1)
To determine: The control plan for the given situation.
Introduction:
1)
Explanation of Solution
Given situation:
The company I have the computer users, who do not know how to use the computer.
Determine the control plan for a given situation:
Training (personnel development): Training can be given to the users to use the computers in a better way.
2)
To determine: The control plan for the given situation.
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 situation:
A computer hacker generated random user ID and password using the program created by him and he used the ID and password to access the system of Company S
Determine the control plan for a given situation:
Intrusion detection systems: It helps to monitor the personnel who are all trying to access the network. It can also be used to detect denial-of-service attacks.
3)
To determine: The control plan for the given situation.
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 the situation:
A temporary power failure in Company D resulting in the run that update customer accounts details regarding deposits and withdrawals has to be processed from the beginning. Due to this, they could not able to complete the jobs on schedule.
Determine the control plan for a given situation:
Backup batteries and generators: Backup batteries help to protect the data from being erased due to power failure.
4)
To determine: The control plan for the given situation.
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 situation:
At Company P, the fire destroyed the computer room and the library of a computer disk. In order to reconstruct the data from hard copy records, it took several months.
Determine the control plan for a given situation:
Offsite-storage of backup computer programs and data: Offsite-storage helps to reconstruct the data without any difficulty.
5)
To determine: The control plan for the given situation.
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 situation:
A competitor of Company W flooded the web server of Company W with several messages and the server was shut down until the messages cleared.
Determine the control plan for a given situation:
Insurance: Insurance will help the firm to save the web server of the firm.
6)
To determine: The control plan for the given situation.
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 situation:
Demonstrators broke into the computer center and demolished the equipment that worth several thousand dollars.
Determine the control plan for a given situation:
Security guards: Having security guards will help the company to protect the firm and equipment from access.
7)
To determine: The control plan for the given situation.
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 situation:
At Company D, a computer programmer was fired for gross incompetence. He demolished all the programs developed by him since being hired.
Determine the control plan for a given situation:
Personnel termination procedures: The firm should have personnel termination procedure, which will restrict the employees who are working in a notice period to access certain things.
8)
To determine: The control plan for the given situation.
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 situation:
A computer operator experienced a strange ending during the updates to the master data of an inventory. Hence, he woke up the supervisor to restart the job.
Determine the control plan for a given situation:
Operations run manual: Operations run manual might have helped the computer operator regarding the issue.
9)
To determine: The control plan for the given situation.
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 situation:
At Company G, a dissatisfied programmer planted a logic bomb in the computer and the bomb will destroy all the payroll master data if he was terminated by the company. The company’s payroll master data was destroyed, as he was fired for continued absenteeism.
Determine the control plan for a given situation:
Program change controls: Program change control is the control that would reduce the risk that is implemented by the unauthorized systems. A program that performs a credit check and validation should be prevented from the unauthorized alternation which can be done with the help of program change controls.
10)
To determine: The control plan for the given situation.
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 situation:
In the recent fire, the computer systems at Company C was destroyed. It took them several days to re-function the operation again.
Determine the control plan for a given situation:
Hot site: The hot site can be able to accommodate many businesses and it is a fully equipped data center. The hot site will be available to client companies for subscriber fees. A hot site is costly and highly responsive.
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Chapter 8 Solutions
Pkg Acc Infor Systems MS VISIO CD
- The following is a list of 13 control plans from this chapter, followed by a list of 10 situations that have control implications. Match the 10 situations with the control plan that would best prevent the system failure from occurring. Because there are 13 control plans, you should have 3 letters left over. Control Plans A. Firewall B. Backup batteries and generators C. Insurance D. Employee badges, guest sign-in, locks on computer room doors E. Hot site F. Intrusion detection systems G. Off-site storage of backup computer programs and data H. Training (personnel development) I. Personnel termination procedures J. Security guards K. Program change controls L. Operations run manuals M. Fidelity Bond Situations 1. The computer users at the Identity Company do not know how to use the computer very well. 2. A computer hacker created a program to generate random user IDs and passwords. He used the random number program to access the computer system of Samson, Inc. 3. During the nightly computer run to update bank customers accounts for deposits and withdrawals for that day, an electrical storm caused a temporary power failure. The run had to be reprocessed from the beginning, resulting in certain other computer jobs not being completed on schedule. 4. A fire destroyed part of the computer room and the adjacent library of computer disks at Petunia, Inc. It took several months to reconstruct the data from manual source documents and other hard copy records. 5. A competitor flooded the Wolfeson Company Web server with false messages (i.e., a denial-of-service attack). The Web server, unable to handle all of this traffic, shut down for several hours until the messages could be cleared. 6. A group of demonstrators broke into a computer center and destroyed computer equipment worth several thousand dollars. 7. A computer programmer at Dover Company was fired for gross incompetence. During the two-week notice period, the programmer destroyed the documentation for all programs that he had developed since being hired. 8. The cash receipts clerk was on his way to the bank to deposit all the cash and checks received by the company that day when he decided that he would prefer to have a vacation in Brazil. The clerk kept the cash and cashed the checks. All the money was lost to the company. 9. A disgruntled programmer at the Going Company planted a logic bomb in the computer program that produced weekly payroll checks. The bomb was triggered to go off if the programmer were ever terminated. When the programmer was fired for continued absenteeism, the next weekly payroll run destroyed all the companys payroll master data. 10. The computer systems at Club, Inc. were destroyed in a recent fire. It took Club several days to get its IT functions operating again.arrow_forwardThe following is a list of six control plans from this chapter, followed by a list of five situations that have control implications. Match each of the five situations with a control plan that would best prevent the system failure from occurring. Because there are six control plans, you should have one letter left over. Control Plans A. Service level agreements B. Clear desk and locked door policy C. User manuals D. Biometric identification systems E. Program change controls F. Personnel termination control plans Control Situations 1. The customer service representatives at Everyday Supplies, a catalog sales company, have been complaining that the computer system response time is very slow. They find themselves apologizing to customers who are waiting on the phone for their orders to be completed. 2. George and Mike have been friends for many years. Henry works in the shipping department at Superior Company, an electronics wholesaler, and Mike is unemployed. To make a little money, Mike borrowed Georges employee badge (it has a magnetic strip on the back to open doors at Superior Company) and used the badge to access the Superior warehouse and steal some electronics gear. 3. At Bedrock Company, most transaction processing is automated. When an inventory item reaches its reorder point, the computer automatically prints a purchase order for the economic order quantity (EOQ). A programmer, who was in collusion with 3D-Arm, Inc., the vendor that supplied several parts, altered the computer program and the inventory master data for those parts. He reduced the EOQ and made certain program alterations, so that items supplied by 3D-Arm were ordered more often than Bedrock required them. 4. The data entry clerk in the accounts payable department at Martini Company did not have detailed instructions for completing the input form for approved vendor invoices. To speed up data entry, he let all of the date information default from the current days date. As a result, several invoices were paid late, and Martini Company lost cash discounts on several other vendor payments. 5. During a normal workday, James, who was not an employee, entered Tortora Companys offices and was able to find and remove some computer printouts containing user IDs and other sensitive information. He later used that information to gain access to Rowleys computer system.arrow_forwardThe following is a list of 12 control plans from Chapter 8. These are followed by a list of 10 B/AR/CR business process controls or deficiencies. Match the 10 B/AR/CR business process control plans with a pervasive control plan from Chapter 8 that could prevent the deficiencies noted in the preceding list or have an impact on the successful execution of the business process control. Explain the impact that the pervasive control could have. Control Plans from Chapter 8 Access control software (i.e., assignment of access rights to employees) Selection, hiring, and supervision of billing clerks to ensure that they can and do carry out their assigned responsibilities Physical controls for perimeter, building, and computer facilities to prevent loss or destruction of the computer resources Preventive maintenance of computer hardware to ensure reliability and availability Systems development life cycle (SDLC), including testing and approval before implementation of new or revised programs…arrow_forward
- Which of the following is least likely to be a general control over computer activities? a. Procedures for developing new programs and systems b. Requirements for system documentation c. An access control d. A control total Required: choose the correct answer and Justify your answers in at least 6 sentences.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_forwardDescribe the duties of systems analysts, programmers, computer operators, data conversion operators,librarians, and the control group. Which duties should be separated within the computer department?arrow_forward
- The following is a list of 12 control plans from this chapter or from Chapters 8, 9, 10, & 11. This is followed by a list of 10 system failures that have control implications. Match the 10 system failures with a control plan that would best prevent the system failure from occurring. Also, give a brief (one- to two-sentence) explanation of your choice. A letter should be used only once, with two letters left over. Control Plans Compare PO data to input receipt data Written code of conduct Compare vendors for price, terms, quality, and availability Monitor open POs Independent authorization to record receipt Count goods and compare to vendor packing slip Independent vendor master data maintenance Personnel management controls (supervision) Perimeter and building controls Segregate warehouse and receiving functions Digital signature Logical and physical access controls System Failures Warehouse managers at Broward, Inc. have been discovering inventory shortages. When they…arrow_forwardhas hired you to review its sales order procedures for internal control compliance and to make recommendations for changes. You are required to:a. Create a data flow diagram of the current system. b. Create a system flowchart of the existing system. c. Analyze the internal control weaknesses in the system. ; andd. Prepare a system flowchart of a redesigned computer-based systemarrow_forwardListed here are 20 control plans discussed in the chapter. On the blank line to the left of each control plan, insert a P (preventive), D (detective), or C (corrective) to classify that control most accurately. If you think that more than one code could apply to a particular plan, insert all appropriate codes and briefly explain your answer:arrow_forward
- Pkg Acc Infor Systems MS VISIO CDFinanceISBN:9781133935940Author:Ulric J. GelinasPublisher:CENGAGE LAccounting Information SystemsFinanceISBN:9781337552127Author:Ulric J. Gelinas, Richard B. Dull, Patrick Wheeler, Mary Callahan HillPublisher:Cengage Learning