SYSTEM FAILURES 3. Duplicate document numbers are entered in the system. The computer does not automatically identify erroneous of data on purchase orders before they are printed for signing and 10. 11. nailing. Purchase orders are sometimes prepared on the basis of puha requisitions from departments with no budget to pay for the ordered goods. Ordered goods are often of a different quality and pries than expected. The sales personnel can approve all customer orders. The finished goods warehouse delivers goods to the shipping department, accompanied by the picking ticket. goods against the picking ticket, the shipping employee signs the picking ticket and gives it to the warehouse employee. Then the shipping department prepares a three-part shipping notion, one copy of which serves as the packing slip a recent audit discovered that a dishonest warehouse employee had been forging picking ticket After checking the documents, thereby having goods shipped to an accomplice. Clerks in the purchasing departannt enter purchase order data from forms given to them by the buyers. They type in the vendor name and address, and the ites numbers, ites descriptions, and prices oftentimes resulting in typographical errore. Data fields must be manually entered and users can customize the input fields as needed. and error prone. The data entry process is, therefore, slow, Overpayments are made to the vendor because invoices are to quantities and prices other than what was ordered and received. Items shipped are not the same as the items ordered. Invoices are paid even though there is no Lovoice on the accounts payable master data. 12, Certain vendors have been favored in the selection process. 13 14. Invoices are recorded for items that were never ordered. Castoner payments on account are deposited once a week. All payments awaiting deposit are accumulated in a holding bla. All shipments are not billed in a timely manner. Part II: Matching 12 points each) Listed below are 15 system failures that indicate weaknesses in control. Select the best control plan to address the system deficiency described. Each letter is used only once. CONTROL PLANS D. E. 2000O A. Prenumbered documenta J. Approve purchase requisitions B. Independent shipping authorization Preformatted screens Programmed edit checks L. Perform credit checks M. F. Match invoices, purchase orders, and receiving reports N. G. Approve purchase orders H. Populate inputs with master data 0. 1. Independent authorization to make Compare vendors for prices, terms, quality, and product availability Immediately endorse incoming checks Independent validation of vendor invoices Compare input shipping notice to sales order master data Review shipped but not billed sales orders payment STEM FAILURES 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. Duplicate document numbers are entered in the system. The computer does not automatically identify erroneous or suspect data on purchase orders before they are printed for signing and mailing. Purchase orders are sometimes prepared on the basis of purchase requisitions from departments with no budget to pay for the ordered goods. Ordered goods are often of a different quality and price than expected. The sales personnel can approve all customer orders. The finished goods warehouse delivers goods to the shipping department, accompanied by the picking ticket. After checking the goods against the picking ticket, the shipping employee signs the picking ticket and gives it to the warehouse employee. Then the shipping department prepares a three-part shipping notice, one copy of which serves as the packing slip. A recent audit discovered that a dishonest warehouse employee had been forging picking ticket documents, thereby having goods shipped to an accomplice. Clerks in the purchasing department enter purchase order data from forms given to them by the buyers. They type in the vendor name and address, and the item numbers, item descriptions, and prices oftentimes resulting in typographical errors.. Data fields must be manually entered and users can customize the input fields as needed. The data entry process is, therefore, slow and error prone. Overpayments are made to the vendor because invoices are for quantities and prices other than what was ordered and received. Items shipped are not the same as the items ordered. Invoices are paid even though there is no invoice on the accounts payable master data. Certain vendors have been favored in the selection process. Invoices are recorded for items that were never ordered. Customer payments on account are deposited once a week. All payments awaiting deposit are accumulated in a holding bin. All shipments are not billed in a timely manner