Internal Control and Computer Based Information Systems

Of current sales prices should be housed in the

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of current sales prices should be housed in the computer and updated as prices  change. The computer should then be programmed to price the invoices. B. Ness was able to access data files for the purpose of establishing an unauthorized  account. Programmers should not have access to data files except for testing and debugging programs. Moreover, formal authorization of new accounts should be a part of the internal control system. C. The foremen were able to alter pay rates and retain terminated employees on the payroll. To correct this weakness, all new hires and  terminations, as well as pay rate changes, should require authorization of the human 
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resources department. A current master list of employee numbers and pay rates should  then be housed in the computer, and the computer programmed to perform validity tests of rates and numbers as payrolls are processed. D. Controls were not designed to prevent vendor errors. Protocol controls should be installed to detect and log errors; and the EDI hardware should include an echo check that returns messages from the vendor’s computer to Hilo’s computer to verify  correctness of orders received by the vendor.
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  • Spring '10
  • Mr.Cula
  • Accounting, C. processing data

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