Case 7 Internal Controls Identifying Compromised Control Objectives & Making Preventive and Detective Control Recommendations for System Failures The basis for Case 7 is Problem 2 in Chapter 14 (The Revenue Cycle: Sales to Cash Collections) of your Revel textbook. For each of the system failures described in a -j, identify an objective compromised (Validity, Completeness, Accuracy, OR Safeguarding) and recommend one internal control procedure that could prevent (or detect) the specified failure. In each situation, there may be more than one objective compromised and more than one appropriate preventive (or detective) control for the specified failure, but you should identify only one objective compromised and recommend only one preventive (or detective) control. As an example, item p. in problem 2 describes the following situation, "A sales clerk sells a $7,000 wide-screen TV to a friend and alters the price to $700." In this situation, the internal control system failed because the clerk was not prevented from entering an unauthorized or inaccurate price. The objective compromised in this situation is accuracy. To prevent this system failure, data entry edit controls (e.g., validation rules, automatic population, etc.) and authorized price lists for sales staff should be implemented on all sales input terminals. Table 14-1 Threats and Controls in the Revenue Cycle in Chapter 14 of your Revel textbook is a useful resource for this assignment. Notice that the situation described (use of unauthorized/inaccurate prices) best aligns with the threat Incomplete/inaccurate orders. Table 14-1 maps this threat to appropriate controls. The recommended controls to address Incomplete/inaccurate orders are data entry edit controls and restriction of access to master data. Both controls are preventive in nature.