Identify and describe three ways Mickie violated internal control principles during the AIS implementation
What will be an ideal response?
• Most of the control features of the "old" system were retained in the "new" system; however, the procedures for maintaining controls were substantially changed. The procedures and controls were not coordinated. More importantly, controls appropriate for the "new" systems were not properly developed and evaluated.
• Proper backup procedures were not implemented in many areas. This put the system and overall operations in a vulnerable position.
• Systems, programming, and operating documentation were behind schedule. Documentation should be complete before a systems conversion takes place.
• Separation of duties was violated by allowing
o both inventory control and purchasing personnel to issue purchase orders
o payroll clerks to prepare journal entries for payroll processing
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Gross national product (GNP) is the total market value of all final goods and services produced in a country for a given time period
Indicate whether the statement is true or false a. True b. False
On January 1, Year 1, Scores or Oars, Inc., borrowed $200,000 at 7%. The loan will be repaid with equal annual installment payments of $50,000 made on the last day of each year, which is the company's yearend. The first payment will include a debit to Notes Payable of $______.
a. 36000 b. 37000 c. 38000 d. 40000