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Question : 133. The following a list of 10 control plans. Control Plans A. Enter data

133. The following is a list of 10 control plans.

Control Plans


Enter data close to the originating source


Preformatted screens


Confirm input acceptance


Check digit


Document design


Key verification


Written approvals


Digital signatures


Procedures for rejected inputs


Compare input data with master data

Listed below are ten system failures that have control implications. On the blank line to the left of each number, insert the capital letter from the list above of the best control plan to prevent the system failure from occurring. If you can't find a control that will prevent the failure, choose a detective or corrective control plan. A letter should be used only once.





Clerks at Ludlow Company enter cash receipts in batches using offline networked PCs. The customer number is often miskeyed. As a result, some cash receipts are posted to the wrong account.



At Washington Company shipping notices are entered in batches. Upon entry, the computer performs certain edits to eliminate those notices that have errors. But, many actual shipments never get recorded.



At Janet's Fine Fashions, several sales clerks prepare sales slips during the day. The sales slips are then keyed into the computer at the end of the day. Numerous errors occur because the layout of the sales slips is difficult for the data entry clerk to follow.



Winsted Company recently converted to an online order entry system. Clerks key in customer order data at one of several PCs. In the first week of operations, every sales order produced by the system was missing the data for the customer's "ship to" address.



The computer system at South County Bank received and processed a bogus transaction to transfer funds to a fraudster's bank account in the British West Indies.



Data entry clerks at the Windsor Inc. use offline networked PCs to prepare a variety of inputs for entry into the computer and the computer performs an agreement of batch totals. Recently, a number of errors have been found in key numeric fields. The supervisor would like to implement a control to reduce the transcription errors being made by the clerks.



At Kramer Company, field salespersons call on customers and take customer orders by recording them on sales order forms. The forms are mailed by each salesperson each night to Kramer's central data center for processing. The company has been besieged by customer complaints about how long it takes to receive their orders and about being shipped incorrect goods.



Comet, Inc. recently installed a new cash receipts system. A clerk keys in remittance data through a terminal located in the accounts receivable department. On the first day of operations, several remittances were not accepted for processing. The clerk had no idea that these remittances were not processed.



At Southfield Inc., data entry clerks receive a variety of inputs from many departments throughout the company. In some cases, unauthorized inputs are keyed and entered into the computer.



Clerks in the cash applications section of Charlton Company enter customer payments. The amount being paid is often input incorrectly; it does not agree with the amount due as indicated on the accounts receivable master data.

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