ACCOUNTING SYSTEMS and PROCESSES
Hello, dear friend, you can consult us at any time if you have any questions, add WeChat: THEend8_
ACCOUNTING SYSTEMS and PROCESSES (M)
TUTORIAL 7 – Answers Guide
BEFORE TUTORIAL 7
1 Read the material indicated below and attempt answers to the questions that
follow.
Material to read:
MyUni>
Data Analytics – Microsoft Power BI Material>
Topic 6 – Analyze sales data from Excel and OData feed.pdf
Key aims of Topic 6 are to strengthen understanding of importing from
heterogeneous data feeds (e.g., MS Excel and OData); preparing the data;
creating custom calculated columns; setting new field data type; importing
transformed queries; managing relationships between datasets; creating
visualisation and interacting with report visuals.
Students are expected to learn basic hands-on skills to carry out these tasks.
Students are expected to attempt tasks in this document before the tute and
raise questions about issues encountered during the tute.
2 Prepare the answers to the following questions from Computer Fraud and
Abuse Techniques (Romney & Steinbart Chapters 8 and 9):
Question 1
Discuss the following statement by Roswell Steffen, a convicted embezzler: “For
every foolproof system, there is a method for beating it.” Do you believe a
completely secure computer system is possible? Explain. If internal controls are less
than 100% effective, why should they be employed at all?
The old saying "where there is a will, there is a way" applies to committing
fraud and to breaking into a computer system. It is possible to institute
sufficient controls in a system so that it is very difficult to perpetrate the fraud or
break into the computer system, but most experts would agree that it just isn't
possible to design a system that is 100% secure from every threat. There is
bound to be someone who will think of a way of breaking into the system that
designers did not anticipate and did not control against.
If there were a way to make a foolproof system, it would be highly likely that it
would be too cost prohibitive to employ.
Though internal controls can't eliminate all system threats, controls can:
• Reduce threats caused by employee negligence or error. Such threats are
often more financially devastating than intentional acts.
• Significantly reduce the opportunities, and therefore the likelihood, that
someone can break into the system or commit a fraud.
Accounting Systems and Processes (M) Tutorial 7 Page 2
Question 2
A client heard through its hot line that John, the purchases journal clerk, periodically
enters fictitious acquisitions. After John creates a fictitious purchase, he notifies
Alice, the accounts payable ledger clerk, so she can enter them in her ledger. When
the payables are processed, the payment is mailed to the nonexistent supplier’s
address, a post office box rented by John. John deposits the check in an account he
opened in the nonexistent supplier’s name. Adapted from the CIA Examination.
a. Define fraud, fraud deterrence, fraud detection, and fraud
investigation.
Fraud is gaining an unfair advantage over another person. Legally, for an
act to be fraudulent there must be:
1. A false statement, representation, or disclosure
2. A material fact, which is something that induces a person to act
3. An intent to deceive
4. A justifiable reliance; that is, the person relies on the misrepresentation
to take an action
5. An injury or loss suffered by the victim
Fraud can be perpetrated for the benefit of or to the detriment of the
organization and by persons outside as well as inside the organization.
Fraud deterrence is the actions taken to discourage the perpetration of
fraud.