Internal Controls, accounting homework help

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Phegqbt

Business Finance

Description

Reference Case Study 8-35 in the textbook.

As you are planning the annual audit of Norton Corporation, you note that the company has a number of user-operated computers in use in various locations. One of the machines has been installed in the stores department, which has the responsibility for disbursing stock items and for maintaining stores’ records. In your audit, you find that one employee receives the requisitions for stores, disburses the stock, maintains the records, operates the computer, and authorizes adjustments to the total amounts of stock recorded by the computer.

When you discuss the applicable controls with the department manager, you are told that the user-operated computer is assigned exclusively to that department. Therefore, the manager contends that it does not require the same types of controls applicable to large IT systems.

Required:

  1. Comment on the manager’s contention.
  2. Discuss five types of control that would apply to this microcomputer application.

Your paper should be 3-4 pages in length. Follow APA format. Include a title page and reference page. Use two outside academic sources other than the textbook, course materials, or other information provided as part of the course materials.

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Explanation & Answer

Here you go buddy.

Running head: APPLICATION CONTROLS

1

Application controls
Student’s name
Professor’s name
University affiliation
Date

2

APPLICATION CONTROLS
Internal Controls

I do disagree with the manager’s sentiments this is basically because the same useroperated computers are used to conduct various operations of Norton Company. These machines
have the same types of applications used in other computers within the Company. Because they
directly deal with the Company's day to day operations, it is necessary for applications controls
to be incorporated into these computers to boost transparency, accuracy, reliability, and
accountability. These application controls will ensure that all operations conducted by these useroperated computers are legitimate and abide by the rules and regulations or code of conduct that
govern Norton Corporation.
Application controls basically refer to controls incorporated within a Company’s
application systems and business processes for the following reasons; first to ensure that input
data is complete, accurate and correct. Secondly, to ensure that the data stored is not only
accurate but also complete. It also ensures that the output da...


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