Control procedures
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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.
b. The key-entry operator keyed in the purchase order number as a nine-digit number
instead of an eight-digit number.
c. The date of a customer payment was keyed 2001 instead of 2010.
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.
e. A patient filled out her medical insurance number as 123465 instead of 123456.
f. An applicant for the company stock option plan filled out her employee number as
84-7634-21. The first two digits are a department code. There is no department 84.
g. A high school student was able to log onto the telephone company's computer as
soon as he learned what telephone number to call.
h. The accounts receivable department sent 87 checks to the computer center for processing.
No one realized that one check was dropped along the way and that the
computer therefore processed only 86 checks.
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Control procedures
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a. A bank deposit transaction was accidentally coded with a withdrawal code.
The system should not accept withdrawal codes. Another control is to have different number of characters/fields for deposit and withdrawal codes.
b. The key-entry operator keyed in the purchase order number as a nine-digit number
instead of an eight-digit number.
There should be only eight fields in the system in order to avoid punching of extra digits for purchase orders.
c. The date of a customer payment was keyed 2001 instead of 2010.
The entries made in the customer payments register should be cross verified with the respective transaction. Also, the ...
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- BCom, SGTB Khalsa College, University of Delhi
- MBA, Rochester Institute of Technology
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