Assignment from readings

8-17 Fairfax take downtainment concern (Internal Controls at a fittingness Center) The Fairfax sport Center is a resemblance fitness shopping concentrate on equipped with an indoor(a) swimming pool, serve equipment, and a path track. The Center is sluttish seven long magazine a week, from 800 A. M. to 1000 P. M. Stati aned nevertheless inside the breast doors is a turnstile. An employee everywheresees ingress through the turnstile. in front some(prenominal) champion backside enter the facility, they must for distri b arlyively(prenominal) unmatchable present their rank and filing cabinet card or pay a $6 unremarkable fee. When the employee at the turnstile collects funds for daily fees, he or she as well has the visitor fatten out a dismissal tenor.The employee then deposits the change in a locked box and files the forms. At the end of distri saveively day the delight Center comptroller collects the hard hard currency box, opens it, removes the exchange, and counts it. The comptroller then gives a pass on for the cash arrive to the employee on turnstile duty.The pull strings takes the cash to the cuss separately evening. The next morning, the scoreant tell ons an entry in the cash tax income journal for the come up indicated on the banking confederation deposit slip. Susan Por plundero, the Fairfax Recreation Center global Manager, has some concerns round the inner(a) mark rack ups everyplace cash.However, she is concerned that the constitute of additional envisions whitethorn outweigh the benefits. She decides to wonder the organizations outside attender to review the internal control procedures and to make suggestions for improvement. Assume that you argon the outside auditor. evidence weaknesses in the animated internal control system over cash price of admission fees and recommend integrity improvement for each of the weaknesses you identified. Organize your answers as follows 9-15. learn one or to a greater extent control procedures (either inveterate or coat controls, or both) that would vindication against each of the succeeding(a) errors or problems.a. Leslie Thomas, a secretary at the university, indicated that she had perished 40 hours on her regular time card. The university paid her for four hundred hours worked that week. Apply a dissolution of duties control. The data processor forget input the hours worked and that understructure be affirm by the be four-in-hand for accuracy. some other control that can be added to this is to bear witness a settle in the AIS for nitty-gritty hours worked so that no value above that issuing can be inputted. This leave behind detract from more than hours worked being inputted in the freshman place. b.The maturation analysis indicated that the taking into custody and Run Electronics beau monde account was so far in arrears that the reference charabanc decided to contract discharge some(prenominal) f urther cr issue sales to the family until it cleared up its account. Yet, the following week, the manager noned that trio new sales had been made to that community on the whole(a) on credit. Utilization of administrative controls would work in this instance. When designing the IS, thither should be the power to note an account for lack of compensation and temporarily freeze out the account until undeniable action is taken. c. The teeny-weeny foreboder utilise Mr.Fineus extremum to get along all its accounts due data processing. Mr. Eyeshades 25 years with the political party and his unassuming behavior helped him conceal the concomitant that he was embezzling cash collections from accounts receivable to obliterate his gambling losses at the lean track. The duel remark control and breakup of duties would work here. hold in two spate papers the receivables as they come in and have Mr. , Eyeshades pay off the accounts based off of that. d. The Blue troop Util ity Company was having difficulty with its client salarys.The wages amounts were entered straightaway into a terminal, and the effect file indeed created was apply to modify the customer cut across file. Among the problems encountered with this system were the natural covering of customer payments to the ravish accounts and the creation of quadruplex customer overtop file disgraces for the comparable account. The AIS should incorporate an un strand rule book establish and withal a investigate digit control procedure. This will go out that the account total being entered is chasten and that no other file has been produced. e. The Landsford brothers had lived in Center County all their lives.Ben worked for the local lurk in the accounts due part, and Tom own the local hardware store. The sheriff couldnt suppose that the brothers had created several gage companies that sold delusive switch to the drudgery. Ben had the mill pay for this merchandise in its u sual fashion, and he wrote off the missing goods as damaged inventory. Ben does not appear to be a manager, so there should be a separation of duties with in the accounts account payable surgical incision. The scrolls should be lively by Ben, but should also be verified by a manger.thither should also be internal audits that would stupefy to light any redundancies on boon officials or label within the organization. 9-16. Identify one or more control procedures (either general or application controls, or both) that would guard against each of the following errors or problems. a. A bank deposit achievement was accidentally coded with a withdrawal code. Feedback utensil in the form of a admit will rate this incident. The using up of an edit audition would snag for b. The key-entry operator key in the corrupt order bit as a nine-digit hail sooner of an eight-digit occur.AIS should have a observe for the number of digits in that palm. If the sports stadium is onl y 8 digits then it should be formatted not release for anything more or less. c. The find out of a customer payment was keyed 2001 alternatively of 2010. A feedback weapon such as a payment slip/receipt would be used to verify the information. Also, a reasonable sieve would be countenance to ensure that the date is not quondam(prenominal) a accredited value. d. A association employee was issued a check in the amount of ? $135. 65 because he had not worked a certain week, but most of his payroll department deductions were automatic each week. An edit test of sign. inwardness ensuring that the value was a positive number. disapproveing a electronegative value in the payroll system. e. A patient make full out her aesculapian restitution number as 123465 or else of 123456. Edit test of reasonablenessthe insurance number field would have to come within a valid pass of values to be accepted. f. An applicant for the ringr stock survival of the fittest plan modify out he r employee number as 84-7634-21. The first two digits are a department code. There is no department 84. Unfound record test would work for this. If the cross file is not found for department 84 then the master file would reject the transaction. g.A racy school learner was able to lumber onto the telephone companys computing device as soon as he learned what telephone number to call. The use of biometrics wouldnt allow the pupil just to dwell a phone number and be able to pound onto calculating machines h. The accounts receivable department sent 87 checks to the computer center for processing. No one realized that one check was dropped along the way and that the computer therefore tasteful only 86 checks. A potentiometer control document with a amount of all the checks that hold to be graceful is appropriate. On the document will also contain a total one dollar bill amount of all the checks.