Sap Accounting

Each question asks for an explanation along with your answer. No explanation will automatically result in no points being earned for an answer. This is applicable for all questions across all assignments.

Question about FI/CO01, Worth 2 Points:

1) A general ledger bank account was created in this exercise. Reconciling the balance per the general ledger to the balance per the bank statement is a very important internal control procedure. Is the reconciliation of the balance per the general ledger to the balance per the bank statement a preventive control or is it a detective control?  Explain. 

Questions about FI/CO02, Each Worth 2 Points:

1) You created a GR/IR account in this exercise. For what is GR/IR the abbreviation? As discussed in the SAP Chapter 5 text, explain why the theoretical balance of this account should be zero. Provide support by referring to the two previous MM exercises involving a GR/IR account. 

2) As discussed in the SAP Chapter 5 text, what are the two timing differences that may result in the GR/IR account having a temporary balance? Is an adjustment necessary for any kind of misstatement to the general ledger on an overall basis? Explain. 

Questions about FI/CO03, Each Worth 2 Points:

1) The screen below shows the result of completing step 5 of the exercise before selecting enter. 

Which transaction-related internal control objective (discussed in the SAP Chapter 1 text) is most enhanced through using a reference account to create another account? Explain. 

2) Is the use of a reference account to create another account a preventive control or is it a detective control?  Explain. 

Questions about FI/CO05, Each Worth 2 Points:

1) Assume when completing step 3 of this exercise, you realized you skipped FI/CO01, thereby showing no bank account in the G/L Account List you generated. You would then have to go back to complete FI/CO01 and then complete this exercise. 

Which transaction-related internal control objective (discussed in the SAP Chapter 1 text) is most enhanced in this situation? Explain. 

2) Is reviewing the G/L Account List a preventive control or is it a detective control in this situation? Explain. 

Questions about FI/CO07, Each Worth 2 Points:

1) Assume when completing step 10 you entered -1000 because the bank account is being reduced by a payment. Note the error message at the bottom of the screen after selecting enter. 

What kind of application control (discussed in the SAP Chapter 1 text) is present in this situation? Explain. 

2) Which transaction-related internal control objective (discussed in the SAP Chapter 1 text) is most enhanced in this situation? Explain. 

Questions about FI/CO08, Each Worth 2 Points:

1) In this exercise, you displayed your utilities account balance because you recorded an entry to that account in a previous exercise. 

Assume you recorded the entry to the wrong account in the previous exercise. The following message would have resulted when completing step 3 of this exercise. 

What transaction-related control objective was not met in this situation? Explain. 

2) Assume instead you skipped the previous exercise in which you were to record utilities expense. What transaction-related control objective was not met in this situation? Explain. 

Questions about FI/CO09, Each Worth 2 Points, Except Where Noted:

1) Assume when completing this exercise that you mis-entered the amount in step 6. Note the error message at the bottom of the screen when completing step 8. 

What kind of application control (discussed in the SAP Chapter 1 text) is present in this situation? Explain. 

2) (Worth 3 Points) This is not the only FI/CO exercise containing this application control. What are the other exercises for which there is such a control? Explain each.

©2021 Ronny Daigle, Fawzi Noman, and Ross Quarles

Page: 11