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Question 1: Imagine that you are the manager of Information Technology department working on a system conversion for an Accounting Department. Consider the activities in Accounts Payable and Accounts Receivables, and identify those duties that may be incompatible for a manual system but highly effective in an automated system. Compare and contrast the general and application controls used in both systems. Recommend an approach to automating the process. Explain your answer.
Question 2: Assess the risks that are inherent in automating manual accounting systems to an IT environment, giving consideration to the factors that influence supervision, the firm's obligation to maintain adequate accounting records, and transaction integrity. Recommend a strategy to minimize the risk. Provide support for your recommendation.
Nakatomi Toyota. Nakatomi Toyota buys its cars from Toyota Motors (U.S.), and sells them to U.S. customers. One of its customers is EcoHire, a car rental firm.
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