Beruflich Dokumente
Kultur Dokumente
Chapter 14
Threats Controls
1. Poor product design
resulting in excess costs
1 a. Analysis of costs arising from
2. Over and under production
product design choices
b. Analysis of warranty and
repair costs
2 a. Production planning systems
b. Review and approve
production orders and
schedules
c. Restrict access to orders and
schedules
Copyright 2015 Pearson Education, Inc. 14-5
3. Production Operations
Threats Controls
1. Inventory theft 1 a. Restrict physical access
2. Fixed asset theft b. Document movement of
3. Poor performance inventory
4. Suboptimal investments in c. Segregation of custody duties
fixed assets from authorization and
5. Loss of inventory or fixed recording
assets due to fire or disasters 2 a. Restrict access to fixed assets
6. Disruption of operations b. Keep detailed records of fixed
assets including disposals
3 a. Performance reporting
4 a. Solicit competitive bids
5 a. Insurance and physical
safeguards
6 a. Backup and disaster recovery
Copyright 2015 Pearson Education, Inc. plans 14-6
4. Cost Accounting
Threats Controls
1. Inaccurate cost data
2. Inappropriate allocation of
overhead costs
3. Misleading reports