Question A (30 points) As you know, there are several ways to migrate from one system to another. First, describe each of the methods that can be used. Secondly, describe the advantages of each method. Next, describe the disadvantages to each method. Finally, identify and discuss the pros & cons of purchasing a commercial-off-the-shelf accounting system vs building one from scratch.
Question B (30 points) For each item, identify & describe at least three internal control procedures that would reduce the following risks in a manual system:
a. The purchasing department not being notified when goods need to be purchased.
b. Purchase orders being prepared based on unauthorized requisitions.
c. Payments may be made for items not received.
Question C (30 points) In order to understand an existing system, you must collect data about the system. There are several methods (at least three) that can be used to help you to collect data about the system so that you will have an understanding of it. Identify & describe each collection method and identify at least three strengths / weaknesses for each method.
Question D (30 points) We know how information technology can greatly enhance the processing of transactions and distribution of output from an AIS. For the Revenue & Expenditure cycles, identify at least three specific ways (tools) that information technology can be used to improve each of these processes. Next, you will need to identify & describe three internal control methods that is needed for each item
Question E (20 points) You have been hired by SEC to present information on the effectiveness of SOX (Sarbanes-Oxley Act of 2002). Using what we learned about usefulness of information, identify and describe SOX , using the characteristics of useful information. Be sure that you provide a definite of each of the characteristics of ‘useful information’ when presenting your information.
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