Following is a list of eight generic control goals from the chapter, followed by eight d...

Following is a list of eight generic control goals from the chapter, followed by eight descriptions of either process failures (i.e., control goals not met) or instances of successful control plans (i.e., plans that helped to achieve control goals).

List the numbers 1 through 8 on a solution sheet. Each number represents one of the described situations. Next to each number:

a. Place the capital letter of the control goal that best matches the situation described.

b. Provide a one- or two-sentence explanation of how the situation relates to the control goal you selected. If you select more than one control goal for a situation, provide an explanation for each that you select.

Hint: Some letters may be used more than once. Conversely, some letters may not apply at all.

Control Goals

A. Ensure effectiveness of operations

B. Ensure efficient employment of resources

C. Ensure security of resources

D. Ensure input validity

E. Ensure input completeness

F. Ensure input accuracy

G. Ensure update completeness

H. Ensure update accuracy

Situations

1. XYZ Co. prepares customer sales orders on a multipart form, one copy of which is sent to its billing department, where it is placed in a temporary file pending shipping notification. Each morning, a billing clerk reviews the file of open sales orders and investigates with the shipping department any missing shipping notices for orders entered 48 hours (or more) earlier.

2. Referring to situation 1, once a shipping notice is received in the billing department, the first step in preparing the invoice to the customer is to compare the unit prices shown on the sales order with a standard price list kept in the billing department.

3. At Otis Company, the accounts receivable master data is updated at the end of each day from payment data contained on the cash receipts event data store. At the completion of the update run, the difference between the total dollar value of accounts receivable before and after the update run is compared to the total dollars of payments being processed.

4. MiniScribe Corporation recorded as sales some shipments of disk drives between their warehouses. These disks drives had not been ordered by anyone and were still the property of MiniScribe.

5. An accounts payable clerk at Woburn Company enters vendor invoices into the computer. When the invoices for a particular day were entered, the computer noted that vendor invoice 12345 appeared twice. The computer rejected the second entry (i.e., the duplicate, the invoice with the same number).

6. In entering the invoices mentioned in situation 1, the data for the payment terms were missing from invoice 12349 and therefore were not keyed into the computer.

7. Instead of preparing deposit slips by hand, Lenox Company has them generated by the computer. The company does so to speed up the deposit of cash (speedy deposit being an objective at Lenox).

8. In a typical cash receipts process, one of the earliest processes is to endorse each customer’s check with the legend, for example, “for deposit only to ABC Company.”