Scribd Logo
Upload

Welcome to Scribd!

  • 311 views

    PDF

    Uploaded by

    wicak
    The IS department at Des Peres Drug Stores has several control weaknesses that could negatively impact the company. Key issues include overworked IS staff, lack of change management processes, informal reporting procedures, and segregation of duties issues. The company should implement formal IS planning, testing for program changes, written procedures, and separate incompatible duties. Transitioning to a client/server network could help by enabling better access controls if implemented correctly.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    PDF

    Uploaded by

    wicak
    311 views1 page
    The IS department at Des Peres Drug Stores has several control weaknesses that could negatively impact the company. Key issues include overworked IS staff, lack of change management processes, informal reporting procedures, and segregation of duties issues. The company should implement formal IS planning, testing for program changes, written procedures, and separate incompatible duties. Transitioning to a client/server network could help by enabling better access controls if implemented correctly.

    Original Title

    2116110390530543.pdf

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The IS department at Des Peres Drug Stores has several control weaknesses that could negatively impact the company. Key issues include overworked IS staff, lack of change management processes, informal reporting procedures, and segregation of duties issues. The company should implement formal IS planning, testing for program changes, written procedures, and separate incompatible duties. Transitioning to a client/server network could help by enabling better access controls if implemented correctly.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    311 views1 page

    PDF

    Uploaded by

    wicak
    The IS department at Des Peres Drug Stores has several control weaknesses that could negatively impact the company. Key issues include overworked IS staff, lack of change management processes, informal reporting procedures, and segregation of duties issues. The company should implement formal IS planning, testing for program changes, written procedures, and separate incompatible duties. Transitioning to a client/server network could help by enabling better access controls if implemented correctly.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    You are on page 1of 1

    CASE: IS Activities Control The in-house IS personnel work an average of 84

    hours per week, including night shifts and


    Des Peres Drug Stores, Inc., a rapidly growing Los weekends. On a number of occasions, many IS
    Angeles-based business, operates 1754 full-service staff members perform duties that are not listed
    drug stores throughout the United States. About 50 in their written job descriptions. In one instance,
    new drug stores are opened annually. The the computer operators balanced accounts and
    companys annual revenues total $8.5 billion, and it signed checks.
    uses a mix of mainframe, mini-, and The firm use an informal process to determine
    microcomputers. The firm plans to reengineer its which reports to print and what manager are to
    business processes and downsize its mission-critical receive the reports.
    applications to an enterprise wide client/server Computer operators frequently complain about
    network. These efforts are expected to be completed the lack of in-house manuals. The few manuals in
    in about four years. existence often do not contain clear checklists
    and step-by-step operating instructions.
    Their external audit firm has just completed an
    Computer programmers and system analysts are
    audit of the information system (IS) department.
    organizationally located in the same department.
    Following are excerpts from the audit firms notes.
    Data-entry personnel are not provided with
    The IS manager has not prepared short-term or written input preparation procedures to guide
    long-term plans of how the company will upgrade them in entering data over terminals.
    hard-ware and software to meet changing Each data-entry person is responsible for
    technology and growth needs. entering, reviewing, and posting the transactions.
    Software updates for two critical accounting Password enable accountants to access
    applications remain unimplemented for two accounting applications software and enter
    years. journal entries, prepare reports, and perform
    Because of rapid expansion plans and the critical other functions. Occasionally, an accountant will
    shortages of qualified IS personnel, the IS perform duties such as entering general ledger
    manager has contracted with 50 outside journal entries as well as balancing the accounts
    programmers who work out of offices in Calcutta containing those same entries. A few accountants
    and Bombay, India. The Programmers use make journal entries, and handle cash and other
    microcomputers linked via modem to Des Peres negotiable items.
    mainframe computers to make changes to live
    production programs. They rarely notify the IS Required
    manager of such changes, and there is no formal
    1. Given the audit findings, identify weaknesses
    process in place for testing the changes. Recent
    in general/and or application controls. For
    undocumented program changes have caused
    each weakness identified, state the potential
    program errors that generated erroneous data.
    impact of the weakness on the company.
    The contract programmer manager working in
    Bombay uploads all program changes made by 2. Based on number 1 above, you are asked to
    the staff programmers to a Web site. Any give three suggestions for improvement Des
    Programmer can type in the http address to log- Peres Drug Storess information systems.
    in to the sites server. They use Adobe Acrobat to
    3. How will the proposed enterprise wide
    study the program changes and then e-mail
    client/server network affect general and
    suggested improvements to all contract
    application controls?
    programmers.

    You might also like