Use Table to create a questionnaire checklist that can be used to evaluate controls for each of the basic activities in the production cycle (product design, planning and scheduling, production operations, and cost accounting).
a. For each control issue, write a Yes/No question such that a €œNo€ answer represents a control weakness.
b. For each Yes/No question, write a brief explanation of why a €œNo€ answer represents a controlweakness.

TABLE 14-1 Threats and Controls in the Production Cycle ACTIVITY General issues THREAT CONTROLS (FIRST NUMBER REFERS TO THE CORRESPONDING THREAT 1. Inaccurate or invalid 1.1 Data processing integrity controls 1.2 Restriction of access to master data 1.3 Review of all changes to master data 2.1 Access controls 2.2 Encryption 3.1 Backup and disaster recovery procedures 4.1 Accounting analysis of costs arising from product design choices 4.2 Analysis of warranty and repair costs 5.1 Production planning systems 5.2 Review and approval of production schedules and orders 5.3 Restriction of access to production orders and production schedules 6.1 Physical access controls 6.2 Documentation of all inventory movement 6.3 Segregation of duties-custody of assets from recording and throughout master data of sensitive information data 2. Unauthorized disclosure entire production cycle 3. Loss or destruction of Product design 4. Poor product design resulting in excess costs Planning and . Over and scheduling underproduction 6. Theft of inventory 7. Theft of fixed assets 8. Poor performance 9. Suboptimal investment in Production operations authorization of removal fixed assets 6.4 Restriction of access to inventory master data 6.5 Periodic physical counts of inventory and reconciliation of those 10. Loss of inventory or fixed assets due to fire or other disasters counts to recorded quantities 7.1 Physical inventory of all fixed assets 7.2 Restriction of physical access to fixed assets 7.3 Maintaining detailed records of fixed assets, including disposal 8.1 Training 8.2 Performance reports 9.1 Proper approval of fixed-asset acquisitions, including use of 11. Disruption of operations requests for proposals to solicit multiple competitive bids 10.1 Physical safeguards (e.g., fire sprinklers) 10.2 Insurance 11.1 Backup and disaster recovery plans 12.1 Source data automation 12.2 Data processing integrity controls 13.1 Time-driven activity-based costing 14.1 Innovative performance metrics (e.g., throughput) Cost accounting 12. In accurate cost data 13. Inappropriate allocation of overhead costs 14. Misleading reports