1. What internal control procedure(s) would be most effective in preventing the
ID: 2591851 • Letter: 1
Question
1. What internal control procedure(s) would be most effective in preventing the following errors or fraudulent acts?
a. A programmer obtained the payroll master file and increased his salary.
Some time cards were lost during payroll preparation; consequently, when paychecks were distributed, several employees complained about not being paid.
c. A large portion of the payroll master file was destroyed when the disk pack containing the file was used as a scratch file for another application.
Explanation / Answer
A programmer obtained the payroll master file and increased his salary.
-Exeute a plan on access control to prevent programmer from having unsupervised access.
-Need authentication and access control to limit access to all master files.
-Cross check the total of all salaries from salary's back up files
A large portion of the payroll master file was destroyed when the disk pack containing the file was used as a scratch file for another application.
-Identify all active files through internal and external file labels.
-Maintain backup copies of all current files.
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