Read problem H.57 Internal Control Considerations in End-User Computing Environments on page 920 of the textbook.

Required:

Assume that you are participating in the audit of Chicago Appliance Company and that the background information was obtained during the planning phase of the engagement. You have been asked to (a) consider the potential internal control weaknesses that exist in this end-user application and (b) assess how those internal control weaknesses could alter the audit plan for the current year. Be sure to write your information so that Chicago Appliance Management can fully understand.

Answer preview

In conclusion, the Chicago Appliance management needs to know that insufficient control measures may prevent the organization from performing a successful auditing plan. As much as the organization has invested in the end-user applications to enhance operations, this may lead to substantial financial losses. According to Goyal (2011), insider breaches, human error during data entry, and inadequate training of the workforce on how to implement the new applications are significant consequences. Therefore, the organization should train the employees on proper usage of the application to increase efficiency and reduce data breaches. Further, establishing policies on access permits and improving the system’s security would help reduce the huge losses that the company would experience.

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