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.
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Chapter 12 Solutions
Pkg Acc Infor Systems MS VISIO CD
- Explain the 8 step of developing the logistics strategy? Do a logistic audit The internal audit analysis Design the general feature of supply chain Set specific goals to show what each logistics activity must achieve. Design the best organizational structure, controls and system to support the logistic network. Benchmark logistic Implementation strategy Monitor and control.arrow_forwardAnswer the following questions. a. Which department is responsible for initiating the purchase of materials? b. What is the name of the document generated by the department identified in (a) above? c. Typically, multiple copies of a purchase order are prepared. One copy should go to the vendor, and one is retained in the purchasing department. To achieve proper control, which other departments should receive copies of the purchase order? d. What documents does the accounts payable clerk review before setting up a liability? e. Which document transfers responsibility for goods sold to a common carrier?arrow_forwardAn example of a preventive control in the expenditure cycle is: A. Requiring management approval for large purchases B. Regular inventory counts C. Using firewalls and intrusion detection systems D. Conducting vendor audits.arrow_forward
- PHYSICAL CONTROLSUsing the flowchart of a purchases system for Problem8, identify six major physical control weaknesses in the system. Discuss the unmitigated risks associated with each weakness.arrow_forwardWhich of the following statements is true?a. Journal vouchers detailing transaction activity flow from various operational departments into the GLS, where they are independently reconciled and posted to the journal voucher history file. b. Journal vouchers summarizing transaction activity flow from the accounting department into the GLS, where they are independently reconciled and posted to the general ledger accounts. c. Journal vouchers summarizing transaction activity flow from various operational departments into the GLS, where they are independently reconciled and posted to the general ledger accounts. d. Journal vouchers summarizing transaction activity flow from various operational departments into the GLS, where they are indepen dently reconciled and posted to the journal voucher history file.arrow_forwardDiscuss the importance of supervision controls in the receiving department and the reasons behind blinf fields on the receiving reportarrow_forward
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