Business rules implement internal controls. Review Table 7.1 and classify each of those business rules listed as access controls as obligatory, prohibited, or allowed, as described in Chapter 2. Select two of those business rules and rephrase them, so an obligatory rule is now a prohibited rule, a prohibited rule is now an allowed rule, and so on?

TABLE 7.1: Using Business Rules to Implement Internal Controls

Process Partner Application Controls Steps Intention Authority/Action Access Controls Partner with proper authority authorizes Authorize Supervisor Partner System must provide Production must authorize authorizing authorization order number control, production to ensure finished goods are available production >$5,000. production cannot modify default values, and range and limit checks; must also inventory records. to meet expected create audit trail. demand. Issue Raw Issues from raw Partner issuing material must not Partner recording issue of material cannot modify bill of material. System must only allow partner to enter Material material according to bill of material the number of items be same partner recorded accurately. who authorized issued based on bill of material, subject to range and limit checks on quantities; date defaults to production. current date. System must provide control numbers, Perform Work Direct labor costs Partner Partner recording labor costs recorded promptly and accurately. performing direct labor must not cannot modify hours, costs range, and limit checks; date defaults to current be same partner authorizing production authorization. production. date. Inspect Work Inspection ensures that only products Partner Partner recording System must provide limit checks; date defaults to current and Discard inspecting inspection cannot Defects meeting quality work must not modify inventory records. standards are be a partner performing work. date. allowed. Complete Finished product Partner placing Partner recording update of System must default Production inventory must be updated promptly and accurately. products in date to current date; finished inventory inventory records cannot modify inventory update limit is based on must not be same partner authorizing authorization. production authorization. production.