Question

QUESTION 2 The following is a list of 10 control plans and ten system failures that have control implications. Match the letter from the list of the best control plan to prevent the system failure from occurring. A letter should be used only once I can approve all customer orders. a. b. Any correcting entries to be made by the customer service representative are done at a later time Procedures for rejected inputs rather than as the data is input into the system. Some customer orders are never corrected and re- c. entered g ticket with bar codes) d. Populate inputs with master data The finished goods warehouse delivers goods to the shipping department, accompanied by the picking ticket. After checking the goods against the picking ticket, the shipping employee signs the 8 Preformatted screens picking ticket and gives it to the warehouse employee. Then the shipping department prepares a three-part shipping notice, one copy of which serves as the packing slip. A recent audit discovered Review open sales orders (tickler file) that a dishonest warehouse employee had been forging picking ticket documents, thereby having goods shipped to an accomplice 9 One-for-one checking of goods, picking ticket, sales order h. Customer credit check Customer service representatives record customer orders on prenumbered order forms, and then forward the forms to the corporate office in Orlando for processing J.B. Wrigley, one of Mandates i. top salesmen, had a very good week he mailed 55 customer orders to the corporate office on Friday aftemoon. Unfortunately, they were misplaced in the mail and did not reach Orlando until Independent shioping authorization three weeks later. Needless to say, those 55 customers were more than a little displeased at the amount of time that Mandate took to fill their orders Enter data close to where customer order is received Customer service representative can manually key in order data at one of many PCs. In the first two weeks of operation, every sales order produced by the computer was missing a ship-to" address. The customer service representative can enter a customer code with no matching customer master data and no authorized customer. Therefore, it is possible to make invalid entries into the system Proper comparisons are not made to ensure that the shipping notice inputs are represented by an actual shipment of goods. The OE/S system does not advise the customer service representative to check the data entries before moving on t o the next order Customers have complained that their invoices are not correct. The amount of goods received does not correspond to the number of items on the invoices. After some investigation it was determined that shipping clerks have made errors in recording the amount shipped. Several shipments have not been made in a timely manner

Answer 1

1. f. Review open sales orders (tickler file)

2. d. Populate inputs with master data

3. c. Turnaround document (picking ticket with bar codes)

4. a. Online prompting

5. e. Preformatted screens

6. h. Customer credit check

7. g. One-for-one checking of goods, picking ticket, sales order

8. b. Procedures for rejected inputs

9. j. Independent shipping authorization

10. i. Enter data close to where customer order is received