Question

For each of these five separate cases, identify the principle(s) of internal control that is violated. Recommend what the business should do to ensure adherence to principles of internal control.

3. Nori Nozumi posts all patient charges and payments at the Hopeville Medical Clinic. Each night Nori backs up the computerized accounting system to a drive and stores it in a locked file at her desk.

Short answer

Answer

Violates the proper application of technological controls

Step-by-step solution

Step-by-Step SolutionStep 1: Introduction to topic

Technology controls: Technology controls can likewise be known as a procedure or policy that assures that the information technology utilized by an association works as expected, that information is reliable, and that the association is consistent with applicable laws and regulations.

Recommend ensuring adherence to principles of internal control

While the day-to-day reinforcement is excellent internal control, the tape needs to be removed from the premises consistently. If the building and computer are destroyed, one can restore the information from the tape since it is securely kept off the premises. The organization ought to carry out a policy of putting away tapes off the premises daily.