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It will be important to draw a distinction between data that is publicly available, which the IS auditor will be able to validate readily, and other more sensitive data that should be more closely controlled and protected The rationale for placing information into the various levels or categories is a.

3

Under the scenario outlined in Table 4-3, DexCo runs the risk of understating its expenses in the month by $750,000 This will result in an overstatement of its earnings, a mistake that will have to be corrected assuming it is caught in time in the following month Given that DexCo has three divisions, dozens of suppliers and global operations, the implications even for this simple type of example could be quite grave With this type of process, the company is, in fact, lacking sufficient internal controls that would permit management to attest to the their effectiveness as mandated by the Sarbanes Oxley Act The auditor may note this and record a material weakness in the control, a situation that will require remediation Then, there is the issue of approving suppliers, which can teach us a little about how internal controls tend to be linked.

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In this example, the COSO framework adopted by DexCo calls for Global Procurement to work only with approved suppliers Yet, as we have seen, the divisions of the company frequently tap into sources of supply that are not approved Going further, what if we look at the issue of who has the authority to approve new suppliers COSO guidelines would suggest that the individual with that authority be segregated in terms of roles and responsibility from the people who approve POs and invoices and authorize check payments Otherwise, DexCo faces the risk that an unscrupulous person could single-handedly create a new approved vendor, issue a PO to that vendor, and cut a check as well The vendor could easily be his brother-in-law, and they could split the proceeds.

The BIOS password mechanism is a feature on most laptop computers and some palmtops. It is implemented in the power-up instructions that are initiated when the power is turned on. For this reason it is nearly impossible to circumvent. Unfortunately, the BIOS password mechanism is often not enabled, because if the BIOS password is forgotten, the only way to start the device is to remove and replace the read-only memory (ROM) chip in the device. If a typical user password mechanism is also enabled on the device, the use of a BIOS password requires that the user remember and enter two passwords in order to use the device. Except in Windows NT, PED operating systems have not been rigorously evaluated and should not be considered secure. If the OS has not been evaluated, it is impossible to consider built-in password mechanisms as secure. As just noted, although BIOS passwords provide an implementation challenge if you lose them, you cannot use the device they do protect the device from general snooping.

If this same person also has the ability to validate shipment and receipt of merchandise, then DexCo could be robbed blind quite easily Internal controls, explains Linda Fuller, are most effective when they match business processes in day-to-day operations As outlined in Figure 4-3, the business process of sourcing goods involves three concurrent flows of activities The Global Procurement department, Division, and the vendor must operate together to ensure that the internal controls can work If there is a breakdown in communication or coordination between the processes, then DexCo is at a greater risk of a financial misstatement due to a breakdown in controls And that, Fuller adds, is largely a matter of information technology..

Grid computing, 29 Group movement, modi cations, 163 GROUND, 68, 73 Hierarchy, dynamic, 192 Hop(s), 74 examples of, 77 simultaneous, 77 splitting, 77 Hospital multirobot service, 216 robotized, 215 world representation, 216 Indexing, 83 Information, 62 INFRA, 68, 72 Infrastructure(s) creating, from the center, 193 distributed creation and recon guration, 186 dynamic, 185 global, using in WAVE-WP, 229 hierarchical, 186 link, 65 using, 76 modi cation, 190 persistent, creation of and moving with, 159 sketch, 229 Integration details, 42 with frontal variables, 108 with other systems, 105 Intelligent agents, 28 components, 3 network management, 236 solutions, 228 systems, 3 Interoperability, 2 Interpretation distributed, issues, 118 of expressions, 104 patterns, 104 Interpreter integration with other systems, 105 main components, 101 Implementation basics, 9 in nite, 65 JOINT, 68, 71

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