Easy Europe Ltd (EE) is a large private company which operates a network of travel agencies throughout Middletown. EE uses a centralised on-line system to maintain its accounting records. Each branch accesses this system through PCs linked to the central computer network.

Information technology policies are developed and approved by the board of directors, which takes an active role in maintaining EE’s computer resources. EE has a computer department, staffed by the programmer, the analyst and the computer operator, who perform the following functions:

Programmer e Establishes passwords and user profiles based on advice from the personnel department.

• Makes changes to programs as required.

Analyst

• Liases with user groups and informs the programmer of changes required.

• Performs tests on changes to programs.

Computer operator

• Ensures system functions smoothly on a day-to-day basis.

• Answers users’ queries.

• Distributes output from the system.

The computer department has no access to source documents, nor does it have the authority to initiate or approve transactions. The department reports to the finance director, who acts as the department’s board representative.
The systems used by EE were developed about two years ago by a specialised software company. They have performed well over this period, with few problems being experienced.

The programmer, based on user feedback relayed by the analyst, has made minor modifications to the systems. In all cases, the analyst checks that the modifications meet user requirements prior to signing off on the changes. Once the changes receive this approval, the computer operator loads the new version of the program into production, as supplied by the programmer. User documentation is updated by the programmer and distributed to all users to coincide with the release date of the new program.
Being in the travel industry, EE has to meet certain specialised reporting requirements.
At the financial controller’s request, the programmer has written certain specialised utility programs to assist in gathering the required data. The utility programs were tested by the financial controller before the computer operator loaded them onto the financial controller’s PC.

Required

(a) Identify the strengths of the company’s general computer controls.

(b) Identify the weaknesses in the company’s general computer controls and suggest costeffective ways each weakness could be eliminated.