case16soln

case16soln - ESD264/1.264 Lecture 16 case studies Fall,...

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ESD264/1.264 Lecture 16 case studies Fall, 2006 Based on your general experience and on reading chapters 1-4 in Anderson, discuss the two cases below. Short answers: two pages or less per case study. Be prepared to discuss them in class. A. Public transport system with automated fare collection based on cash/tokens versus smart cards. 1. Prepare the same discussion of a public transit system as for the bank in Anderson chapter 1, section 1.1. Distinguish between a cash/token based system and a smartcard-based system; the core, risks, public face, and controls are quite different. Answer questions 1-6 separately for a cash-token system and a smartcard system. Core in cash and token systems: Core is the accounting function at bus depots and rail terminals that accepts cash and tokens from fareboxes and turnstiles, counts them, associates them with stations or buses (and staff who collected the cash and tokens). Core in smart card systems: Core is the bookkeeping function in headquarters that tracks smartcards sold by machine, Web, and all other sales channels. Internal risks in cash and token systems: Theft by employees, either those collecting the money, the supervisors in the field, or the employees and supervisors at the depots and terminals. Internal risks in smartcard systems: Accounting irregularities in headquarters staff who account for sales and move funds between accounts; they have the authority to make adjustments, and that can be abused. 2.
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This note was uploaded on 12/06/2011 for the course ESD 1.264j taught by Professor Georgekocur during the Fall '06 term at MIT.

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case16soln - ESD264/1.264 Lecture 16 case studies Fall,...

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