Part I

There are two categories of internal control (automated or non-automated) relating to information systems. Identify the category of internal control for each of the following two scenarios:

1. A company installs a card reader outside a computer room and requires employees to scan their staff card before they can enter the room. Not all the staff can access the computer room. What is the name of this internal control category? (1 mark)

2. Inside the computer room, employees use their usernames and passwords to access the Enterprise Resource Planning (ERP) system. Only designated employees can access the accounting module of the ERP system. What is the name of this internal control category?(1 mark)

Part II

Internal controls in information system perform three important functions. Identify the function for each of the following:

1. When a sales order clerk inputs sales order into an ERP system, the system validates the customer name and address. What function does this internal control perform? (1 mark)

2. Using query, the sales order clerk calculates the total of each order and compare it with the overall total that the ERP system generates. What function does this internal control perform? (1 mark)

3. The sales order clerk adjusts a sales order after he identifies an error in the order. (1 mark)

Part III

COSOs Enterprise Risk Management framework has eight components. Identify one component for each of the following:

1. A company hires qualified accountants as Accounting Manager. (2 marks)

2. A company performs stock count to compare the actual quantities with that stored in the information system. (2 marks)

3. A company subcontracts a third-party security firm to protect its office premises. (2 marks)

4. A company uses ABSS accounting software to generate divisional financial statements for evaluating managers achievements based on their forecast. (2 marks)