Case Study on Audit Control Policies
Added on 2020-04-01
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Running head: ASSESSMENT 2: CASE STUDY 1Assessment 2: Case StudyInstitution AffiliationName
ASSESSMENT 2: CASE STUDY 2Assessment 2: Case StudyAudit control policies are considered to be diverse procedures that are basically established so as to offer a reasonable assurance of the success of the management control (Fong, & Siahaan, 2011). This aspect is vital during auditing because it enhances the production of companies and its control. Situation (a)In this particular situation, the best policy or procedure that would have prevented or detectedthis error is that the company should have enforced account-name matching software so that when the accountant or sales manager key in the account number it will specifically rum into the system and pop out the matching name (Jayaraman, Ganesh, Tripunitara, Rinard, & Chapin, 2011). This aspect would have been important because it will prevent any situation that may involve entering wrong figures on wrong names. Verification of the customers’ names and account numbers should have also prevented such situations from happening because doing this will enable the clerk to realize the number and name of the owner that matches the sales order being made. Situation (b)In this situation where a keypunch operator incorrectly entered a customer payment as $575.00 instead of $5 750.00, the best policy or procedure that would have prevented or detected this error is counterchecking figures when posting. This aspect is significant becauseit will assist the company from making such material errors that may make the company lose more funds and thus loss to the company (Fong, & Siahaan, 2011). Use of confirming option when making payment should also be utilized as this police would have basically protected this kind of error from happening. Situation (c)
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