DISTRIBUTED PROCESSING SYSTEM
The internal audit department of a manufacturing company conducted a routine examination of the company’s distributed computer facilities. The auditor’s report was critical of the lack of coordination in the purchase of PC systems and software that individual departments use. Several different hardware platforms, operating systems, spreadsheet packages, database systems, and networking applications were in use. In response to the internal audit report, and without consulting with department users regarding their current and future systems needs, Mr. Marten, the vice president of Information Services, issued a memorandum to all employees stating the following new policies:
1. The Micromanager Spreadsheet package has been selected to be the standard for the company, and all employees must switch to it within the month.
2. All future PC purchases must be Megasoft compatible.
3. All departments must convert to the Megasoft Entree database package.
4. The office of the vice president of Information Services must approve all new hardware and software purchases.
Several managers of other operating departments have complained about Marten’s memorandum.
Required
a. Regarding setting systems standards in a distributed processing environment, discuss factors pertinent to:
1. Computer hardware and software considerations
2. Controls considerations
b. Discuss the benefits of having standardized hardware and software distributed across departments in the firm.
c. Discuss the concerns that the memorandum is likely to create for distributed users in the company.
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