Reference no: EM132835265

When conducting procedures to obtain an understanding of the control structure in the Fiona Company, all of the internal control items listed below you checked "NO".

1. Does access to on-line files requires specific passwords to be entered to identify and validate the terminal user?
2. Are control totals established by the user prior to submitting data for processing? (order entry application subsystem).
3. Are input control totals reconciled to output control totals? (Order entry application sub system).

Requirement:

Problem 1: Describe the errors, irregularities, or misstatements that could occur due to the weaknesses indicated by the lack of controls.