The last section of this paper will present a memo showing a brief analysis of the aforesaid organizational charts.
III ? Memo to the Audit Manager
July 4, 2007
To: The Audit Manager
Subject: ES & L Assignment of Responsibility for Control and Organizational Structure of the EDP department
We have carefully analyzed and studied the assignment of responsibility for control and the organizational structure of the EDP department of Equivocal Savings and Loan Association and have come up with or identified several strengths and weaknesses... displayed 300 characters
Custom written essay
All essays are written from scratch by professional writers according to your instructions and delivered to your email on time. Prices start from $10.99/page
Your research paper is written by certified writers
Your requirements and targets are always met
You are able to control the progress of your writing assignment
You get a chance to become an excellent student!
Get a price guote
The different commendable areas with regard to the assignment of responsibility for control include:
? The establishment of an Audit Committee in the board of directors which ensures that adequate controls are built into the system
? The presence of a control group in the accounting department which monitor the accuracy and completeness of data processing
? Reports from the internal auditors on controls built into the new systems which are submitted to and reviewed by the Audit Committee
? The active participation of the chairman of the board regarding audit and internal control matters through constant communication with his subordinates
? The presence of a Vice President for Finance who practically performs the function of a corporate financial manager
Included among the flaws in assigning responsibility for control are the following:
? Non-participation of senior corporate management in the overall approval of EDP systems design
? The performance of incompatible functions by the EDP specialist in the internal audit department
? Non establishment of an outside control group which could have act as an independent check on the functioning of the EDP department
Regarding the organizational structure of the EDP department, the following strong points are noted:
? Assignment of job title for each person in the department
? Systems analysis and systems programming are separated from operations
? The documentation director basically performs the function of a librarian
? The function of a network administrator is performed by the communications analyst
However, the structure of the EDP department also contains several weaknesses such as:
? Non-establishment of a control group which would have been important in monitoring the accuracy of transaction processing and ensuring that no data are lost or mishandled within the EDP department
? Failure to have a security officer and a quality control manager which would have been vital in a large company like ES & L
In summary, the company currently has done a fairly effective job in assigning responsibility for control and structuring its EDP department... displayed 300 characters
