SESSION GOAL:  After completing this session, you should understand application controls and their related testing for assurance purposes.

• Read Oliphant, An Introduction to Computer Auditing - Part Deux, No. 15A, ITAudit Forum, February 1, 2001
• Read Oliphant, An Introduction to Computer Auditing - Part Deux, No. 15B, ITAudit Forum, March 1, 2001
  
• Read Upper Plains Auto Rentals case in the COURSE MATERIALS section of Blackboard. As you read the case, think about the internal control issues. Identify any possible errors that could exist in the company's financial statements as a result of poor internal controls in the way the company conducts its car rental operations. For each potential error, identify the financial statement assertion involved and a measure that Upper Plains could implement to avoid the error by changing its system. Also be aware of and report any weaknesses that are not necessarily related to the financial statements. Use the following headings to organize your response:
  • Control Weakness (Risk)
  • Possible Financial Statement Error
  • Financial Statement Assertion
  • Ways to Avoid the Error
  Your solution will be due at the beginning of class. This is an individual project.