a batch of documents sent by the mail room to the accounts receivable department 252920


1. A batch of documents sent by the mail room to the accounts receivable department were lost in the intercompany mail and never recorded.

2. A flaw in the processing logic of a computer program resulted in cash received from customers being added to their accounts receivable balances rather than subtracted.

3. A mail room clerk fabricated a phony document for a friend to make it look like the friend had paid his account receivable balance. The phony document got recorded.

4. An accounts receivable clerk made a copy of the company’s accounts receivable master data and sold this customer information to a competing company.

5. Customer checks received in the mail room are batched and sent to the cashier several times a day so that they can be deposited as fast as possible.

6. In a manual bookkeeping system, an accounts receivable clerk failed to post an entire page of transactions from the cash receipts journal to the accounts receivable subsidiary ledger.

7. In a manual bookkeeping system, cash receipts recorded correctly in the cash receipts journal but some were inadvertently posted to the wrong customer accounts.

8. In keying remittance advices into his computer terminal, an accounts receivable clerk entered a receipt of $200 as $2,000.

9. The cost of the people and computers needed to process incoming checks is less than the benefit obtained from the incoming funds.

10. The company’s accounts receivable system was infiltrated by a hacker.

4. Below is a list of control goals followed by a list of short scenarios describing system failures (i.e., control goals not met) and/or instances of successful control plans (i.e., plans that helped to achieve control goals).

Required: On the blank line to the left of each numbered scenario, place the capital letter of the control goal that best matches the situation described. HINT: Some letters may be used more than once. Conversely, some letters may not apply at all. 10 pts

Control Goals

A. Ensure effectiveness of operations. E. Ensure input accuracy. B. Ensure efficient employment of resources. F. Ensure input completeness. C. Ensure security of resources. G. Ensure update accuracy. D. Ensure input validity. H. Ensure update completeness.


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