Assume that Pyrotechnics, Inc., has the following departments (plus others not to be considered in this problem):
A. Storeroom (including inventory control)
B. Purchasing
C. Accounts payable
D. Receiving
E. Treasurer
F. General ledger
The following documents/forms are to be considered in this problem:
1. Purchase requisition
2. Purchase order
3. Receiving report
The following information system control goals are to be considered in this problem:
IV. Purchase events are valid.
IC. All valid purchase events are input to the system.
IA. Purchase events are accurately input to the system.
UC. Recorded events are completely updated to the proper master data.
UA. Recorded events are accurately updated to the proper master data.
REQUIRED:
a. List the numbers 1 through 3 on your solution sheet. Each number represents a document from the second list. In column 1, opposite each of the three document numbers, insert a single capital letter (A through F) to indicate the department in the first list that would originate (initiate) that document.
b. In column 2, opposite each of the three document numbers, insert one or more capital letters (A through F) to indicate every department that you want to receive a copy of that document (i.e., the destination departments). Include the letter of the originating department if you want it to keep a copy of the document.
c. From your solution to requirement b, select only one department from column 2 for each document (obviously, the department could be different for each document). Circle the letter of that department in column 2. Then in column 3, describe how that department could use the document in question to serve a control purpose. In other words, describe a control procedure (control plan) related to the document in question. Limit each description to two or three sentences.
d. In column 4, insert a code from the third list above (IV, IC, IA, UC, or UA) to show the control goal that you believe is best served by the procedure described in column 2. Limit your answer to one procedure performed in one destination department for each document.
The format of your solution will appear as follows:
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Doc.
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Col. 1
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Col. 2
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Col. 3
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Col. 4
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#
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Originating Department
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Destination Department
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Description of control procedure
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Control goal
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