You are performing an information system audit to evaluate internal controls in

Question

You are performing an information system audit to evaluate internal controls in Aardvark Wholesalers’ (AW) computer system. From an AW manual, you have obtained the following job descriptions for key personnel:

Director of information systems: Responsible for defining the mission of the information systems division and for planning, staffing, and managing the IS department.

Manager of systems development and programming: Reports to director of information systems. Responsible for managing the systems analysts and programmers who design, program, test, implement, and maintain the data processing systems. Also responsible for establishing and monitoring documentation standards.

Manager of operations: Reports to director of information systems. Responsible for management of computer center operations, enforcement of processing standards, and systems programming, including implementation of operating system upgrades.

Data entry supervisor: Reports to manager of operations. Responsible for supervision of data entry operations and monitoring data preparation standards.

Operations supervisor: Reports to manager of operations. Responsible for supervision of computer operations staff and monitoring processing standards.

Data control clerk: Reports to manager of operations. Responsible for logging and distributing computer input and output, monitoring source data control procedures, and custody of programs and data files. 11-10 a. Prepare an organizational chart for AW’s information systems division.

required

a. Prepare an organizational chart for AW's informational system divison .

b. Name two postive and two negative aspects (from an internal control standpoint ) of this organizational structure.

c. What additional information would you require before making a final judgment on the adequancy of AW's separation of functions in the information system division ?

Explanation / Answer

Organization chart for AW's information System Division as per the narration given is as follows:

Director                

                                   Manager (Operations)                      Manager (Development & Programming)

               Operations Supervisor    Data Entry Supervisor             Systems Analysts

Data Control Clerk                                                                                                        Programmers

b Two positive aspects    Director level position for Head of the Information Division and well defined job description of persons for each position.

Two Negative aspects Different levels below (Manager) all reporting to single person Manager. Clerks supposed to report to Supervisors. Programmers may report to System Analysts. Nothing mentioned about the targets set for time periods.

c Targets vis a vis actual performance of the individuals as well as for the entire division for the period under audit.

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