Accounting Information Systems
10th Edition
ISBN: 9781337619202
Author: Hall, James A.
Publisher: Cengage Learning,
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Question
Chapter 15, Problem 1P
To determine
Explain the types of control required to mitigate the risk in the environment.
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Explain how internal control can be enhanced through the proper installation of Information Technology
Identify the risks for accounting systems that rely heavily on IT functions.
Distinguish between general controls and application controls and give examples at least five
Which duties should be segregated in a computer department?
Describe the typical duties of computer personnel.
What aspects of documentation, file security and retention control procedures are unique to computer systems?
What are the responsibilities of the database administrator (DBA) function?
Compare the risks associated with network environment to those associated with centralized IT functions.
The computer processing portion of a sales order system is represented by the flowchart. Answer the following questions.a. What type of data processing system is this? Explain, and be specific.b. The auditor suggests that this system can be greatly simplified by changing to direct access files. Explain the major operational changes that would occur in the system if this were done.c. The auditor warns of control implications from this change that must be considered. Explain the nature of the control implications.d. Sketch a flowchart (the computerized portion only) of the proposed new system. Use correct symbols and label the diagram.
Which of the following is an example of an input control?
a.making sure report that are distributed to the proper people
b.monitoring the work of data entry clerks.
c. Collecting accurate statistics of historical transactions while gathering data.
d. Performing a check-digit test on a customer acount number
e.Having anothr person review the design of a business form
Chapter 15 Solutions
Accounting Information Systems
Ch. 15 - Prob. 1RQCh. 15 - Prob. 2RQCh. 15 - Prob. 3RQCh. 15 - Prob. 4RQCh. 15 - Prob. 5RQCh. 15 - Explain discretionary access privileges.Ch. 15 - Prob. 7RQCh. 15 - Prob. 8RQCh. 15 - What is a vaccine, and what are its limitations?Ch. 15 - Prob. 10RQ
Ch. 15 - Prob. 11RQCh. 15 - What are the risks from equipment failure?Ch. 15 - Prob. 13RQCh. 15 - Prob. 14RQCh. 15 - Prob. 15RQCh. 15 - Prob. 16RQCh. 15 - Prob. 17RQCh. 15 - Prob. 18RQCh. 15 - Prob. 19RQCh. 15 - Prob. 20RQCh. 15 - Prob. 21RQCh. 15 - Prob. 22RQCh. 15 - Prob. 1DQCh. 15 - Prob. 2DQCh. 15 - Prob. 3DQCh. 15 - Prob. 4DQCh. 15 - Prob. 5DQCh. 15 - Prob. 6DQCh. 15 - Prob. 7DQCh. 15 - Prob. 8DQCh. 15 - Prob. 9DQCh. 15 - Prob. 10DQCh. 15 - Prob. 11DQCh. 15 - Prob. 12DQCh. 15 - Prob. 13DQCh. 15 - End-user computing has become extremely popular in...Ch. 15 - Prob. 15DQCh. 15 - Prob. 16DQCh. 15 - Prob. 17DQCh. 15 - Prob. 18DQCh. 15 - Prob. 19DQCh. 15 - Prob. 20DQCh. 15 - Prob. 21DQCh. 15 - Prob. 22DQCh. 15 - Prob. 23DQCh. 15 - Prob. 24DQCh. 15 - Prob. 25DQCh. 15 - Describe a digest within the context of a digital...Ch. 15 - What is a digital envelope?Ch. 15 - Prob. 28DQCh. 15 - Prob. 29DQCh. 15 - Prob. 30DQCh. 15 - Prob. 31DQCh. 15 - Discuss the unique control problems EDI creates.Ch. 15 - Prob. 33DQCh. 15 - Prob. 34DQCh. 15 - Prob. 1MCQCh. 15 - Prob. 2MCQCh. 15 - Prob. 3MCQCh. 15 - Prob. 4MCQCh. 15 - Prob. 5MCQCh. 15 - Prob. 6MCQCh. 15 - Prob. 7MCQCh. 15 - Prob. 8MCQCh. 15 - Prob. 9MCQCh. 15 - Prob. 10MCQCh. 15 - Prob. 1PCh. 15 - Prob. 2PCh. 15 - Prob. 3PCh. 15 - Prob. 4PCh. 15 - Prob. 5PCh. 15 - Prob. 6PCh. 15 - Prob. 7PCh. 15 - Prob. 8PCh. 15 - Better Business Company (BBC) is in the process of...Ch. 15 - Prob. 10PCh. 15 - Prob. 11PCh. 15 - Prob. 12PCh. 15 - Prob. 13P
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- The Progressive Company is considering taking customers' orders on its Web site. a. What information would Progressive collect from the customer during this process? Be specific. b. What information would need to come from Progressive's Web site and back-end systems to complete the order? c. How would an enterprise system facilitate this type of information? Be specific.arrow_forwardDescribe briefly the processing of transactions, including internal control features, in the following functions under the sales and collection cycle:a. order entryb. customer billingarrow_forwardTests of Controls: Input Controls. Knight Company is a medium-size manufacturingentity that uses an automated transaction system to process its customer orders. Orders arecollected and processed on a daily basis in batches. In its processing of customer orders,Knight requires input of the following information into a daily customer order file (# represents a numeric field; A represents an alphabetic field):∙ Customer number (###).∙ Item number (AA###).∙ Quantities (##).After this information has been entered, the computer program accesses the valid customer master file to ensure that the sale is to an authorized customer and does not exceedthat customer’s credit limit. The program then accesses the inventory master file, verifiesthat the appropriate quantities are on hand, and identifies the most current price. The program then prepares an invoice by multiplying the quantities the customer ordered by theappropriate price and generates a total amount for the sale.To prevent and detect…arrow_forward
- .Internal Controls and RiskReview the following description of the purchasing and AP procedures for a company and answer the questions at the end.The purchasing agent receives an inventory status report on his computer terminal from the inventory control application, which identifies the items that need to be reordered. The agent selects the suppliers and enters this information into the computer terminal to create a digital purchase order. He then prints and sends a copy of the PO to the supplier.When the goods are received directly into the warehouse, the warehouse manager counts and inspects them. The manager then creates a digital receiving report and updates the inventory subsidiary ledger from the warehouse terminal.A few days later, the supplier sends an invoice to the AP clerk who reconciles it with the digital copy of the receiving report. From her computer terminal, the clerk records the purchase in the purchases journal and records the liability by adding a record to the AP…arrow_forwardNTERNAL CONTROLThe following is a description of manufacturing com-pany’s purchasing procedures. All computers in the com-pany are networked to a centralized accounting system sothat each terminal has full access to a common database.The inventory control clerk periodically checks in-ventory levels from a computer terminal to identifyitems that need to be ordered. Once the clerk feels in-ventory is too low, he chooses a supplier and creates apurchase order from the terminal by adding a record tothe purchase order file. The clerk prints a hard copy ofthe purchase order and mails it to the vendor. An elec-tronic notification is also sent to accounts payable andreceiving, giving the clerks of each department accessto the purchase order from their respective terminals.When the raw materials arrive at the unloading dock,a receiving clerk prints a copy of the purchase orderfrom his terminal and reconciles it to the packing slip.The clerk then creates a receiving report on a computersystem.…arrow_forwardSYSTEM DOCUMENTATION-EXPENDITURE CYCLE (MANUAL AND COMPUTER PROCEDURES) The following describes the expenditure cycle for a hypothetical company. The company has a centralized computer system with terminals located in various departments. The terminals are networked to a computer application, and digital accounting records are hosted on a server in the data processing department. Each day, the computer in the data processing center scans the inventory records looking for items that must be replenished. For each item below its reorder point, the system creates a digital purchase order and prints two hard copies. A technician in the data center sends the purchase orders to the purchasing department clerk. Upon receipt of the purchase orders, the purchasing clerk reviews and signs them. He sends Copy 1 to the supplier and files Copy 2 in the purchasing department. A few days later, the supplier ships the order and the goods arrive at the receiving department. The receiving clerk reviews…arrow_forward
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