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Bruce McCuaig, a Certified Internal Auditor (CIA) and Certified Information Systems Auditor (CISA) writing in Internal Auditor Magazine in 2005, comments with experienced insight on the issue of segregation of duties There is not a shred of definitive proof in the audit literature that segregation of duties is generally effective or worth its often significant cost In fact, the preponderance of evidence indicates that segregation of duties is the most overrated and often least cost-effective control design option available The real problem is lack of risk assessment, lack of a control environment that places emphasis on ethical standards and competence, and lack of monitoring when conflicting duties exist To bolster this assertion, McCuaig gives an example that could come right out DexCo s situation In an operating environment, a foreman may requisition the purchase of materials They are purchased from an approved supplier by a purchasing agent.

management s involvement in advance of the turn over to production, normal maintenance and operational management processes should take over This task is necessary for several reasons It allows for the formal conclusion of the implementation phase, where staff members are stressed and controls are limited for the sake of production impact This problem needs to be rectified as soon as possible Also, the normal processes are presumably better able to deal with the processes they were designed to manage and eliminate the possibility of mistakes and oversight from ad-hoc procedures used in an interim fashion Better control through well-tested processes leads to lower risks and better measurement of what is actually happening as well.

The growth of subprime lending, especially mortgages with low teaser rates that later ratchet up, has been the main driver of mortgage losses. The growth of subprime lending was, in turn, driven by the willingness

The result is often chaos purchasing orders from the lowest bidder, the foreman does not get the material specified, or gets it late What happens really The foreman picks up the phone and orders the material directly from the supplier [in violation of internal controls that specify segregation of duties in purchasing] and purchasing prepares the paperwork after the fact Time and again, honest, well-meaning employees, in the pursuit of legitimate business objectives, find themselves hopelessly encumbered by these controls while trying to do their jobs Thus, they simply bypass or subvert and violate them (Internal Auditor, April, 2005) In the case of Reggie Marchaldon, DexCo s internal controls clearly stated that the division General Manager was prohibited from rewriting purchase orders to suppliers once they had been entered into the system.

283) if (answer[serialno][0] != null) 284) answer[serialno][0] = 285) answer[serialno][0]+","+"4"; 286) else 287) answer[serialno][0] = "4"; 288) answer[serialno][1] = "U"; 289 )} 290) else if ((gfd.equals("Y")) && (county == 266)15)) { 291) if (answer[serialno][0] != null) 292) answer[serialno][0] = 266)answer[serialno][0]+","+"5"; 293) else 294) answer[serialno][0] = "5"; 295) answer[serialno][1] = "U"; 296) } 297) else if ((gfd.equals("Y")) && (county == 18)) { 298) if (answer[serialno][0] != null) 299) answer[serialno][0] = answer[serialno][0]+","+"6"; 300) else 301) answer[serialno][0] = "6"; 302) answer[serialno][1] = "U"; 303) } 304) else if ((gfd.equals("Y")) && (county == 21)) 305) { 306) if (answer[serialno][0] != null) 307) answer[serialno][0] = 300)answer[serialno][0]+","+"7"; 308) else 309) answer[serialno][0] = "7"; 310) answer[serialno][1] = "U"; 311) } 312) else if ((gfd.equals("Y")) && (county == 24)) 313) { 314) if (answer[serialno][0] != null) 315) answer[serialno][0] = 300)answer[serialno][0]+","+"8"; 316) else 317) answer[serialno][0] = "8"; 318) answer[serialno][1] = "U"; 319) } 320) else if ((gfd.equals("Y")) && (county == 27)) 321) { 322) if (answer[serialno][0] != null) 323) answer[serialno][0] = 300)answer[serialno][0]+","+"9"; 324) else 325) answer[serialno][0] = "9"; 326) answer[serialno][1] = "U"; 327) } 328) } 329) else 330) puttext = puttext + sb.toString() + "\n\n"; 331) sb.delete(0,sb.capacity()); 332) } 333) iq++; 334) } 335) // The text returned is put on the scrolltextbox initialized below.. 336) text = new ScrollTextBox(puttext,0,0,150,130); 337) bt1.paint(); 338) // Painting various GUI components on the screen...

In addition, the internal controls stated that shipments had to be validated by an individual separate from the one who originated the order What happened in reality Over time, Marchaldon was able to fire or shift the personnel who were responsible for enforcing these separations of responsibility He replaced them with people he could control, or who simply didn t know any better The boss asked them to rewrite a PO and they did it DexCo s manual of internal.

You should determine that this demarcation between start up and normal processing does not extend far into the future when reviewing the planning and that definite criteria for transitioning the normal controls into effect happen in a way that minimizes risks to the organization Normal problem analysis and error tracking processes should then be used to summarize problems along with the rest of the operations and be prioritized in a similar fashion By taking the magnifying glass away from the process, so to speak, the overall sense of problem severity can now be weighed along with other operations and production issues An item s relevant magnitude and the resources necessary to correct it can then be assigned based on total IS organizational requirements, needs, and proper focus.

the W3C XML Working Group page at www.w3.org/XML. At this site, you will find lots of information about both XML and XSD.

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