Assignment: Accounting Information System
1. IT Controls: Small Construction Company uses QuickBooks Online and has one employee, Gloria, in the accounting department. Gloria has unique userid and password to access QuickBooks Online. The company is growing and recently hired 2 new accountants. To avoid paying for more QuickBooks users, Gloria gave her userid and password to the new accountants.
Required: Should Gloria share her userid and password? Why or Why not? If you answered no, recommend changes to correct the problem?
2. IT Controls: Western Community Hospital operates 3 hospitals in San Diego. Western implemented an electronic medical record to collect and store patient data. Physicians and nurses enter and retrieve patient data. The system integrates patient data with the patient financial data to invoice patients and insurance companies. Dr. KrimiNel is unhappy with Western's decision to close the hospital where she works. Dr. Nel downloaded the entire data file containing patient financial data on a USB flash drive and posted the data on a hacker website.
Required: List three Information Technology controls that Western Community Hospital should have implemented to prevent or detect the theft of patient financial data.
1. Computers International is implementing an online, automated wire transfer capability at World Bank to electronically transfer funds in local currencies to pay supplier Investors. Which of the control activities listed below does not help prevent fraudulent wire transfers.
A) The drive on the computer used for wire transfer is backed up at the end of each day.
B) World Bank recognize transactions from only one Global Toy computer using the computer's media access control number.
C) Limit transactions to a single employee and establish unique username and password with Word Bank.
D) World Bank required the Treasurer to approve all wire transfers over $5000.00.
2. Journal entries are necessary to record non-recurring events, correct errors and records adjustments. Which of the following procedures is the least effective control activity to protect against fraudulent journal entries.
A) The most senior accounting person, which is usually the controller, prepares and records all journal entries.
B) An accounting supervisor independent of the person preparing the journal entry approves the journal voucher.
C) All subsidiary ledgers are reconciled to the general ledger control accounts.
D) Internal auditors review adjusting journal entries each quarter.
3. Which of the following transactions is represented by the diagram below?
A) Vendors send a bill for each inventory item purchased which is payable on receipt.
B) A single purchase of inventory is paid for with multiple payments.
C) Inventory vendors send a monthly bill for merchandise delivered. The seller does not accept or allow installment payments.
D) Some inventory purchase are paid for with multiple payments and some payments may apply to multiple purchases.