Control Plans
A. Program change controls
B. Independent validation of vendor invoices
C. Access control software
D. Batch control plans
E. Compare input data with master data (e. g., vendor master data)
F. Match invoice, PO, and receipt
The following are five system failures that have control implications.

System Failures
1. Vendor Invoices are received at Samuel Company via an EDI feed over the Internet. Some of these are fraudulent invoices from bogus vendors.
2. Vendor invoices are sent to clerks in the AP department at Seneca, Inc., where they are entered once each day to create a file of invoice data that is then processed by the accounts payable program each evening. Several errors have been found in the invoice data.
3. The accounts payable program at Laramie Company compares incoming invoices to open POs and receiving reports. The reject rate is very high, so Duane, the AP clerk, went into the program and changed the tolerance limits so that more invoices would pass the matching process and he would have fewer rejects to correct.
4. Cornick Company ordered 15 widgets from Stringson, Inc. Only 12 widgets were received; the other three were on back order at String-son. An invoice for 15 widgets was received at Webster, recorded, and eventually paid.
5. Beth, a clerk in accounts payable at Elise Company, has a cousin who owns a small office supplies company. Beth’s cousin periodically sends invoices to Beth for office supplies that Elise never ordered or received. Beth creates a one time vendor record and records the invoice. Once recorded as a payable, the invoice gets paid.

Match the five system failures with a control plan that would best prevent the system failure from occurring. Also, give a brief (one or two sentences) explanation of your choice. A letter should be used only once, with one letter left over.

  • CreatedDecember 15, 2014
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