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CS Professional · Artificial Intelligence, Data Analytics and Cyber Security - Laws and Practice · Enterprise Resource Management

Kaveri Auto Ltd. finds that its ERP procurement user can create a vendor, raise a purchase order for that vendor and approve the payment. Which control weakness exists, and what is the most appropriate ERP-level remedy?

The weakness is lack of segregation of duties, which allows one user to commit and conceal fraud such as paying a fictitious vendor. The remedy is role-based access in the ERP so vendor creation, purchase ordering and payment approval sit with different people.

  1. ALack of data backup; remedy is more frequent tape archiving
  2. BAbsence of segregation of duties; remedy is role-based access so that vendor master creation, ordering and payment approval are assigned to different usersCorrect
  3. CExcess network bandwidth; remedy is throttling the network
  4. DPoor user interface design; remedy is changing the screen layout

Explanation

One user controlling creation of the vendor, ordering and payment approval enables fictitious vendor fraud. The accepted remedy is segregation of duties implemented through role-based authorisations in the ERP. Backups, bandwidth and screen design do not address the conflict of duties.

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