The following is a list of 12 control plans from this chapter, followed by a list of 10 examples of System Failures or problem situations 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 Batch sequence check Confirm input acceptance Programmed edit checks Manual agreement of batch totals Online prompting Cumulative sequence check Electronic approvals Document design Procedures for rejected inputs Compare input data with master data Turnaround documents Digital signatures System Failures At Wynne Company, customer orders are received in the mail in the sales department, where clerks enter individual orders into the companys computer system and then file the completed orders in a filing cabinet Customers should receive an acknowledgement for each of their orders When the customer fails to receive an acknowledgement, the customer calls to inquire Inevitably, the sales clerk will find the customers order filed with other customer orders that had been entered into the computer The missing orders are always marked as ENTERED The tellers at Mason Bank have been having difficulty reconciling their cash drawers All customer transactions such as deposits and withdrawals are entered online at each teller station At the end of the shift, the computer prints a list of the transactions that have occurred during the shift The tellers must then review the list to determine that their drawers contain checks, cash, and other documents to support each entry on the list Data entry clerks at Dora Company use networked PCs to enter batches of documents into the computer Recently, a number of errors have been found in key numeric fields The supervisor would like to implement a control to reduce the transcription errors being made by the clerks At Central Inc , clerks in the accounting offices of the companys three divisions prepare prenumbered general ledger voucher documents Once prepared, the vouchers are given to each offices data entry clerk, who keys them into an online terminal The computer records whatever general ledger adjustment was indicated by the voucher The controller has found that several vouchers were never recorded, and some vouchers were recorded twice Purchase orders at Hickory Corp are prepared online by purchasing clerks Recently, the purchasing manager discovered that many purchase orders are being sent for quantities far greater (i e , incorrect quantities) than would normally be requested At Quality Brokers, Inc , a clerk on the trading floor mistakenly entered the dollar amount of a trade into the box on the computer screen reserved for the number of shares to be sold and then transmitted the incorrect trade to the stock exchanges computer At Pilot Company, clerks in the cash applications area of the accounts receivable office open mail containing checks from customers They prepare a remittance advice (RA) containing the customer number, invoice numbers, amount owed, amount paid, and check number Once prepared, the RAs are sent to a clerk who keys them into the computer The accounts receivable manager has been complaining that the RA entry process is slow and error prone Dancer Company enters shipping notices in batches Upon entry, the computer performs certain edits to eliminate those notices that have errors As a result, many actual shipments never get recorded Jamie the hacker gained access to the computer system of United Bank and entered the data to transfer funds to his bank account in the Cayman Islands At Lockhart Company , data entry clerks receive a variety of documents from many departments throughout the company In some cases, unauthorized inputs are keyed and entered into the computer List each system failure and match with control plan that would best prevent the system failure from occurring Also include one or two sentences as why you chose that control plan

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The following is a list of 12 control plans from this chapter, followed by a list of 10 examples of System Failures or problem situations

The following is a list of 12 control plans from this chapter, followed by a list of 10 examples of System Failures or problem situations 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

Batch sequence check
Confirm input acceptance
Programmed edit checks
Manual agreement of batch totals
Online prompting
Cumulative sequence check
Electronic approvals
Document design
Procedures for rejected inputs
Compare input data with master data
Turnaround documents
Digital signatures

System Failures

At Wynne Company, customer orders are received in the mail in the sales department, where clerks enter individual orders into the companys computer system and then file the completed orders in a filing cabinet. Customers should receive an acknowledgement for each of their orders. When the customer fails to receive an acknowledgement, the customer calls to inquire. Inevitably, the sales clerk will find the customers order filed with other customer orders that had been entered into the computer. The missing orders are always marked as ENTERED.
The tellers at Mason Bank have been having difficulty reconciling their cash drawers. All customer transactions such as deposits and withdrawals are entered online at each teller station. At the end of the shift, the computer prints a list of the transactions that have occurred during the shift. The tellers must then review the list to determine that their drawers contain checks, cash, and other documents to support each entry on the list.
Data entry clerks at Dora Company use networked PCs to enter batches of documents into the computer. Recently, a number of errors have been found in key numeric fields. The supervisor would like to implement a control to reduce the transcription errors being made by the clerks.
At Central Inc., clerks in the accounting offices of the companys three divisions prepare prenumbered general ledger voucher documents. Once prepared, the vouchers are given to each offices data entry clerk, who keys them into an online terminal. The computer records whatever general ledger adjustment was indicated by the voucher. The controller has found that several vouchers were never recorded, and some vouchers were recorded twice.
Purchase orders at Hickory Corp. are prepared online by purchasing clerks. Recently, the purchasing manager discovered that many purchase orders are being sent for quantities far greater (i.e., incorrect quantities) than would normally be requested.
At Quality Brokers, Inc., a clerk on the trading floor mistakenly entered the dollar amount of a trade into the box on the computer screen reserved for the number of shares to be sold and then transmitted the incorrect trade to the stock exchanges computer.
At Pilot Company, clerks in the cash applications area of the accounts receivable office open mail containing checks from customers. They prepare a remittance advice (RA) containing the customer number, invoice numbers, amount owed, amount paid, and check number. Once prepared, the RAs are sent to a clerk who keys them into the computer. The accounts receivable manager has been complaining that the RA entry process is slow and error-prone.
Dancer Company enters shipping notices in batches. Upon entry, the computer performs certain edits to eliminate those notices that have errors. As a result, many actual shipments never get recorded.
Jamie the hacker gained access to the computer system of United Bank and entered the data to transfer funds to his bank account in the Cayman Islands.
At Lockhart Company., data entry clerks receive a variety of documents from many departments throughout the company. In some cases, unauthorized inputs are keyed and entered into the computer.

List each system failure and match with control plan that would best prevent the system failure from occurring. Also include one or two sentences as why you chose that control plan.