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: Will all data entry clerks and accounting personnel have their own PCs with log‐in IDs and password protection
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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:
Will all data entry clerks and accounting personnel have their own PCs with log‐in IDs and password protection?
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- 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: Is it appropriate to program the system for general authorization of certain sales, within given limits?Leonard Moses is planning to grow its customer base and is in the process of creating an online web-based sales ordering system for customers to purchase products using personal credit cards for payment. At a recent meeting with the internal auditors, it was highlighted that there are risk associated with this system. Identify three risks related to an online sales system that management should consider. For each risk, identify an internal control that could be implemented to reduce that risk.Question #66: 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: Will all data entry clerks and accounting personnel have their own PCs with log‐in IDs and password protection? Will different system access levels for different users be incorporated? Will customer orders be received via the Internet? Has the company identified an off‐site alternative computer processing location? Does the project budget include line items for an upgraded, uninterrupted power source and firewall? Required: In a two (2) page response, describe the control purpose for each point presented in the case.
- After finishing your accounting degree, you joined an accounting firm. This is a medium-size accountingfirm with a reasonable range of clients. You are in an engagement meeting with one of your clients, andyour client's management raises some concerns. In particular, the management is concerned that theaudit tests that you perform will disrupt operations. Your client has recently implemented a datawarehouse. The management suggests that you draw the data for analytical reviews and substantivetesting from the data warehouse instead of the operational database. Further, the management pointsout that operational data are copied weekly into the data warehouse, and all data you need are containedthere.Required: Based on the given scenario, outline your response to the management's proposal and mentionany concerns you might have.The ABC Company is switching from its legacy centralizedsystem to a fully distributed system. Underthe new model, all employees will work from PCsconnected to a local area network. a. Outline a plan of action to ensure that the propercontrols over hardware, software, data, people,procedures, and documentation are in place.b. Discuss any risks the company may face if thedevised plan is not implemented.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: Will customer orders be received via the Internet? Are all collections from customers received in the form of checks? Are product quantities monitored regularly?
- ANNOUNCING A NEW INFORMATION SYSTEM The AJAX Company is considering implementing a new accounting system, which will automate sales processing, cash receipts, accounts payable, and cash disbursement procedures. Roger Moore, AJAXs CIO sent an announcement letter to the AJAX community. In the letter, Moore said: I have contracted with Spartan Consulting Group to do the needs analysis, system selection, and design work. The programming and implementation will be performed in-house using existing IT department staff. The development process will be unobtrusive to user departments because Spartan knows what needs to be done. They will work independently, in the background, and will not disrupt departmental and internal audit work How with time-consuming interviews, surveys, and questionnaires. This promises to be an efficient process that will produce a system that will be appreciated by all users. Required Draft a memo from George Jones, Director of Internal Audits, in response to Moores letter.You are currently working in a mid-tier accounting firm. In an engagement meeting with a client, the management of your client is concerned that the audit tests that you perform will disrupt operations. Your client has recently implemented a data warehouse and the management suggests that you draw the data for analytical reviews and substantive testing from the data warehouse instead of the operational database. The management points out that operational data are copied weekly into the data warehouse and all data you need are contained there. Q. Outline your response to the management’s proposal and mention any concerns you might have.Shining Glass is switching to a new accounting information system. To expedite the implementation, the managing director asked your consulting team to postpone establishing standards and controls until after the system is fully operational. What will be your response to the managing director’s request? Explain.
- You are currently working in a mid-tier accounting firm. In an engagement meeting with a client, the management of your client is concerned that the audit tests that you perform will disrupt operations.Your client has recently implemented a data warehouse and the management suggests that you draw the data for analytical reviews and substantive testing from the data warehouse instead of theoperational database. The management points out that operational data are copied weekly into thedata warehouse and all data you need are contained there. Outline your response to the management’s proposal and mention any concerns you might have.Brekdak is the head of accounting department of Suka Maju company, who manages all resources in accounting to be able to adopt the use of technology, where currently the accounting department has adopted an internal accounting system in the cloud that is integrated with all parts of the company to help in everything the financial record process and make reports, where the system is called cloud accounting. This system is very useful in automating the whole procedures that are equipped with transaction logs, so in addition to being easy to track, it also helps the IT team to correct the data entry on a date if there is something that needs to be added. Along with the IT team led by Josh, the accounting department also assists in oversight related to the recording of financial statements, which only focusing on the results of presenting data information that is consulted with stakeholders and the IT team in the development of future systems. All operations have been running effectively…One way ERP vendors help to make the configuration process easier for their customers is to: All of the above. develop built-in configuration tools to address most of their customers' needs for system changes. encourage their customers to use decentralized databases. train their customers to use an existing system and build interfaces between it and their ERP system.