1. Imagine that you are the manager of Information Technology department working on a system conversion for an Accounting Department. Consider the activities in Accounts Payable and Accounts Receivables, and identify those duties that may be incompatible for a manual system but highly effective in an automated system. Compare and contrast the general and application controls used in both systems. Recommend an approach to automating the process. Explain your answer.
2. Assess the risks that are inherent in automating manual accounting systems to an IT environment, giving consideration to the factors that influence supervision, the firm’s obligation to maintain adequate accounting records, and transaction integrity. Recommend a strategy to minimize the risk. Provide support for your recommendation.
3. "Certified Public Accountant (CPA) Qualifications" Please respond to the following:
a) From the e-Activity, evaluate the gaps between the educational requirements and the expectations for independence and ethical considerations, providing a recommendation for how these gaps may be closed. Explain whether the educational requirements address the standards imposed by Sarbanes-Oxley (SOX). Justify your answer.
b) Evaluate the impact of SOX on the education and training requirements to become a CPA who provides audit and advisory services, indicating whether these additional qualifications provide adequate assurance to prospective investors that were anticipated by the SOX regulations. Justify your answer.