ACC 676 Module Two Case Study Template

 

 

Part One: Controls

1. Describe a suggested preventative control to help minimize the risks provided.

Risk: The risk is provided for you. You do not need to insert anything in this column.	Suggested Control: Replace the bracketed text with a full sentence describing the control you suggest to mitigate or minimize the risk described in the "Risk" column.
An order is shipped to a customer with a bad credit rating.	[Insert your response here.]
An invoice's quantity shipped does not match shipping documents.	[Insert your response here.]
Invoices contain different prices and/or terms than the customer expects.	[Insert your response here.]
Cash receipts from the customer are incorrectly applied to the wrong customer or invoice.	[Insert your response here.]
People who have access to incoming customer payments could intercept incoming cash and then make a credit memo to cover their tracks.	[Insert your response here.]
Manual journal entries are posted to wrong accounts in the general ledger.	[Insert your response here.]
Duplicate invoice numbers are assigned.	[Insert your response here.]

 

Part Two: Summary

1. In addition to the risks provided, describe an additional risk related to billing and revenue recognition.

 

[Insert your response here.]

 

1. Analyze the difference between manual and automated controls. Include the following in your response:
   1. The advantages and disadvantages of manual and automated controls

 

[Insert your response here.]

 

1. Describe an additional detective manual control that the organization could implement based on the risks described.

 

[Insert your response here.]

 

 

Scenario You are an IT auditor for Style for All, an upstart clothing company. They are attempting to cut costs while keeping their risks low. Given thetwo competing goals of cutting costs but minimizing risks, you must determine if this can be done based on their billing process. Yoursupervisor has asked you to come up with preventative controls to help minimize risks. To do this, you must examine various risks and come upwith preventative controls to minimize those risks. In addition, you must consider the difference between manual and automated controls, aswell as detective manual controls. This case study will help you with Project Two, where you will be required to evaluate potential risk improvements for the identified risk areasand their impacts on the specific organization. Directions In this assignment, you will determine a preventative control for minimizing each provided risk within the billing process. There are two partsto this assignment. In part one, you will use the Module Two Case Study Template to complete the risk control matrix for each provided risk. Inpart two, you will write a brief summary in the space provided in the template. Specifically, you must address the following rubric criteria:Part One: Controls 1. Provide a suggested preventative control to help minimize each of the given risks. Part Two: Summary 1. Describe an additional risk related to billing and revenue recognition in addition to the risks provided.2. Analyze the difference between manual and automated controls. Include the following in your response:A. The advantages and disadvantages of manual and automated controls 3. Describe an additional detective manual control that the organization could implement based on the risks described.