Identify Controls

Topics: Accounts receivable, Source code, Money Pages: 2 (403 words) Published: May 25, 2013
Identify Controls18 points (2 points each)

What control or controls would you recommend in a computer processing system to prevent the following situations?

A. Working through the main control console, the night shift computer operator made a change in a payroll program to alter his rate of pay in his favor. -operator should not have access to program documentation (source code) -use password

-console log should be reviewed for unauthorized activity

B. A customer payment recorded on a remittance advice as $55.05 was entered into the computer from a data terminal as $550.50. -batch control totals

C. The magnetic tape containing accounts receivable transactions could not be located. A data processing supervisor said that it could have been put among the scratch tapes available for use in processing. -external file labels

-file library
-enforce & review file access procedures & documentation

D. A customer called to inquire as to why he received a bill for five cents amount due, when postage cost is more than a quarter. -limit check

E. A salesman entering a customer order from a portable data entry terminal entered an incorrect but valid product number. As a result, the customer received a delivery of 100,000 kilograms of industrial salt rather than industrial sugar. Oops…….. -combination field check

-product number matched with description—closed loop verification

F. During data entry of customer payments, the digit 0 in a payment of $123.40 was mistakenly entered as the letter O. As a result, the transaction was not correctly processed. -field check
-all characters are numeric

G. In preparing payroll checks, the computer omitted 12 of a total of 1570 checks that should have been processed. The error was not detected until the supervisors distributed the checks. -batch control totals

-sequence check

H. The master inventory file, contained on a removable magnetic disk, was destroyed by a small fire next...
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