Question 2 Seattle Paper Products (SPP) is modifying its sales department payroll system to change the way it calculates sales commissions. Under the old system, commissions were a fixed percentag of dollar sales. The new system is considerably more complex, with commission rates varyin according to the product sold and the total dollar volume of sales. Jason Scott was assigned to us audit software to write a parallel simulation test program to calculate sales commissions a compare them with those generated by the new system. Jason obtained the necessary payr system documentation and the details on the new sales commission policy and prepared program. Jason used the sales transaction data from the last payroll period to run his pro- gram. his surprise, his calculations were $5,000 less than those produced by SPP's new progr Individual differences existed for about half of the company's salespeople. Jason double-chec his program code but could not locate any errors. He selected a salesperson with a discrepancy calculated the commission by hand. The result agreed with his program. He reviewed the ommission policy with the sales manager, line by line, and concluded that he understood th olicy completely. Jason is now convinced that his program is correct and that the error lie PP's new program. He is now asking himself the following questions: What can be done to find the error in the program? (5 ma How could a programming erro rror of this significance be overlooked by expe programmers who thoroughly reviewed and tested the new system? (5 m Is this an inadvertent error, or could it be a fraud? (5n (Total: 15 END OF PAPER Part C. Long Questions (15 marks each, total 30 marks) Question 1 Although the new enterprise resource planning (ERP) system at Alpha Omen Electronics (AO has enabled the company to slash its costs associated with purchasing and accounts payable, Linc Spurgeon, AOE's president, is convinced that additional improvements are needed. She particularly concerned about issues recently raised by LeRoy Williams, vice president manufacturing for AOE. LeRoy is upset because several production runs were delayed at Wichita plant because components that AOE's inventory records indicated as being in s actually were not on hand. There were also delays at the Dayton plant because suppliers eithe not deliver components on time or delivered substandard products. Linda asked Elizabeth V he controller, and Ann Brandt, AOE's vice president of information systems, for ecommendations on how AOE's new ERP system could help solve these problems. Speci- he asked Elizabeth and Ann to address the following issues: What must be done to ensure that AOE's inventory records are current and accurate t (5 m unexpected components shortages like those experienced the Wichita plant? How could the problems at the Dayton plant be avoided in the future? What can be (50 ensure timely delivery of quality components? How could the information system provide better information to guide planning and p (5 (Total: Question 2 Seattle Paper Products (SPP) is modifying its sales department payroll system to change the way it calculates sales commissions. Under the old system, commissions were a fixed percentag of dollar sales. The new system is considerably more complex, with commission rates varyin according to the product sold and the total dollar volume of sales. Jason Scott was assigned to us audit software to write a parallel simulation test program to calculate sales commissions a compare them with those generated by the new system. Jason obtained the necessary payr system documentation and the details on the new sales commission policy and prepared program. Jason used the sales transaction data from the last payroll period to run his pro- gram. his surprise, his calculations were $5,000 less than those produced by SPP's new progr Individual differences existed for about half of the company's salespeople. Jason double-chec his program code but could not locate any errors. He selected a salesperson with a discrepancy calculated the commission by hand. The result agreed with his program. He reviewed the ommission policy with the sales manager, line by line, and concluded that he understood th olicy completely. Jason is now convinced that his program is correct and that the error lie PP's new program. He is now asking himself the following questions: What can be done to find the error in the program? (5 ma How could a programming erro rror of this significance be overlooked by expe programmers who thoroughly reviewed and tested the new system? (5 m Is this an inadvertent error, or could it be a fraud? (5n (Total: 15 END OF PAPER Part C. Long Questions (15 marks each, total 30 marks) Question 1 Although the new enterprise resource planning (ERP) system at Alpha Omen Electronics (AO has enabled the company to slash its costs associated with purchasing and accounts payable, Linc Spurgeon, AOE's president, is convinced that additional improvements are needed. She particularly concerned about issues recently raised by LeRoy Williams, vice president manufacturing for AOE. LeRoy is upset because several production runs were delayed at Wichita plant because components that AOE's inventory records indicated as being in s actually were not on hand. There were also delays at the Dayton plant because suppliers eithe not deliver components on time or delivered substandard products. Linda asked Elizabeth V he controller, and Ann Brandt, AOE's vice president of information systems, for ecommendations on how AOE's new ERP system could help solve these problems. Speci- he asked Elizabeth and Ann to address the following issues: What must be done to ensure that AOE's inventory records are current and accurate t (5 m unexpected components shortages like those experienced the Wichita plant? How could the problems at the Dayton plant be avoided in the future? What can be (50 ensure timely delivery of quality components? How could the information system provide better information to guide planning and p (5 (Total