Question

Access Privileges Mary Johnson, the Ajax Construction Co. cash disbursement clerk, has the database access privileges presented in the table designated Problem 4-4. Required: Discuss the appropriateness of the access privileges assigned. What, if any, internal control problems may result. Problem 4-4 Cash Database Purchase Receiving Vendor Disburse- Table Order Report Invoice ments Authority Level Read Y Insert Y Modify Y Delete N Y Y Y Y Y Y ZZ<< 2 Y Y

Answer 1

The objective of the internal control for cash disbursements are to ensure that cash is disbursed to only persons authorized by management, should be for business purposes and are properly recorded.

For this there should be proper segregation of duties, the person, for cash disbursements this might mean that differnet people authorize payments, sign checks, record transaction anr reconcile at the same time.

In the given case clerk has been given access rights which makes internal control more vulnerable to risk.

Here clerk. Can delete vendor imvoices and make payments for his personal purpose.

Cleek can modify cash disbursements and may record more or less cash payments which are for his own benefit.

Clerk can make payment and delete the same which again is a risky access being given to the clerk.

So, access should be limited and must be divided into different persons so that they can keep an eye on each other work and internal control can effectively be work.