HOMEWORK CHAPTER 3: IC FRAMEWORK

Name: Đỗ Minh Hương

ID: 31221022662
Course: Internal Control

11-23. Requirement (a)

1. Verifications
2. Controls over standing data
3. Verifications
4. Segregation of duties
5. Verifications
6. Authorization and approvals
7. Controls over standing data
8. Verifications
9. Reconciliations

11-24. Requirement (a), (c)

 1. a. Authorizations and approvals
c. Set the threshold of order value lower that prevents inappropriate personal
purchases. Also, consider the threshold is appropriate with business policies.
2. a. Verifications
c. Provide the warehouse department a copy of purchase order and double-
check with purchase ledger periodically.
3. a. Controls over standing data
b. Combine automated and manual procedures to ensure there are no input
mistakes made during the process.
4. a. Supervisory controls + Authorizations and approvals
c. Provide additional supporting documents such as purchase invoice, purchase
order,... Besides, implement
5. a. Controls over standing data + Segregation of duties
c. Establish a policy and require the assigned staff have to record/ bookkeeping
sales at the date they occur and ensure the accuracy of data
6. a. Segregation of duties
 c. Input sales to the accounting system are done by the qualified and
independent person.
7. a. Controls over standing data + supervisor control
c. Enhance training for new employees and apply a combination of manual and
automated to ensure data is entered accurately
11-25

- Robert Smith is responsible for preparing and recording documents: 2, 3, 4, 5,

7, 9, 11, 14, 16, 17
- James Cooper’s duties is asset custody: 1, 6, 8, 10, 12, 13
- Mohini Singh will perform independent verification: 15, 18
11-26

1.
- Key entry verification
- Check digit
- Reconciliation to customer number on purchase order and bill of lading.
2.
- Input security controls over cash receipts records
- Scheduling of computer processing
- Controls over access to equipment
- Controls over access to live application programs
3.
- Preprocessing review
- Programmed controls
4.
- Processing authorization
- Preprocessing review
- Programmed controls (comparison to customer file)
5.
- Preprocessing review
- Programmed controls (comparison to the online authorized price list)
6.
- Correct file controls
 - Cut off procedures
- Programmed controls (check for sequence of dates)
7.
- Conversion verification (key verification)
- Programmed controls (check field for completeness)
8.
- Control totals reconciled to manual totals of all batches
- Computer accounts for numerical sequence of batches submitted.