Instructions List (1 10) each System Failure Match the Control plans listed Include a brief at least two sentence explanation of your choices The explanation should accompany your Control Plan choice The following is a list of 12 control plans from this chapter or from Chapters 8, 9, 10, 11, and 12 These are followed by a list of 10 system failures that have control implications Match the 10 system failures with a control plan that would best prevent the system failure from occurring Because there are 12 control plans, you should have two letters left over Control Plans Digital signature Tickler file of open POs and receiving reports Procedures for rejected inputs Compare input data with master data (e g , vendor master data) Segregate duties among purchasing, receiving, and accounts payable Program change controls Reconcile bank account Reconcile run to run totals Review of a cash planning report Match invoice, PO, and receiving report Access control software Segregate duties between accounts payable and cashier System Failures Wilson Inc ordered 30 circuit breakers from Elon Electric Only 25 breakers were received the other five were on back order at Elon An invoice for 30 breakers was received at Wilson, recorded, and eventually paid Trent Company often does not receive invoices in a timely manner and cannot record them in time to take advantage of payment discounts Norma, the cashier at Scarsdale Company, has been writing checks to herself This fraud has gone undetected for years At East Bend Company, all incoming invoices are matched against open POs and receiving reports When Juan, the purchasing manager, is performing this match, he sometimes cant find a PO, and so he prepares a PO to cover the invoice India Company receives batches of vendor invoices once each day via an EDI feed from a VAN Some of these invoices are from vendors that do not do business with India Westover Corp often loses discounts on payments to vendors because of cash flow problems Allie, the AP clerk at Fuller Company, has grown tired of resolving discrepancies among vendor invoices, POs, and receiving reports To make his life easier and to reduce rejects, she changed the AP invoice program to allow large variances Twice each week, Nellie, the AP clerk at Zagreb Company, selects a batch of vendor invoices and sends them to Gary, the clerk in cash disbursements Occasionally, after Gary makes the electronic payments, it is discovered that not all the payments were made or that some were made incorrectly Searcy, Inc receives electronic invoices through a Web portal hosted by a third party Some of these invoices are not correct After investigation, it is discovered that the invoices were altered in transit from the vendor Gary, the cashier, looks over the invoices that he has received and makes payments as needed Some of those payments are to bogus vendors who Gary knows have not provided any goods or services to Rainbow Include an explanation for your choice of at least two sentences Chapter 14 Assignments Chapter 14 Writing Due October 10 by 11 59 p m PART I Following is a list of five control plans from this chapter (or from earlier chapters and tailored to the HR management and payroll processes of this chapter) Listed next are four process failures that have control implications Write the numbers 1 through 4 on your solution sheet Next to each number, insert one letter from the preceding list indicating the control plan that would best prevent the process failure from occurring Also, give a brief, one to two sentence explanation of your choice A letter should be used only once, with one letter left over Control Plans Hash totals of employee ID numbers Electronic time management system Specific approval of HR payroll changes Imprest payroll bank account One for one checking of hours per attendance time data and hours shown on pay stubs Process Failures An employee in the HR department prepared a bogus change of pay form to increase his salary by $25 per week The form was submitted for processing and was entered into the system without being challenged Attendance time data are often not entered, not entered in a timely manner, or not accurate Each weekly pay period, a check is drawn on the general cash account and deposited to the payroll bank account in an amount estimated to be sufficient to cover the actual total of payroll checks issued that week As a result, the payroll account runs a balance of several thousand dollars (non interest bearing), a situation that the newly hired treasurer has questioned In entering attendance time data, the data entry clerk misread all 7s as 9s Although some time data were rejected, other data were processed against wrong employees, who happened to have a 9 instead of a 7 in the comparable position in their employee ID number Include an explanation for each of your choices PART 2 Following is a list of 10 control plans from this chapter (or from earlier chapters and tailored to the HR management and payroll processes of this chapter) Listed next are eight statements describing either the achievement of a control goal (i e , a process success) or a process deficiency (i e , a process failure) Write the numbers 1 through 8 on your solution sheet Next to each item insert one letter from the preceding list indicating the best control to achieve the desired goal or to address the process deficiency described A letter should be used only once, with two letters left over Include a two sentence explanation for each of your choices Control Plans Review of all HR changes for compliance with union and government regulations Computer calculations of gross pay, deductions, and so on Preformatted screens Fidelity bonding Online data entry of HR payroll data Periodic performance reviews Preformatted HR payroll screens Automatic preparation of attendance time sheets for the next pay period (i e , turnaround documents) Programmed editsreasonableness checks Use of a skills inventory data Control Goals or Process Deficiencies Should have prevented a data entry error of keying all hours worked with an extra digit (40 hours entered as 400, 45 hours as 450, and so on) Helps to achieve efficiency of resource use (i e , by reducing time needed for data entry) and accuracy of data entry Should have prevented the organizations being sanctioned for failure to abide by Equal Employment Opportunity (EEO) guidelines Should have prevented a data entry error of keying all zeros as the letter o (40 entered as 4o, ID 3062 entered as 3o62, and so on) Would not have prevented employee dishonesty, but would have helped the organization recover from such dishonesty Helps in assigning employees to particular jobs Precludes time card input errors by having certain data preprinted on the attendance time sheet Helps ensure employee job satisfaction by providing employees with appropriate feedback Include an explanation for each of your choices

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Instructions: List (1-10) each System Failure. Match the Control plans listed. Include a brief at least two sentence explanation of your choices. The explanation should

Instructions: List (1-10) each System Failure. Match the Control plans listed. Include a brief at least two sentence explanation of your choices. The explanation should accompany your Control Plan choice.

The following is a list of 12 control plans from this chapter or from Chapters 8, 9, 10, 11, and 12. These are followed by a list of 10 system failures that have control implications. Match the 10 system failures with a control plan that would best prevent the system failure from occurring. Because there are 12 control plans, you should have two letters left over.

Control Plans
1. Digital signature
2. Tickler file of open POs and receiving reports
3. Procedures for rejected inputs
4. Compare input data with master data (e.g., vendor master data)
5. Segregate duties among purchasing, receiving, and accounts payable
6. Program change controls
7. Reconcile bank account
8. Reconcile run-to-run totals
9. Review of a cash planning report
10. Match invoice, PO, and receiving report
11. Access control software
12. Segregate duties between accounts payable and cashier
System Failures
1. Wilson Inc. ordered 30 circuit breakers from Elon Electric. Only 25 breakers were received; the other five were on back order at Elon. An invoice for 30 breakers was received at Wilson, recorded, and eventually paid.
2. Trent Company often does not receive invoices in a timely manner and cannot record them in time to take advantage of payment discounts.
3. Norma, the cashier at Scarsdale Company, has been writing checks to herself. This fraud has gone undetected for years.
4. At East Bend Company, all incoming invoices are matched against open POs and receiving reports. When Juan, the purchasing manager, is performing this match, he sometimes cant find a PO, and so he prepares a PO to cover the invoice.
5. India Company receives batches of vendor invoices once each day via an EDI feed from a VAN. Some of these invoices are from vendors that do not do business with India.
6. Westover Corp. often loses discounts on payments to vendors because of cash flow problems.
7. Allie, the AP clerk at Fuller Company, has grown tired of resolving discrepancies among vendor invoices, POs, and receiving reports. To make his life easier and to reduce rejects, she changed the AP invoice program to allow large variances.
8. Twice each week, Nellie, the AP clerk at Zagreb Company, selects a batch of vendor invoices and sends them to Gary, the clerk in cash disbursements. Occasionally, after Gary makes the electronic payments, it is discovered that not all the payments were made or that some were made incorrectly.
9. Searcy, Inc. receives electronic invoices through a Web portal hosted by a third party. Some of these invoices are not correct. After investigation, it is discovered that the invoices were altered in transit from the vendor.
10. Gary, the cashier, looks over the invoices that he has received and makes payments as needed. Some of those payments are to bogus vendors who Gary knows have not provided any goods or services to Rainbow.
Include an explanation for your choice of at least two sentences.
Chapter 14: Assignments
Chapter 14: Writing

Due: October 10 by 11:59 p.m.

PART I: Following is a list of five control plans from this chapter (or from earlier chapters and tailored to the HR management and payroll processes of this chapter). Listed next are four process failures that have control implications. Write the numbers 1 through 4 on your solution sheet. Next to each number, insert one letter from the preceding list indicating the control plan that would best prevent the process failure from occurring. Also, give a brief, one- to two-sentence explanation of your choice. A letter should be used only once, with one letter left over.

Control Plans
1. Hash totals of employee ID numbers
2. Electronic time management system
3. Specific approval of HR/payroll changes
4. Imprest payroll bank account
5. One-for-one checking of hours per attendance time data and hours shown on pay stubs
Process Failures
1. An employee in the HR department prepared a bogus change-of-pay form to increase his salary by $25 per week. The form was submitted for processing and was entered into the system without being challenged.
2. Attendance time data are often not entered, not entered in a timely manner, or not accurate.
3. Each weekly pay period, a check is drawn on the general cash account and deposited to the payroll bank account in an amount estimated to be sufficient to cover the actual total of payroll checks issued that week. As a result, the payroll account runs a balance of several thousand dollars (non-interest-bearing), a situation that the newly hired treasurer has questioned.
4. In entering attendance time data, the data entry clerk misread all 7s as 9s. Although some time data were rejected, other data were processed against wrong employees, who happened to have a 9 instead of a 7 in the comparable position in their employee ID number.
Include an explanation for each of your choices.

PART 2: Following is a list of 10 control plans from this chapter (or from earlier chapters and tailored to the HR management and payroll processes of this chapter). Listed next are eight statements describing either the achievement of a control goal (i.e., a process success) or a process deficiency (i.e., a process failure). Write the numbers 1 through 8 on your solution sheet. Next to each item insert one letter from the preceding list indicating the best control to achieve the desired goal or to address the process deficiency described. A letter should be used only once, with two letters left over. Include a two sentence explanation for each of your choices.

Control Plans
1. Review of all HR changes for compliance with union and government regulations
2. Computer calculations of gross pay, deductions, and so on
3. Preformatted screens
4. Fidelity bonding
5. Online data entry of HR/payroll data
6. Periodic performance reviews
7. Preformatted HR/payroll screens
8. Automatic preparation of attendance time sheets for the next pay period (i.e., turnaround documents)
9. Programmed editsreasonableness checks
10. Use of a skills inventory data
Control Goals or Process Deficiencies
1. Should have prevented a data entry error of keying all hours worked with an extra digit (40 hours entered as 400, 45 hours as 450, and so on)
2. Helps to achieve efficiency of resource use (i.e., by reducing time needed for data entry) and accuracy of data entry
3. Should have prevented the organizations being sanctioned for failure to abide by Equal Employment Opportunity (EEO) guidelines
4. Should have prevented a data entry error of keying all zeros as the letter o (40 entered as 4o, ID# 3062 entered as 3o62, and so on)
5. Would not have prevented employee dishonesty, but would have helped the organization recover from such dishonesty
6. Helps in assigning employees to particular jobs
7. Precludes time card input errors by having certain data preprinted on the attendance time sheet
8. Helps ensure employee job satisfaction by providing employees with appropriate feedback
Include an explanation for each of your choices.