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A. In exercise PP16, you settled production and viewed a report comparing actual to planned (budgeted) results. Budgets are a most common control procedure within
A. In exercise PP16, you settled production and viewed a report comparing actual to planned (budgeted) results. Budgets are a most common control procedure within many organizations. Explain how each transaction-related control objective (discussed in the SAP Chapter 1 text) is enhanced by comparing actual to planned/budgeted results. B. Is an actual to planned/budget comparison a preventive control or is it a detective control? Explain. C. Review the PP exercises. Identify at least 2 pairs of exercises (with reference to the exercise numbers) that are incompatible in a real business setting as they would violate Segregation of Duties. Briefly explain why using "custody, authorization, recording." (Example: PP12 involves custody of inventory goods received from production and PP13 is recording the settlement of goods receipt which creates the JE) Orders: Actual/Plan/Variance
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