Auditing & Assurance Services 6th Edition by Timothy Louwers

تمرين 560

Computer Internal Control Questionnaire Evaluation. Assume that, when conducting procedures to obtain an understanding of Denton Seed Company's internal controls, you checked "No" to the following internal control questionnaire items:
• Does access to online files require specific passwords to be entered to identify and validate the terminal user?
• Does the user establish control totals prior to submitting data for processing? (Order entry application subsystem.)
• Are input control totals reconciled to output control totals? (Order entry application subsystem.)
Required:
Describe the errors and frauds that could occur because of the weaknesses indicated by the lack of IT controls.