You are the systems analyst of Crabtree Computers Limited. Several recent incidents of employee errors and omissions
Question:
You are the systems analyst of Crabtree Computers Limited. Several recent incidents of employee errors and omissions have made you realized that there are certain flaws in the internal controls and auditing systems of the company. You decided to take a number of steps to mitigate the existing risks and to improve the audit and control processes. You are concerned with the segregation of duties.
Required :
1. What functions must be separated? If ideal segregation of duties is not economically feasible, what are some compensating controls that would help reduce the risk of fraud or error?
2. Using a flowchart diagram, explain the risk assessment process that you will implement at Crabtree Computers Limited to endeavour to improve the current system.
Auditing a risk based approach to conducting a quality audit
ISBN: 978-1133939153
9th edition
Authors: Karla Johnstone, Audrey Gramling, Larry Rittenberg