. Which of the…

A: If the invoices are recorded for items that were never ordered by the company then such an issue can…

Q: Describe how prenumbered shipping papers and sales invoices may be effective controls for avoiding…

A: Prenumbering: It refers to the technique of giving numerical identifiers to documents that may be…

Q: What types of physical controls are in place to protect company assets (assets include inventory,…

A: Hi, since you have posted multiple questions, we are solving the 1st question for you. To get the…

Q: Explain the importance of auditing in reducing information risk.

A: Auditing refers to the evaluation conducted to determine the effectiveness of a firms internal…

Q: How can we prevent inventory from being reordered automatically each time the system detects a low…

A:

Q: Discuss how EDI dealing with sensitive information, such as inventory amounts and price data, is no…

A: Electronic Data Interchange: Electronic data interchange (EDI) is the channel between the computer…

Q: Explain how prenumbered shipping documents and sales invoicescan be useful controls for preventing…

A: Prenumbering: It refers to the process of assigning of numbers to documents which can be identified.

Q: Why is it important for auditors to obtain control information over inventory count sheets or…

A: Auditing inventory is the process of cross-checking financial records with physical inventory and…

Q: A serious exposure for an organization that is connnected with the revenue cycle is the loss of…

A: In this question we asked about a serious exposure for an organization that is connnected with the…

Q: Which of the following is not an example of safeguarding inventory? a. physical devices such as…

A: From the given options, option (b) is the correct answer:   Explanation:   Returning inventory…

Q: Which of the following assets require the strongest of internal controls? Group of answer choices…

A: The balance sheet represents the financial position of the business with assets and liabilities on a…

Q: Discuss how the inventory process supports the production planning process and the risks to the…

A: Accounting Information System (AIS) is said to be the specialized subsystem of the Information…