Assumes that when conducting procedures to obtain an understanding of the control structure in the Fiona Company, you checked NO to the following internal control questionnaire items:

• Does access to on-line files requires specific passwords to be entered to identify and validate the terminal user?
• Are control totals established by the user prior to submitting data for processing? (order entry application subsystem).
• Are input control totals reconciled to output control totals? (Order entry application sub system).

Required:

Describe the errors, irregularities, or misstatements that could occur due to the weaknesses indicated by the lack of controls.