In the perfect work environment people who perform transaction do not approve them; employees who handle cash receipts do not perform bank reconciliation, etc. Any conflict of interest or possible potential for fraud should be avoided.

MORE QUESTIONS FOR WEEK FOUR

  1. In the perfect work environment people who perform transaction do not approve them; employees who handle cash receipts do not perform bank reconciliation, etc. Any conflict of interest or possible potential for fraud should be avoided. This is all great in medium to large organizations that can afford full staff. What about small companies, with limited staff? How is the principle of job separation handled there?

  2. In constructing effective systems of internal control, it is paramount to identify all the vulnerable points in each system. Critical records and programs must be particularly protected against unauthorized changes. Attention must also be given to ensuring that staff in critical areas are properly trained and that duties are appropriately segregated. Any other ideas?

  3. Discuss some of the unique control risks associated with the use of PCs and laptop computers compared to using mainframes. List what you consider to be three of the most important control procedures that should be implemented for microcomputers. For each control procedures, give your reason for including this procedure as an important control.

  4. To achieve effective separation of duties within a company’s IT environment, the company’s accounting and information processing subsystems should be separated from the departments that use data and perform operational activities. Discuss some of the ways this “separation of duties” is achieved. Please support your statement with scholarly references.

ANSWER EACH QUESTION IN 200 OR MORE WORDS.

USE CITATIONS AND REFERENCES.