Assignment from the Reading Essay

Same Person collects daily fees and m demises the cash in and excites the wavier forms on that point should be sensation person (A) that has visitor fill out the forms and files them, similarly keeping a tally of the lean each day. And a blurb person (B) collects the cash and deposits it into the lock box.The accountant deposits the cash at the depose and raises the journal entry The manager at the end of the night could deposit the cash, and the next morning the accountant could make the journal entry. No one checks the moment of wavier forms alter out against the heart and soul of cash deposited The accountant should withal 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 conundrum 9-15 Identify one or more restrainer procedures (either general or application check offs, or both) that would guard against each of the sp ar-time activity errors or problems. a .) Leslie Thomas, a secretary at the university, indicated that she had worked 40 hours on her verit open(a) time card. The university paid her for 400 hours worked that week. Payroll clerk reviews all comments ahead posting, and then the accounting supervisor reviews all checks for reason adequate to(p)ness onward send them out. b.) The aging analysis indicated that the Grab and Run Electronics follow account was so far in arrears that the credit manager decided to cut slay any further credit sales to the social club until it cleared up its account. Yet, the following week, the manager noted that three new sales had been make to that companyall on credit.Computer control to disallow military issue new sales on credit to customers should be programmed into the system. c.) The Small Company employed Mr. Fineus flyer to perform all its accounts receivable data processing. Mr. Eyeshades 25 years with the company and his unassuming appearance helped him hold off the fact 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 weed 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 get the hang file. Among the problems encountered with this system were the application of customer payments to the wrong accounts and the creation of multiple customer see to it 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 totality County all their lives. Ben worked for the local mill in the accounts p ayable 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 regular 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 spear carrier money from the deposit in the drawer.b.) The key-entry operator name in the acquire order number as a nine-digit number instead of an eight-digit numbe r. infix controls through the database form that limits the number of digits of 8 that can be key 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 fitting perimeters where set with the application anything that fell short would not be processed 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 department deductions were automatic each week. slue programs could perform edit checks that would result in an error for negative amounts before issuing checks to employees. This is done by shield 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 go a personal manner alw ays result in a mistake.e.) A patient filled out her medical insurance number as 123465 instead of 123456. Edit programs could expose 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 forge 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 in short 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 concern for processing. No one witnessd that one check was dropped alo ng 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.