Taibert Corporation hired an independent computer programmer to develop a simplified payroll application for its newly purchased


Taibert Corporation hired an independent computer programmer to develop a simplified payroll application for its newly purchased computer. The programmer developed an online data entry system that minimized the level of knowledge required by the operator. It was based on keying answers to input cues that appeared on the terminal’s viewing screen. Examples of the cues follow:

a. Access routine:

1. Operator access number to payroll file?

2. Are there new employees?

b. New employees routine:

1. Employee name?

2. Employee number?

3. Social Security number?

4. Rate per hour?

5. Single or married?

6. Number of dependents?

7. Account distribution?

c. Current payroll routine:

1. Employee number?

2. Regular hours worked?

3. Overtime hours worked?

4. Total employees this payroll period?

The independent auditor is attempting to verify that certain input validation (edit) checks exist. The checks should ensure that errors resulting from omissions, invalid entries, or other inaccuracies are detected as soon as the answers to the input cues are entered.

Required 1 Identify the various types of input validation (edit) checks an auditor would expect to find in this system. Describe the assurances provided by each identified validation check. Do not discuss the review and evaluation of these controls.
2 Use Microsoft Access or other database management software package to create a set of tables to store the data listed and a form to enter that data. Design the form and tables to include the edit checks identified in part 1.
8.6The headquarters of Gleicken Corporation, a private company with \($3.5\) million in aimual sales, is located in California. For its 150 cUents, Gleicken provides an online legal software service that includes data storage and administrative activities for law offices. The company has grown rapidly since its inception three years ago, and its data processing department has mushroomed to accommodate this growth. Because Gleicken’s presi¬ dent and sales staff spend a great deal of time out of the office soliciting new clients, plan¬ ning the computing facilities has been left to the information technology professionals.
Gleicken recently moved its headquarters into a remodeled warehouse on the out skirts of the city. While remodeling the warehouse, the architects retained much of the original structure, including the wooden-shingled exterior and exposed wooden beams throughout the interior. The company’s hardware is situated in a large open area with high ceilings and skylights. This openness makes the computer operations area accessible to the rest of the staff and encourages a team approach to problem solving. Before Gleicken began to occupy its new facility, city inspectors declared the building safe (adequate fire extinguishers, sufficient exits, etc.).
Gleicken wanted to provide further protection for its large database of client informa¬ tion. Therefore, it instituted a tape backup procedure that automatically backs up the data¬ base every Sunday evening to avoid interrupting daily operations and procedures. All the tapes are labeled and carefully stored on shelves in the data processing department reserved for this purpose. The departmental operator’s manual has instmctions on how to use these tapes to restore the database should the need arise. In the event of an emergency, there is a home-phone list of the individuals in the data processing department. Gleicken has recently increased its liability insurance for data loss from \($500,000\) to \($1,000,000\).
This past Saturday, the Gleicken headquarters building was completely destroyed by fire. The company must now inform its chents that all their information has been destroyed.

a. Describe the control weaknesses present at Gleicken Corporation that made it possible for a disastrous data loss to occur.

b. List the components that should have been included in the disaster recovery plan at Gleicken Corporation in order to ensure computer recovery within 72 hours.

c. What factors, other than those included in the plan itself, should a company consider when formulating a disaster recovery plan?

d. What threats, other than the fire, should Gleicken have protected itself from?
8.7Visit the SANS Institute Web site (www.sans.org) and navigate to the page with sample policies. Download the SANS Institute’s sample template for e-mail retention (or whichever other policy template your instructor chooses). Obtain a copy of your university’s version of that policy. Compare the two and write a memo that analyzes any differences between the two documents. If your university does not have a comparable written policy, develop one.
8.8Download the mortgage prepayment Excel spreadsheet on the textbook Web site. Create the following controls:
• Field check to ensure that only numeric data is entered in the “Life of loan in years” field.
• Range check to ensure that annual interest rates must be between 4% and 9%, inclusive.
• Limit check to verify that “Amount of loan” is less than \($300,000\).

• Reasonableness test: amount of extra principal payment cannot be greater than 50% of the initial total monthly payment.
• Cross-footing balance checks to verify that total amount paid in principal plus extra principal over the life of the loan equals original loan amount.
• Conditional limit check to calculate the final “Extra principal” payment so that it does not reduce the outstanding balance below zero.
• Format the amounts in the first row and last row (totals) to display signs.
• Format all other rows to only show two digits after the decimal point, but no sign.

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Accounting Information Systems

ISBN: 12

11th Edition

Authors: Marshall RomneyPaul Steinbart

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