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Post UniversityACCOUNTING ACC430 1)A bank in California has 13 branches spread throughout northern California, each with its own minicomputer where its data are stored

Accounting

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operations to create a greater sense of “ownership” among the IT staff. After three months, under the new operation a survey indicated a marked increase in the level of job satisfaction among the IT group.

 

During the conduct of the audit planning phase of the annual financial audit, the auditor observed the Following practices: Individual IT professionals are assigned exclusively to support specific business functions such as sales processing, billing, customer account maintenance, etc. Each professional provides a range of IT services for their respective users including computer operations, program changes, and documenting the system through record layouts, system flowcharts, and program listings. They also reconcile computer output reports and logs of transactions errors.

 

Required:

 

1. 1. Identify and explain any control concerns you have with the new operations.

 

1. 2. What potential computer fraud might this operational approach permit?

 

 

 

5. DISASTER RECOVERY PLANNING CONTROVERSY

 

The relevance of a disaster recovery plan (DRP) to a financial statement audit is a matter of debate. Some argue that the existence of a DRP is irrelevant to the audit. Others argue that it is an important control that needs to be considered in the assessment of internal control. Required: Address both sides of this debate.

 

1. 1. Provide a logical argument why a DRP should not be considered in the audit.

 

1. 2. Argue why a DRP is an important control and should be reviewed within the conduct of a financial audit.