Internal Control, accounting homework help

User Generated

pc26380

Business Finance

Description

Internal Control

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.

(CIA, adapted)

Your paper should be 3-4 pages in length. Follow APA format, according to CSU-Global Guide to Writing and APA Requirements. 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.

User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

Attached.

Running head: INTERNAL CONTROL SYSTEMS

1

Internal Control Systems
Institution Affiliation:
Date:

INTERNAL CONTROL SYSTEMS

2

The impact of the information breach may affect the company in a similar way as big
companies that have complex information systems. Therefore, the IT system controls can be the
same as the large companies. Small and big companies have business secrets used in business
competition. When such information is known by their competitors, they will not compete
effectively. Therefore, despite the type and size of the organization, same types of controls are
used.
Organization control
Organization control is the control that focuses on policies. They are executed by
allocating the responsibilities as well as making policies to be used when handling the
organization systems in all departments. All departments should implement the controls and
establish a clear reporting structure. The organization should define the department sections and
assign the responsibilities in all sections in the department. The organization should have policies
and procedures to follow in the process. In addition, the organization should all information and
activities done in the department are validated according to the proc...


Anonymous
Great! Studypool always delivers quality work.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Related Tags