Assignment Problem: All four problems just need to be match the letters with numbers
Problem SP11-5
Control Plans
A. Review shipped not billed sales orders
B. Turnaround documents
C. Deposit slip file
D. Procedures for rejected inputs
E. Computer agreement of batch totals
F. Document design
Control Goals or System Deficiencies
1. The shipping clerk could not read the quantity picked that had been written on the picking ticket by the warehouse clerks.
2. In a periodic/batch environment, helps to ensure the information system control goal of input completeness of the shipping notices.
3. Helps to ensure that all shipments are billed in a timely manner.
4. Meets the operations system control goal of efficiency of resource use by reducing the number of data elements to be entered from source documents.
5. Provides an "audit trail" of deposits.
Problem SP 11-6 The following is a list of six control plans from this chapter or from
Chapter 9 and Chapter 10. These are followed by a list of five state-ments describing either the achievement of a control goal (i.e., a system success) or a system deficiency (i.e., a system failure). Match the five control goals or systems deficiencies with a control plan that would beet achieve the desired goal or prevent the system deficiency. A letter may be used only once, with one letter left over.
Control Plans
A. Prenumbered checks
B. Confirm customer accounts regularly
C. Confirm input acceptance
D. Programmed edits of shipping notification inputs
E. Independent billing authorization
F. Cumulative sequence check
Control Goals or System Dade/wits
1. In an online environment, helps to ensure input completeness.
2. Helps to identify duplicate, missing, and out-of-range shipping notifications by comparing input numbers to a previously stored number range.
3. Helps to ensure the validity of shipping notifications.
4. Provides a detective control to help ensure the accuracy of the billing process.
5. Provides a preventive control to help ensure the accuracy of the billing process.
Problem SP12-4
A. Compare PO data to input receipt data
B. Written code of conduct
C. Compare vendors for price, terms, quality, and availability
D. Monitor open POs
E. Independent authorization to record receipt
F. Count goods and compare to vendor packing slip
G. Independent vendor master data maintenance
H. Personnel management controls (supervision)
I. Perimeter and building controls
J. Segregate warehouse and receiving functions
K. Digital signature
L. Logical and physical access controls
System Failures
1. Warehouse managers at Broward, Inc. have been discovering inven¬tory shortages. When they investigate the paperwork transferring the goods from receiving to the warehouse, the evidence indicates that the goods had arrived in the warehouse.
2. The accounts payable clerks at Grande Company have difficulty rec-onciling the quantities recorded as received and the quantities on vendor invoices. Usually, the vendors claim that they are billing for the amounts that they had shipped.
3. Carol, a buyer at Pilot Company, ordered unneeded inventory items from a vendor of which she is an owner.
4. Donald worked in the receiving department at Altos, Inc. One day, goods were received from Adams Company for which no open PO could be found. To get the items received, Donald figured out a way to create a PO. Later, it was discovered that the goods had never been ordered.
5. Katie, a buyer at Form, Inc. was in a hurry to buy a part needed to get the Form factory back in operation. She found Edgar Company, a local vendor that could supply the part that day but for a premium price. Because it was an emergency, she created a vendor record for Edgar and issued the PO. Subsequently, other buyers began to use Edgar for other purchases.
6. Steve, who works in the warehouse at Lakeshore, Inc. has gotten into some financial difficulties and has figured out a way to make some extra cash by working with the folks at Herman Company. He creates orders for purchases from Herman and records a receipt, but no goods are ever received. Subsequently Herman sends a bill to Lakeshore, which gets paid, and Steve gets paid 20 percent of the take.
7. At Walnut, Inc. there are often discrepancies between what is ordered and what is recorded as received. Discrepancies include wrong items and wrong quantities.
8. Sand Lake Company is often running out of inventory of certain key items. When research is conducted to find out the reason for the stock-outs, they find that a PO had been issued, but the goods had not yet been received. Typically, these delayed deliveries are consis-tently from the same vendors whose poor performance has been noted in the past.
9. Marina Company uses the Internet to send POs to its vendors. The vendors for Marina have been receiving POs that seem to be from Marina but are actually bogus.
10. The internal audits at Deltona Company have found several discre-pancies in the inventory data; the inventory is on the shelf, but the records do not reflect those balances. When they investigate further, they find that the goods were received but never recorded.
Problem SP 16-2
Many business events are recorded in the GL from feeder processes. The first list below identifies eight business events. The second list spe¬cifies five feeder processes. Match the events with the processes. Each process may have one or more event specified. Some events may not be used.
Business Events
A. Sales order is received from a customer.
B. Inventory is sold to a customer.
C. Inventory is received from a vendor.
D. Inventory is returned from a customer.
E. Cash is disbursed for inventory purchased.
F. Bad debts are written off.
G. Employer taxes are accrued.
H. Cash is received from a sale.
I. Employer taxes are deposited.
Feeder Processes
1. B/AR/CR process
2. Purchasing process
3. OE/S process
4. AP/CD process
5. Payroll process