She gained an unrestricted access to the said the company through the ERP manuals sh found in the dumpsters that were dated 2 months prior. GROUP #3 BATAC-EDILLON.GAÑA-SIBUG-TUAÑO .STEPHANIE BASKILL (Internal Control and Fraud) an unemployed accounting clerk who lives one block from Cleaver Manufacturing Company.

even if the documents would be out of the company’s premises. Store the documents in a safe place in the company’s premises while still relevant -With this. they should be given proper protection even when discarding them from the company. In this way.Control Structure Weaknesses 1. Specific Control Techniques and Procedures a. Shredding or incinerating of documents before discarding them -Knowing that documents of the company are vital to the company’s success. there would be no way that they can be retrieved. b. . Control over output documents ERP manuals were discarded in a manner that they can still be retrieved. the output documents of the company won’t be easily accessed and read by anyone especially by outsiders.

Prevention controls in the operating system -The company must equip its computer system with a firewall and antivirus software programs to reduce. if not totally eliminate. Specific Control Techniques and Procedures c. These are some ways of preventing the computer systems to be infected by malicious and destructive programs. Inadequate prevention controls regarding the operating system -Stephanie Baskill was able to obtain access of the company’s files through the application of the Trojan horse technique. . risks of files being accessed or even destroyed and corrupted.Control Structure Weaknesses 2.

Detection controls in the operating system --There must be a personnel of the company that is assigned of reviewing the adequacy of the operating system.000 dollars a month. . It was only detected after 16 months.Control Structure Weaknesses 3. 125. appropriate actions must be undertaken as soon as possible. which is a very long time Control for the company notand to make a move. on average. After detecting threats or destructive programs in the operating systems. Specific Techniques Procedures d. Inadequate detection controls regarding the operating system -The company was not able to detect right away the fraud made by Stephanie that made it lose.

Control Structure Weaknesses 4. e. This is either because. Message Sequence Numbering and Message Transaction Log must be implemented . Inadequate review of transactions and company’s records -Changes in the transaction logs made by Stephanie were not noticed. management reports were not properlySpecific reviewed or changes were not reflected and Control Techniques andproperly Procedures recorded. Proper and frequent review should be conducted -Management should properly and carefully review any changes or additions to vendors or suppliers’ list that were reflected for accuracy. f.

.END - GROUP #3 BATAC-EDILLON-GAÑA-SIBUG-TUAÑO .