A computer programmer from the payroll department created a fake employee number and entered this employee into the payroll database. She then prepared paychecks for this fake employee using the payroll systems and sent them to her own PO Box address. Identify 2 control procedures that could have prevented the problem, and explain why each of the controls would have helped.

1. Verify transactions independently .

2. Restricting access to programmers to change programs and data files when there is an error.

Explanation:

Verifying transactions independently by involving another employee re-entering transactions, then programming the software in order to compare the inputs and search out errors, is an essential control method.By doing this, errors are identified, reducing risk of incorrect transactions.When programmers have access to changing data and programs, this indicates a lack of internal control. Unrestricted access enables a programmer include or subtract certain elements of programs which could lead to errors in operations and transactions. There should be proper identification of duties and a programmer should be bound by specific functions, reducing the risk of this type of error.

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