At the beginning of 2021, Green Limited installed SAP Concur software for recording of all purchases...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
At the beginning of 2021, Green Limited installed SAP Concur software for recording of all purchases and payments in order to manage and monitor all spending and to avoid all manual data entries as that has caused problems in paying suppliers in the past. The staff are still getting to know the new SAP system and are unsure of what Application Controls to implement. The relevant data fields in the SAP Concur software are as follows: Suppliers Table: Field 10 1 12 13 14 11 Data Supplier Number Supplier Name Supplier Address Supplier Phone Number Outstanding Balance Purchases Table: Field 20 21 22 23 24 25 26 Payments Table: Field 30 31 32 33 34 Data Purchase Order Number Supplier Number Item Description Quantity Total Amount Due Date Cost Data EFT Number Supplier Number Purchase Order Number Amount Date Access to the SAP Concur software is controlled by usernames and passwords. Neal Perry (the managing director and owner) and Tina, the accounts payable clerk, are the only ones who will have access to the system for now. Data, from purchase invoices and payments will be entered into the system regularly by Tina. When a supplier statement is received, Tina will reconcile this with the data recorded in the system. Neal will then review these reconciliations and then authorise any changes to the recorded data. REQUIRED: As the auditor of Green Limited, you are currently testing the IT Controls and have noted a number of errors that are still occurring. For the following two errors, recommend and describe one IT application control (for each error) to prevent the error. Your answer should make reference to relevant data fields from the SAP Concur Supplier Table: • Error 1: Invoice numbers are entered in multiple formats such as; Inv23451 or 23451Inv or 234541. • Error 2: A number of inactive supplier accounts older than 18months were accidently paid last month. Please use bullet points to answer the question: • automated IT application input control to prevent Error 1 with short explanation how it should work: • automated IT application input control to prevent Error 2 with short explanation how it should work:: At the beginning of 2021, Green Limited installed SAP Concur software for recording of all purchases and payments in order to manage and monitor all spending and to avoid all manual data entries as that has caused problems in paying suppliers in the past. The staff are still getting to know the new SAP system and are unsure of what Application Controls to implement. The relevant data fields in the SAP Concur software are as follows: Suppliers Table: Field 10 1 12 13 14 11 Data Supplier Number Supplier Name Supplier Address Supplier Phone Number Outstanding Balance Purchases Table: Field 20 21 22 23 24 25 26 Payments Table: Field 30 31 32 33 34 Data Purchase Order Number Supplier Number Item Description Quantity Total Amount Due Date Cost Data EFT Number Supplier Number Purchase Order Number Amount Date Access to the SAP Concur software is controlled by usernames and passwords. Neal Perry (the managing director and owner) and Tina, the accounts payable clerk, are the only ones who will have access to the system for now. Data, from purchase invoices and payments will be entered into the system regularly by Tina. When a supplier statement is received, Tina will reconcile this with the data recorded in the system. Neal will then review these reconciliations and then authorise any changes to the recorded data. REQUIRED: As the auditor of Green Limited, you are currently testing the IT Controls and have noted a number of errors that are still occurring. For the following two errors, recommend and describe one IT application control (for each error) to prevent the error. Your answer should make reference to relevant data fields from the SAP Concur Supplier Table: • Error 1: Invoice numbers are entered in multiple formats such as; Inv23451 or 23451Inv or 234541. • Error 2: A number of inactive supplier accounts older than 18months were accidently paid last month. Please use bullet points to answer the question: • automated IT application input control to prevent Error 1 with short explanation how it should work: • automated IT application input control to prevent Error 2 with short explanation how it should work::
Expert Answer:
Answer rating: 100% (QA)
Automated IT Application Input Controls Error 1 Invoice Numbers in Multiple Formats Control Regular ... View the full answer
Related Book For
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
Students also viewed these accounting questions
-
In order to manage for overall project success, control must be exercised at the detailed work level for each aspect of project performance or no significant change will occur. Does this mean that...
-
At the beginning of the year, Wiggins Co. purchased ten new computers in order to transform an existing caf into an Internet caf. The following expenditures were related to the purchase of the...
-
At the beginning of the chapter I gave three examples of different meanings for the number 18 in terms of the underlying scale of measurement. Give an example where the number 18 would be on an...
-
Orca Industries is considering the purchase of Shark Manufacturing. Shark is currently a supplier for Orca and the acquisition would allow Orca to better control its material supply. The current cash...
-
Paul Searle, a former basketball player at St. Josephs College, brought suit against the college, the basketball coach, and the trainer for breach of contract and negligence. Searle alleged that he...
-
A particular bond pays $4580 at the end of 1 year, $3270 at the end of 2 years and $5640 at the end of 3 years. The yield to maturity for the bond is 0.11. What is the present value of this bond?...
-
For the balance sheet for Bethesda Imaging, shown in Table 2.6, identify three financial ratios that might be of interest to an investor in the company. What do the 5 -year trends for the ratios...
-
M. Gonzales has the following transactions during August. Indicate (a) the effect on the accounting equation and (b) the debit-credit analysis as shown in the chapter. Aug. 1 Opens an office as a...
-
why do you think the Virginia Company continued to send colonists to Jamestown after the rise in mortality rate, the continued conflict with local tribes, and disease?
-
Use information on the endpapers of this book to calculate the average density of the Earth. Where does the value fit among those listed in Tables 1.5 and 14.1? Look up the density of a typical...
-
Tired of hiring themselves out and abiding by corporate rules and various personality issues with management of fitness facilities, two fully certified personal trainers opened a fitness facility....
-
Safa's gross pay last month was $ 3 3 0 0 . 0 0 . Her base salary is $ 3 0 0 0 per month, plus a commission of 2 % on sales over $ 6 0 , 0 0 0 . What were Safa's sales for last month?
-
evaluate and report on the most recent (FY2020) annual report of an Australian company listed on ASX, Adairs Limited (ADH), as if you were investment analysts making a recommendation on whether your...
-
Inputs Initial Investment Loan Interest rate Period of loan Economic life Salvage value Average Price of product Production Volume Year 1 revenue Growth rate of revenue Fixed Cost (year 1) Variable...
-
With the given financial statements displayed in Excel : What is the five-year financial forecast for the company (2011-2016)? * I DO NOT need an explanation of methods, accounting info, etc. * I...
-
What is an operating system kernel, and what runtime services does an executable binary program expect from a typical time-sharing kernel? How may transfer of control (program flow) between the...
-
Find an article from a sports business journal and identify the major financial issues including some analysis of the issue. Offer an opinion on its validity by using facts and concepts identified in...
-
A 6-lb shell moving with a velocity ?? v0k explodes at point D into three fragments which hit the vertical wall at the points indicated. Fragments A, B, and C hit the wall 0.010 s, 0.018 s, and 0.012...
-
Refer to Exhibit 144. Is the return on this investment proposal exactly 14%, more than 14%, or less than 14%? Explain.
-
Reutter Company manufactures a single product and uses process costing. The companys product goes through two processing departments, Etching and Wiring. The following activity was recorded in the...
-
In what way can the use of ROI as a performance measure for investment centers lead to bad decisions? How does the residual income approach overcome this problem?
-
True or False: Engineers seldom have an opportunity to influence the recovery period for expenditures.
-
True or False: Straight-line depreciation is the most popular depreciation method used in financial reporting.
-
A lumber company purchases and installs a wood chipper for \(\$ 200,000\). The chipper is classified as MACRS 7-year property. Its useful life is 10 years. The estimated salvage value at the end of...
Study smarter with the SolutionInn App