Assignment: Controls for IT and Reporting & Evaluation ? Imagine you are a controller for a company. ? Identify the internal control reporting options. ? Create criteria against which the options can be evaluated. ? Include internal controls for IT.

IT . Review procedures to check that all rejected controls are resubmitted and carried out

Sales made are accurately recorded

Control weakness : Sales that are recorded are not accurate sometimes due to fraud or error

Proposed controls : Sales invoices and matching documents (Goods dispatched notes , shipping documents etc ) are required for all entries Programs are designed to automatically check fields on input for plausibility . This will include checking reference numbers (numerical or otherwise ) of sales invoice and matching documents as in digit verification . Also there are no unexpected characters in the

reference The sales values entered are reasonable that is they are in correspondence what they should be after taking account of every thing for instance , tax . The customer for whom the invoice is drawn exists and the invoice does not stretch the credit given to the customer over what is authorized . In other words all transaction processed are with in the range of credit allowed to customers . All required information which should be entered with the information is present i .e . no information is completely processed with gaps (Shim , Siegel and Dauber , 2008

Proposed test method : Vouch recorded sales to supporting documents . Test a sample to ensure that the amount of sales recorded are verified by source documents and that after incorporating all the costs (tax etc the resulting figure is correctly and appropriately entered in the accounts

Controls over processing

Control weakness : Transaction do not processed properly before the program ends

Proposed controls : One for one checking should take place to ensure that the transactions are processed properly . Manual as well as automatic checks in place to ensure complete processing of transactions Programmed matching of input to input control should be carried out so that the objective of completion of processing could be reached . Manual together with programmed agreement...