Acca paper F1 fia diploma in Accounting and Business Accountant in Business (AB/fab) exam kit

Required:
Write down which two of the above are those functions identified by Fayol by selecting TWO of the letters
from (A, B, C, D, E).
(2 marks)
(4 marks)
13
[P.T.O.
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2
(a)
XYZ Company installed a computer system to handle its main accounting functions including accounts
receivables, accounts payables and payroll. Management has a number of concerns about access to the system
and are considering a number of controls to overcome those concerns.
The following are types of control they are considering:
A
General control
B
Application control
Required:
Classify the following as either A (General control) or B (Application control):
(i)
Locking the computer room to prevent access to non-employees.
(ii) Limiting access to the payroll system by making it password protected.
(iii) Taking backup of data files each evening and holding backup copies off-premises.
(iv) Providing basic IT training to the entire staff to prevent errors in using the system.
Note: The total marks will be split equally between each part.
(2 marks)
(b)
A company has considerable cash collections on a regular basis. The cashier receives the cash, records it and
then banks it at the end of each day. Since a single person is responsible for access to cash, the financial director
is concerned that fraud and error may occur in cash handling and recording. He proposes use of appropriate
internal controls to prevent any such errors or misappropriations.
The following are specific examples of internal controls used in business:
A
Segregation of duties 
B
Induction and training