Discuss five types of control

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Question - As you are planning the annual audit of Norton Corporation, you note that the company has a number of user-operated computers in use in various locations. One of the machines has been installed in the stores department, which has the responsibility for disbursing stock items and for maintaining stores' records. In your audit, you find that one employee receives the requisitions for stores, disburses the stock, maintains the records, operates the computer, and authorizes adjustments to the total amounts of stock recorded by the computer.

When you discuss the applicable controls with the department manager, you are told that the user-operated computer is assigned exclusively to that department. Therefore, the manager contends that it does not require the same types of controls applicable to large IT systems.

Required:          

1. Comment on the manager's contention.

2. Discuss five types of control that would apply to this microcomputer application.

Reference no: EM131572986

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Discuss five types of control : As you are planning the annual audit of Norton Corporation, Discuss five types of control that would apply to this microcomputer application
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