You are the new internal audit director of SNC Enterprise Ltd., which provides courier services nationally and internationally. The enterprise completed its last financial year with a net income of $74 million. It operates 260 points of service in Canada and the United States, as well as 30 other service points in Europe and Africa. Ms. Carbrook, chief executive officer (CEO) of SNC, reported the following to you: Our enterprise has been in business for 12 years and our mission statement is “We deliver within 24 hours and we do not lose any package, whatever its size.” To achieve this goal, the enterprise converted 2 years ago from a manual system to a complete EDP system, including end-user computer hardware in some parts of our operations. Our EDP system and other related systems must be reliable and provide continuous controls 365 days a year and 24 hours a day. We must be able to trace all packages entrusted to us throughout the different continents in which we operate. Our main activities consist of the following: 

• Registration and recording of packages by destination and by type of delivery required (air, land, or sea); 

• Classification of packages by destination and in accordance with our own departure schedule or that of airlines’ departures; 

• Registration and recording of packages at their destination cities; 

• Distribution and recording of the time of delivery of packages to the recipients; and 

• Accounting and administration of our operation, including air and land fleet control. As you are no doubt aware, our transactions are voluminous and complex, and our processes need to be followed up at all times. I am concerned that a computer breakdown could affect our operations. Consequently, I request that you undertake a management audit of our EDP operations so as to ensure that our enterprise can meet its mission and continue to increase its market potential, as well as sufficiently protect our systems against failure. Required Using the following match words and phrases, identify the management audit and the control procedures to protect against EDP systems failure. - 

• The system should be well-documented and the documentation should be stored off-premises. 

• There should be adequate controls to prevent the system from being damaged or destroyed. 

• All system modifications should be approved by an authorized officer and properly tested before implementation. - 

• In the case of a prolonged machine future, alternative computer hardware facilities for each center should be made available through formal arrangements with other parties. 

• Alternative computer hardware facilities should be compatible with SNC hardware. 

• Compatibility of hardware equipment should be tested periodically. - For each point of service, a backup copy for each program used should be maintained. 

• A backup copy of programs should be stored outside the headquarters of EDP operations. - Prepare a list of all of SNC’s computer hardware and software. 

• Identify all potential failures that could occur at each point of service, be it nationally or internally. 

• Review EDP policies, procedures, and manuals of operations for each activity of the organization. 

• List and review EDP controls to ensure continuous operations.

Answer rating: 100% (QA)

Management Audit The management audit requested by the CEO of SNC Enterprise Ltd should focus on the EDP operations and related systems to ensure continuous operations and protect against failures The ... View the full answer