The Espy Company recently had an outside consulting firm perform an audit of its information systems department.

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The Espy Company recently had an outside consulting firm perform an audit of its information systems department. One of the consultants identified some business risks and their probability of occurrence. Estimates of the potential losses and estimated control costs are given in Figure.

a. Using the Figure information, develop a risk assessment for the Espy Company.

b. If you were the manager responsible for the Espy Company's information processing system, which controls would you implement andwhy?

The Espy Company recently had an outside consulting firm perform

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Core Concepts Of Accounting Information Systems

ISBN: 9780470507025

11th Edition

Authors: Nancy A. Bagranoff, Mark G. Simkin, Carolyn Strand Norman

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Question Posted: Mar 30, 2012 04:08 AM

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The Espy Company recently had an outside consulting firm perform an audit of its information systems department.

Question:

Losses Probability That Loss Will Occur Estimated Control Costs Estimate Estimate Equipment failure Software failure Vandalism $2,000 Power surge Flood 6 250,000 150,000 2

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a Hazard Probability that Expected Losses Estimated loss will occur Low High Control Costs equipment ...View the full answer

Core Concepts Of Accounting Information Systems

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