Chapter 6, Problem 6.8E

What is the purpose of the following control procedures (i.e., what threats is it designed to mitigate)? b. Reconciliation of labor costs (based on job-time ticket data) with payroll (based on time card data).

SEPARATION OF DUTIESTransferring people from job to job within the organization is the philosophy atArcadia Plastics. Management believes that job rotation deters employees from feelingthat they are stagnating in their jobs and promotes a better understanding of thecompany. The computer services personnel typically work for six months as anoperator, one year as a systems developer, six months as a database administrator, andone year in systems maintenance. At that point, they are assigned to a permanentposition.RequiredDiscuss the importance of separation of duties within the information systemsdepartment. How can Arcadia Plastics have both job rotation and well-separatedduties

Match each of the following control activities with its definition. Control Activities Definitions 1. Separation of duties 2. Physical controls 3. Proper authorization 4. Employee management 5. Reconciliations 6. Performance reviews a. The company should maintain security over assets and accounting records.b. Management should periodically determine whether the amounts of physical assets of the company match the accounting records.c. The company should provide employees with appropriate guidance to ensure they have the knowledge necessary to carry out their job duties.d. The actual performance of individuals or processes should be checked against their expected performance.e. Authorizing transactions, recording transactions, and maintaining control of the related assets should be separated among employees.f. To prevent improper use of the company’s resources, only certain employees are allowed to carry out certain business activities.