Back p data in other place in order to keep documentation alive. Fire 4000 1 . Whenever talk about nature disaster, the first come to mind is insurance. 2.
Launch emergency early warning mechanism. 3. Back up data in other place in order to keep documentation alive. Software failure 4,000-1 8000 1,400 1 . Monitor whole processes and check which software does not work well. Contact the software company to see if they can fix the problem. If they could not, exchange the software. 2.
- Thesis Statement
- Structure and Outline
- Voice and Grammar
Data need to be back up in order to avoid to loss documentation together. Equipment failure 2,000 1 .Keep eye on your equipment and estimate the deprecation year. Replace the equipment as soon as possible , decrease the cost.
2. Make sure workers use it in a right way. Provide training if necessary. Embezzlement 1,000 1 . Separate the work if possible. Sharing the work among several employee.
2. Promote credit card method. 3. Manually monitoring, such as video camera monitoring. B. If you were the manager responsible for the Espy Company’s information processing System, which controls would you implement and why? Would take the average point as the estimated cost, therefore Average estimated costPossible loss amount 5,200 Brownout 1,425 570 power surge 375,000 56,250 Fire 225,000 22,500 Software failure 11,000 1,100 Equipment failure 1 o,oho Embezzlement 6,000 By comparing the possible amount to the amount may cost, it is worth to implement the Brownout, Power Surge, Flood, Fire and Equipotent failure. 12-12.
Basic Requirements (Systems Reliability Assurance) 1 . Identify two security, availability, and privacy risks that Basic Requirements faces. 2.
For each risk identified above, describe two internal controls Basic Requirements should use to protect against these risks. Security Internal control Unauthorized theft and access The employee will be the potential hidden trouble. They may access some date and stole it.
1 -Give limited people to access the data. (set up authorizations. ) Make sure only people who needs what information and who have rights to edit what information.
2. Change the password periodically. Credit card number risk Card information was stolen by hackers and sold to others. Result in customer loss their money.
1. Require technical support make sure no potential risk for hackers to enter the system. 2. Setup firewall.
Availability Inventory Fifth inventory could not be fulfilled in time, customer may not satisfied with their services. 1. Use historical data to predict the inventory needed and prepare early. 2. Analysis selling data based on the customer data.
Website The website may not available for a big amount of customer to shopping at the same time. Technical errors might appear and low customers satisfaction may occur; sometimes, they may loss money. 1 . Require technical support make sure no potential risk for hackers to enter the system. 2. Update the website server periodically. Privacy Customer information Customer information may be stolen and sold.
1. Encrypted is required as account number. 2. Password are required.
Customer loss their money. 1 . Require technical support make sure no potential risk for hackers to enter the system.
2. Setup firewall. 3. The accounting student who is evaluating the reliability of Basic Requirements’ inform- nation system is interested in becoming an IT auditor. Describe some of the specific actions an IT auditor would take to verify that Kara and Scott have adequate controls in place concerning privacy.
He/ She would have a basic idea about Basics business process. By communicating with Basics employee He/ She can draw a DEED and monitor the weakest problem though out the whole process. He/ She should see what could be added into the internal control process. Which process was duplicated and should be reduced. After these, design a internal control model and test it.
Later on keep working as data or business processes changes. Extra 1: Briefly describe what CAL is designed to do and how it was used in each case (i. E. Identify 3 specific tasks as to how CAL was used in the audit framework and nee way it was used to enhance the “analytics” capabilities of the company).
For Emirates, summarize the broad impact of CAL in the case. Baby-sat Health: Using CAL definitely make their business more efficient and the processes are more automated. For more than a decade, CAL data analytics has been a focal point in the Baby-sat Health audit plan. The Audit Services team uses custom analytics to test a wide variety of transactions across the organization. Example: 1 .A new daily Accounts Payable (AP) test looks forward to find potential duplicates up to four days before the payments are made.
The analytics run overnight to search for matches on vendor names, dates, invoice numbers and other similarities. After correction made by AP members. The audit team then uses the CAL reports and feedback data to fine-tune the filtering parameters and ensure the analytics are working as intended 2. CAL was used to perform access testing on financially significant applications and sensitive electronic medical records. 3.
Other CAL analytics target healthcare- specific revenue processes. Baby-sat auditors have developed a unique analytic process that compares data between physician and hospital billing yester to pinpoint lost revenues. Impact: In just two years, the CAL continuous auditing program has recovered a total of US$2. 5 million in lost revenues. The analytics have also saved approximately US$18. 5 million in cost-avoidance -? a calculation based on preventing duplicate payments and correcting inaccurate billing functions.
CAL helped with Basset’s internal control by providing analysis.It also made the their processes automated. Emirates: CAL for the Internal Audit department reviewing more than 300 audit centers. It helps their business process more automation. CAL also helps Emirates to monitor their capabilities. Impacts: 1 . Makes the business more efficient.
(Dramatically less time required to extract, prepare, format and generate information for audits – in some cases, several weeks worth of labor has been cut to 10 minutes or less. ) 2. High quality analysis was provided.
(Fewer manual errors and omissions with complete data coverage, rather than random sampling.Deeper, more thorough data analysis with higher quality results and a standardized reporting format. ) 3. Higher level internal control. (Continuous monitoring hat quickly identifies exceptions and control gaps, and provides greater business assurance. ) 4. Automation.
(Targeted analysis that can automatically be conducted across disparate corporate systems and data formats. ) problem: please read the white paper and identify a half dozen or so of the more meaningful queries suggested by the Center for Audit Quality.Also, comment briefly on what seems to be the more useful attributes of applying IDEA to audit engagements. Auditor need to identify what types Of entries exist; whether there are a high number of manual journal entries and what counts are most often affected; check the volume of activity in loan accounts; see whether excessive credits that are not from an accounts receivable posting source are included in accounts receivable; whether excessive debits that are not from an accounts receivable posting source are included in revenues; whether the ledger balances and how many transactions are included in each account. . Find journal entries that do not balance 2. Find manual entries 3.
Find gaps in journal entry number sequence 4. Sample journal entries (random or high dollar) 5. Find high-dollar journal entries 6. Find specific journal entries (by month, day or JEW#) 7. Find possible duplicate account entries 8.
Find all entries containing specific account(s) 9. Find round-dollar journal entries 10. Find all entries within a range of accounts 1 1 . Show journal entry information by employee Find post-dated entries 12.
3. Find all entries made by a specific employee 14. Find entries with unusual (non-standard) descriptions 15. Show values for the ‘journal entry type’ code 16.
Find entries posted on weekends Above all, these seemed to be more useful: 1 . Find journal entries that do not balance is important. As long as there’s unbalance account, there may be a mistake in the account.
Auditor should monitoring these account and figure out the problems.