Question: On October 2 2002 a clerk at Bear Stearns had
On October 2, 2002, a clerk at Bear Stearns had erroneously entered an order to sell nearly $4 billion worth of securities. The trader had sent an order to sell $4 million worth. Only $622 million of the order was executed, and the remainder of the order was canceled prior to execution. Reports stated that it was a human error, not a computer error and that it was the fault of the clerk, not the trader. What is your opinion of these reports? What controls could have prevented this error?
Relevant Questions“Technology Summary 9.1 seems to indicate that the business process and application control plans in this chapter cannot be relied on.” Do you agree? Discuss fully.The narrative and systems flowchart for the Bridgeport LLC cash receipts system are included in Exhibit and Figure, respectively. Using Exhibit and Figure do the following: a. Prepare a control matrix, including explanations ...“A control plan that helps to attain operational effectiveness by ‘providing assurance of creditworthiness of customers’ also helps to achieve the information process control goal of sales order input validity.” Do ...Using the following table as a guide, describe for each function from Figure:a. A risk (an event or action that will cause the organization to fail to meet its goals/ objectives) b. A control/process or use of technology ...The narrative of Davidson Company’s sales order entry process and systems flowchart of that process are shown in Exhibit 10.2 and Figure, respectively. a. Prepare a control matrix, including explanations of how each ...
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