ACC614 Week 4 Asignment Internal Control Considerations in End­User Computing Environments

Name

Ashford

ACC614

12th Dec 2022

Internal Control Considerations in End­User Computing Environments

Seeing as I am helping with the Chicago Appliance Company audit, I collected this history data during the engagement’s first stages. I have requested to evaluate the effect of internal control deficiencies on audit strategy.

a. consider the potential internal control weaknesses that exist in this end­user application

Although it’s a great step forward, adopting PCs for accounting process planning and documentation has several drawbacks. The PCs are intended for the business, not for the individual secretaries. The company does not stipulate a particular brand or computer model; rather, it is up to whatever clerk controls the operations to make that decision. A computer with complicated software and programs only the clerks can use is a common result. A new clerk may not be able to use the company’s computers once the outgoing clerk has departed, necessitating the acquisition of more computers (Louwers, Ramsay', Sinason, Strawser, & Thibodeau, 2015).

Month. The firm’s reporting needs and the types of data it wants to collect should guide the accounting software selection. However, this is not the situation at Chicago Appliance, where employees have been encouraged to find new applications for computers in their spare time. Since their usage is unmonitored, employees at the front desk may utilize the computers for personal reasons. The accounts receivable clerk does not have sufficient oversight while updating databases. This is because she has been quoted as suggesting that certain information about a customer is incomplete. This is a failure to properly separate tasks, which increases the risk that the clerk may tamper with the final tally.

The organization’s automated accounting systems are not being used in a standardized manner. This is because the accounts receivable department uses the system, but the fixed assets department is still wary of the software. This leads to inconsistency and confusion throughout the company as the clerk reconciles the data once it has been entered.

b. Assess how those internal control weaknesses could alter the audit plan for the current year.

The program and system used in PCs must be audited as part of the audit of accounting reports.

The auditor will have to analyze the mobility of the PCs in the workplace or for personal usage. This influences the integrity of the information submitted in the systems. Data security will include the usage of passwords, prevention against malware if the PCs are linked to the internet, and securing these devices (Louwers, Ramsay', Sinason, Strawser, & Thibodeau, 2015). Computer software must be audited to ensure it can provide reports and outcomes that comply with applicable tax and other regulations. To further ensure precision and honesty, we will test the software’s ability to resist tampering. The capacity of the clerk to grasp the software in full will also be examined to verify the information they submit into the system. The incorporation of the data in the system for easier queries utilizing simple processes will also be examined. This will successfully establish the receivable clerk declaration about the type of data that enters the systems. Samples of the fixed asset data entered into the system by a supplier and sent to clerks will be used to determine the reliability of the data entered. This will be validated against the physical books used by the clerk but also analyze the usage of the computer systems.

References

Louwers, T. J., Ramsay', R. J., Sinason, D. H., Strawser, J. R., & Thibodeau, J. C. (2015). Auditing

& Assurance Services (6 ed.). New York: McGraw­Hill Education,