Chapter $13$ Accounting Information Systems and Internal Controls

$($AIS and Internal Controls$)$

$1.$ While performing a review of business controls in accounts payable, you have discovered a control

issue. Segregation of accounting duties is not being upheld as the accounts payable clerks also have the

ability to create and delete vendors in the computer system. Explain the control concern$/$business risk

so the IT group, responsible to correct the issue, will understand the business need.

$2.$ Using the information from the Chapter $13$ Appendix explain how the different environments $$

development, test, and production are used for systems development.

$3.$ Why does a firm need a code of ethics? Is it important to corporate governance? How does a

delegation of authority guideline and clear organization chart support corporate ethics?

$4.$ Three main functions of internal control are prevention, detection and correction of errors and fraud.

Provide an example of a preventive control that may be used to ensure journal entries are correct.

Provide an example of a detective control that may be used to ensure correct balances in general ledger

accounts.