5. TURNER PATIO FURNITURE (MANUAL AND STAND-ALONE PC SYSTEM)
a), b) see diagrams on the following pages.
c) Uncontrolled Risks.
Payroll
Fixed Assets
d. Controls to Reduce Risks
Physical Controls – Payroll
Fixed Assets
IT Controls
Limit tests,
Validaon controls,
Chapter 1 Page 2
Chapter 1 Page 3
Chapter 1 Page 4
6. GREEN PRODUCTS GARDEN SUPPLY (STAND-ALONE PC-BASED
ACCOUNTING SYSTEM)
a), b) see diagrams on the following pages.
c) Uncontrolled Risks.
Payroll
Fixed Assets
Chapter 1 Page 5
D. Internal Controls to Reduce Risks
Physical Controls
Payroll
2. Independent Verification – The AP and cash didbursements
3. Independent Verification – The general ledger department should
Fixed Assets
Chapter 1 Page 6
4) Segregation of Duties – The end user should not be solely responsible
IT Controls
Limit tests,
Chapter 1 Page 7
Chapter 1 Page 8