a. Explanation System Flowchart: System flowchart is representation of procedures concerned with the transactions in the organization as to how the process of transaction takes place. System flowchart focuses on the procedures of transactions... b. To determine Explain the uncontrolled risks in the system. c. To determine Explain the physical controls needed to reduce the risks identified in (b). d. To determine Explain the IT controls that are appropriate in this system.

10th Edition

ISBN: 9781337619202

Author: Hall, James A.

Publisher: Cengage Learning,

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Question

Chapter 5, Problem 5P

To determine

Prepare the system flowchart of the system.

To determine

Explain the uncontrolled risks in the system.

To determine

Explain the physical controls needed to reduce the risks identified in (b).

To determine

Explain the IT controls that are appropriate in this system.

Expert Solution & Answer

Chapter 5 Solutions

Accounting Information Systems

Ch. 5 - Prob. 1RQ Ch. 5 - What purpose does a purchasing department serve?Ch. 5 - Prob. 3RQ Ch. 5 - Prob. 4RQ Ch. 5 - Prob. 5RQ Ch. 5 - Prob. 6RQ Ch. 5 - Prob. 7RQ Ch. 5 - Prob. 8RQ Ch. 5 - Prob. 9RQ Ch. 5 - Some organizations do not use an AP subsidiary...

Ch. 5 - What is the purpose of the blind copy of a PO?Ch. 5 - Prob. 12RQ Ch. 5 - Prob. 1DQ Ch. 5 - Prob. 2DQ Ch. 5 - Prob. 3DQ Ch. 5 - The level of day-to-day department activity in...Ch. 5 - Prob. 5DQ Ch. 5 - What is central to a successful EDI...Ch. 5 - Discuss the objective of eliminating the receiving...Ch. 5 - What purpose does multilevel security control play...Ch. 5 - Prob. 9DQ Ch. 5 - Prob. 10DQ Ch. 5 - Which of the following statements is correct? a....Ch. 5 - Which of the following represents incompatible...Ch. 5 - Prob. 3MCQ Ch. 5 - Prob. 4MCQ Ch. 5 - Prob. 5MCQ Ch. 5 - Prob. 6MCQ Ch. 5 - Prob. 7MCQ Ch. 5 - Which of the following tasks should the cash...Ch. 5 - Which ledger can be updated solely from the...Ch. 5 - Prob. 10MCQ Ch. 5 - Prob. 1P Ch. 5 - INVENTORY ORDERING ALTERNATIVES The flowchart for...Ch. 5 - Prob. 3P Ch. 5 - Prob. 4P Ch. 5 - Prob. 5P Ch. 5 - Prob. 6P Ch. 5 - Prob. 7P Ch. 5 - Prob. 8P Ch. 5 - Prob. 9P Ch. 5 - Prob. 10P Ch. 5 - Prob. 11P Ch. 5 - UNRECORDED LIABILITIES You are auditing the...Ch. 5 - SMITHS MARKET (SMALL BUSINESS ACCOUNTING SYSTEM)...Ch. 5 - POSAVEK REMODELING AND BUILDING SUPPLY COMPANY...Ch. 5 - GREEN POND NURSERY (STANDALONE PC-BASED ACCOUNTING...Ch. 5 - Prob. 4ICC Ch. 5 - Prob. 5ICC Ch. 5 - Prob. 6ICC Ch. 5 - Prob. 7ICC Ch. 5 - Prob. 8ICC

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Similar questions

A company is trying to set up proper internal controls for their accounts payable/inventory purchasing system. Currently the purchase order is generated by the same person who receives the inventory. Together the purchase order and the receiving ticket are sent to accounts payable for payment. What changes would you make to improve the internal control structure? A. No changes would be made since the person paying the bills is different from the person ordering the inventory. B. The person in accounts payable should generate the purchase order. C. The person in accounts payable should generate the receiving ticket once the invoice from the supplier is received. D. The responsibilities of generating the purchase order and receiving the inventory should be separated among two different people.
There are several elements to internal controls. Which of the following would not address the issue of having cash transactions reported in the accounting records? A. One employee would have access to the cash register. B. The cash drawer should be closed out, and cash and the sales register should be reconciled on a prenumbered form. C. Ask customers to report to a manager if they do not receive a sales receipt or invoice. D. The person behind the cash register should also be responsible for making price adjustments.

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