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Typed paper: 1.5 pages, us APA to site all the resources. Short answers like th example below. You can find the answers (which type of internal control) online by “copy and paste” the paste. But...

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Typed paper: 1.5 pages, us APA to site all the resources. Short answers like th example below. You can find the answers (which type of internal control) online by “copy and paste” the paste. But stating that an input control is sufficient. Instead, identify exactly which input control you recommend and why you believe that specific control would be best. Stating that segregation of duties is appropriate is not sufficient. Instead, specify what duties need to be segregated. You are not limited to the controls explained in the Pearson custom text. Some of the controls we have already discussed in class may be appropriate in specific scenarios. Identify at least one internal control for each scenario below. If you feel more than one control is appropriate, identify which control you feel is best, and why you feel it is better than the other controls. Be very specific in your answers. For example, stating that an input control is appropriate is not sufficient. Instead, identify exactly which input control you recommend and why you believe that specific control would be best. Stating that segregation of duties is appropriate is not sufficient. Instead, specify what duties need to be segregated. You are not limited to the controls explained in the Pearson custom text. Some of the controls we have already discussed in class may be appropriate in specific scenarios. Remember that preventive controls are best, but detective controls are necessary to catch the mistakes or fraud that slips through the preventive controls. I’ve completed item a as an example. a. The hours worked field in a payroll transaction record contained the value 400 instead of 40. As a result, the employee received a paycheck for $6,257.24 instead of $ XXXXXXXXXXLimit check on the hours worked field. If overtime is not allowed or expected, the limit should be 40 hours. b. The accounts receivable file was destroyed because it was accidentally used to update accounts payable. c. During processing of customer payments, the digit 0 in a payment of $204 was mistakenly typed as the letter “O”. As a result, the transaction was not processed correctly, and the customer erroneously received a letter that the account was delinquent. d. A salesperson mistakenly entered an online order for 50 laser printers instead of 50 laser printer toner cartridges. e. A 20-minute power brownout caused a mission-critical database server to crash, shutting down operations temporarily. f. A fire destroyed the data center, including all backup copies of the accounts receivable files. g. After processing sales transactions, the inventory report showed a negative quantity on hand for several items. h. A customer order for an important part did not include the customer’s address. Consequently, the order was not shipped on time, and the customer called to complain. i. When entering a large credit sale, the clerk typed in the customer’s account number as 45982 instead of XXXXXXXXXXThat account number did not exist. The mistake was not caught until later in the week, when the weekly billing process was run. Consequently, the customer was not billed for another week, delaying receipt of payment. j. A visitor to the company’s website entered 400 characters into the five-digit zip code field, causing the server to crash. k. Two traveling sales representatives accessed the parts database at the same time. Salesperson A noted that there were still 55 units of part 723 available and entered an order for 45 of them. While salesperson A was keying the order, salesperson B, in another state, entered an order for 33 of the part. Both sales reps promised their customer next-day delivery. Salesperson A’s customer, however, learned the next day that the part would have to be backordered. The customer canceled the order and vowed never again to do business with the company. l. A customer filled in the wrong account number on the portion of the invoice being returned with payment. Consequently, the payment was credited to another customer’s account. m. A batch of 73 time sheets was sent to payroll department for weekly processing. Somehow, one of the time sheets did not get processed. The mistake was not caught until payday, when one employee complained about not receiving a paycheck. n. Sunspot activity resulted in the loss of some data being sent to the regional office. The problem was not discovered until several days later, when managers attempted to query the database for the information.
Answered Same Day Dec 23, 2021

Solution

Robert answered on Dec 23 2021
130 Votes
Internal control
Internal control is one of the integral part of an organization. It is a system which controls
different types of risks,
inging into focus different frauds of the company, assuring the
transparency of the company which helps in a reliable financial reporting. It focuses on
achieving the goal of the organization with an aim that ensures that the operations of the
organization are done effectively and efficiently. The major concern of Internal control is
concerned with the optimal and effective utilization of assets. Assets being the most important
part of the organization help in generating services and benefits. Internal control focuses on
effective and efficient use of assets.
a. In the first scenario, the time worked on field in the payroll sheet was mentioned as 400
instead of 40. So the paycheck that was received by the by the employees was $6257.24 instead
of $654.32. For this it is important for the organization to have data control system in the
organization. There should be a limit check on the hours that are worked by the employees.
. For the second scenario, the company destroyed accounts receivables file as it was used to
update accounts payable. To have a check on it, the organization should have processing
integrity control. For this all the files should have a proper heading which will help in identifying
the content and will help in reducing the risk for inco
ect marking.
c. For the third scenario i.e. During processing of customer payments, the digit 0 in a payment of
$204 was mistakenly typed as the letter “O.” As a result, the transaction was not processed
co
ectly and the customer e
oneously received a letter that the account was delinquent, for this
it is important for the organization to have a validity check for which the company should
perform a check that all the numbers are entered properly.
d. A salesperson mistakenly entered an online order for 50 laser printers instead of 50 laser
printer...
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