ACCA Applied Knowledge · Business and Technology · Internal controls
An accounts clerk can create new supplier records in the purchase ledger system, enter supplier invoices and also authorise payment runs. Which IT or system control weakness is most significant?
The key weakness is inadequate segregation of incompatible duties in the access rights. One clerk can create a supplier, record invoices and authorise payment, so a fictitious supplier could be paid without anyone else noticing. Validation, backup and firewalls do not address this fraud risk.
- ALack of input validation on invoice dates
- BInadequate segregation of incompatible duties in system access rightsCorrect
- CAbsence of an offsite backup
- DUse of a weak firewall
Explanation
One person can set up a fictitious supplier, record a fake invoice and approve payment, enabling fraud. Access rights should separate creation, recording and authorisation. The other options are real controls but are not the issue described.
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