In planning the annual audit of Blockchain Corporation, you note that the company has a number of user-operated computers in use in various locations. One of these computers in located the stores department which has the responsibility for disbursing stock items and for maintaining inventory records. In your audit, you find that one employee receives the requisitions for stores, disburses the stock, maintains the records, operates the computer, and authorizes adjustments to the total amounts of stock recorded by the computer.

When you discuss the applicable controls with the department manager, you are told that this computer is assigned exclusively to that department and therefore, the manager contends that it does not require the same types of controls applicable to large IT systems. Required:

a. Comment on the managers contention.

b. Discuss five types of control that would apply to this microcomputer application. Cite your sources.