AUE2602/201/1/2021

QUESTION 2 25 MARKS
2.1 Access Controls 10 Marks
Reference: Adams, Diale and Richard (2019: 8/12-8/17)
Access controls:
− The terminals should be situated in such a manner that only staff members have access
thereto. (1)
− Each user should be assigned a unique user ID and password that should be contained in
the access table of the operating system. (1)
− The access table/ user matrixes should define each user’s access privileges according to
the least privilege principle – i.e. only grant access to a user for those applications that he
requires in order to perform his duties. (1)
− Only Mr Dliale should have access to the access table in order to change a user’s privileges.
(1)
− Upon logging in the user should be authenticated by means of a password that is: (1)
• Unique (1)
• Confidential (1)
• Changed regularly (1)
− The system should also provide for:
• Automatic shutdown in the event of illegal access attempts (e.g. no more than 3 incorrect
password attempts) (1)
• Time-out facilities (shutdown or password controlled screen savers) in the event of non-
activity for a period of 3 minutes. (1)
− Automatic logging of all access and access violations. (1)
− These logs should be reviewed on a daily basis by Mr Dliale. (1)
− Only Mr Dliale should have access privileges to these logs (1)
− Encryption of confidential information, for example, passwords. (1)

Max of 10 marks for section from 14 available marks

2.2 Disadvantages of packaged software 2 Marks
Reference: Adams, Diale and Richard (2019: 8/30)
The disadvantages of packaged software
• the package may not meet the company’s requirements exactly(1)
• excellent software developed overseas may, for example, not satisfy South African tax or
financial reporting requirements (many of these packages do offer SA versions) (1)
• changes can’t be made by a purchaser of the software. (1)

Max of 2 marks for section from 3 available marks

Comment

There are not too many disadvantages. This is mainly because the software development industry
is highly competitive, which has resulted in an explosion of packages on the market covering
virtually every industry. The packages are of high quality, fully debugged and very reliable.

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2.3. Advantage of packaged software 3 Marks

Reference: Adams, Diale and Richard (2019: 8/30)

• It has a lower cost. (1)
• The entire software development project is completed far quicker because development and
testing have been done on the software by the developers of the package. (1)
• The package can be demonstrated up front, so IT personnel and users can see what the
package “can do”. Sample reports can be examined and the computer capabilities required
by the software can be determined and tested. (1)
• Technical support (by phone or over the Internet) is usually available from individuals who
are very skilled and knowledgeable about the specific package, and comprehensive manuals
are supplied. (1)
• Software companies usually upgrade the packages on an ongoing basis. (1)

Max of 3 marks for section from 5 available marks

2.5 Programmed application controls that you would expect to find to ensure that all
valid restaurant sales are captured accurately and completely 10 Marks

Reference: Adams, Diale and Richard (2019: 8/48-8/51)

Accuracy

• Minimum keying in of information (1)

• Drop-down” lists should be used, which simply require the user to “select and click” the
option they require from the options provided on the drop-down list (1)
• Automatic pricing of sales according to prices on the menu masterfile. (1)
• Limit check (any valid example) eg. that cash received is not less than the amount due.
(1)
• Reasonableness testing (any valid examples) eg. On quantities ordered. (1)
• Automatic calculation of price x quantity and calculation of change by computer.
(1)
• Format checks
• Alpha-numeric checks prevent/detect numeric fields that have been entered as
alphabetic, and vice versa, for example when entering an employee’s identity
number, all digits must be numeric. (1)

• Size checks detect when the field does not conform to preset size limits. (1)

• Mandatory field/missing data checks detect blanks where none should exist; if a
quantity is not entered in a quantity field on an internal sales order, data capture
cannot continue. (1)

• Valid character and sign check. The letters, digits or signs entered in a field are
checked against valid characters or signs for that field, for example a minus sign (–)
could not be entered in a quantity order field. (1)

• Dependency tests eg. Sales only accepted if waitress code is entered (any other valid
examples). (1)
• Field size tests eg. On table number (or other valid examples). (1)

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 AUE2602/201/1/2021

Completeness
• Missing data check on key entry fields. (1)
• Use of appropriate screen design and screen prompts. (1)
• Sequential pre-numbering of invoices. (1)
• Control totals (any valid example) (1)
• Exception reports (any valid example) eg. On missing entry fields. (1)

Max of 10 marks for section from 17 available marks

OTHER ASSESSMENT METHODS

SOLUTION TO THE EXAMINATION PAPER INCLUDED IN TUTORIAL LETTER 101/2021
WHICH SERVES AS A SELF-EVALUATION ASSESSMENT EXERCISE

QUESTION 1 50 MARKS

1.1 The requirements of sound corporate governance 19 Marks

Reference: King IV Report

a) Board of Directors – composition and appointments

1. The governing body should comprise a balance of power with a majority of non-
executive directors. Of the seven directors, three are executive directors. Therefore,
they comply with principle 7 point 8. (1½)
2. The governing body should comprise a balance of power of which the majority of the
non-executive directors should be independent. Of the four non - executive directors,
four are independent directors. Therefore, they comply with principle 7 point 8. (1½)
3. Virat Amla, the chairperson (1/2) of the board, is not an independent (1/2) non-
executive director (1/2) as required by King IV (principle 7 point 31) If the student only
mentions independent = ½ mark or non-executive = mark 1/2.
4. Virat Amla is both the CEO and the chairperson of the governing body. In terms of King
IV (principle 7 point 31) the CEO should not also be the chairperson. (1½)
5. As the chairperson is not independent, King IV (principle 7 point 32) state that a lead
independent director (LID) should have been appointed. (1½)
6. The company should disclose if a chairperson is appointed who is not independent, or
if he/she is an executive director. No integrated report has been prepared. (principle 7
point 38) (1½)
7. At least the CEO and one other executive director should be appointed to the board
according to King IV (principle 7 point 9). SaveUPlenty complies as the CEO and two
other executive directors serve on the governing body. (1½)
OR
At least the CEO and the Financial Director should be appointed to the governing
body according to King IV (principle 2.18 point 73). SaveUPlenty does not currently have
a financial director acting on the board (1½)
(Max 7½ marks for this section)

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