Assignment from the Reading Essay

Same Person collects daily fees and alluviations the comme il fautty and wedges the wavier forms in that location should be unity person (A) that has visitor fill out the forms and files them, excessively keeping a tally of the add each day. And a turn person (B) collects the cash and deposits it into the lock box.The accountant deposits the cash at the banking concern and wreaks the journal entry The manager at the shutdown of the night could deposit the cash, and the next morning the accountant could make the journal entry. No one checks the exit of wavier forms fill out against the criterion of cash deposited The accountant should alike check the amount of waiver forms filled out against the amount of cash deposited to make sure amount deposited is equal to the number of visitors paying a fee riddle 9-15 Identify one or more ascendence procedures (either general or application take fors, or both) that would guard against each of the adjacent errors or problems. a .) Leslie Thomas, a secretary at the university, indicated that she had worked 40 hours on her prescribed time card. The university paid her for 400 hours worked that week. Payroll clerk reviews all input signals forwards posting, and then the accounting supervisor reviews all checks for reason sufficientness to begin with move them out. b.) The aging analysis indicated that the Grab and Run Electronics partnership account was so far in arrears that the credit manager decided to cut turned any further credit sales to the conjunction until it cle ard up its account. Yet, the followingweek, the manager noted that three new sales had been do to that companyall on credit.Computer control to disallow yield new sales on credit to nodes should be programmed into the system. c.) The Small Company employed Mr. Fineus bill to perform all its accounts receiv commensurate data processing. Mr. Eyeshades 25 years with the company and his unassuming appearance helped him hold in the fa ct that he was embezzling cash collections from accounts receivable to cover his gambling losses at the race track. Employees are required to take vacation and they should be cross-trained to cover each others jobs when they are out. d.) The Blue flock Utility Company was having difficulty with its customer payments. The payment amounts were entered directly into a terminal, and the transaction file thus created was used to update the customer reign file. Among the problems encountered with this system were the application of customer payments to the wrong accounts and the creation of multiple customer bounce back file records for the same account.They should be matching the invoice number and account numbers this review should catch the error. Another control is the customers reviewing their statements to make sure that they are not being over charged, ect. e.) The Landsford brothers had lived in rivet County all their lives. Ben worked for the local mill in the accounts payab le department, and Tom possess the local hardware store. The sheriff couldnt believe that the brothers had created several dummy companies that interchange fictitious merchandise to the mill. Ben had the mill pay for this merchandise in its customary fashion, and he wrote off the missing goods as damaged inventory. Access control to create new vendors, and vendor approval procedures is a good control. Problem 9-16 Identify one or more control procedures (either general or application controls, or both) that would guard against each of the following errors or problems. a.) A bank deposit transaction was accidentally coded with a withdrawal code. Having an input that verified what type of transaction was being inputted by personal. Also, at the end of the night count would reveal this problem because there would be bare money from the deposit in the drawer.b.) The key-entry operator key out in the purchase order number as a nine-digit number instead of an eight-digit number. sti mulation controls through the database form thatlimits the number of digits of 8 that can be identify in by the operator. c.) The date of a customer payment was keyed 2001 instead of 2010. Input control that checks the validity of the data keyed in. If the proper perimeters where set with the application anything that fell short would not be refined until the problem was resolved. d.) A company employee was issued a check in the amount of $135.65 because he had not worked a certain week, but most of his payroll deductions were automatic each week. cut programs could perform edit checks that would result in an error for negative amounts before issuing checks to employees. This is done by judge of sign and the system would kick back the transaction for correction before issuing the check. Payroll deductions should never be programmed to a specific number each week because this does not allow for changes in the number of hours worked and exit al personal manners result in a mistake. e.) A patient filled out her medical insurance number as 123465 instead of 123456. Edit programs could watch over this input error by matching the information with the master file if the correct perimeters were set. f.) An applicant for the company stock option intent filled out her employee number as 84-7634-21.The first two digits are a department code. There is no department 84. Edit programs could detect this input error by matching the information with the master file if the correct perimeters were set. Once its noticed the employee would not be able to continue until they inputted their correct employee number.g.) A high school student was able to log onto the telephone companys computer as before long as he learned what telephone number to call. There should be a user name and password to access any companys computer. h.) The accounts receivable department sent 87 checks to the computer center on for processing. No one watchd that one check was dropped along the way and that the computer therefore processed only 86 checks. Set up a checksum to check the number of checks sent against the number of checks received. They would then realize that they are missing a check and can look for it or get another one and void out the one that was dropped.