Chapter 4 Internal Control Questions

SD01 Questions:

1) In this exercise, you created an accounts receivable general ledger reconciliation account.
Assume that you forgot to enter one of the zeros in step #1, such as shown in the
screenshot below. Upon performing step #3, an error message would be shown at the
bottom of the screen.

What kind of application control is present, and on which combination of fields, based on the
error message shown
 A range check is present on the G/L account number field. This application control makes
sure that the minimum was met, an error message shows this.

2) Which of the four common control objectives is most enhanced by this control feature in
this situation? Explain.
The control objective most enhanced by this control function is a particular transaction is
properly authorized. A range check makes sure the minimum limit on field is met and whether
a special authorization is required. So, assuming all data had been input properly in this
situation, the range check is helping enhance that a particular transaction is properly
authorized because it is making sure that it should occur.

3) What kind of control is this control procedure – a preventive or detective control? Explain.
This control feature is a preventive control. The error message shown above blocks the user
to go and proceed unless the field requirement is made. Hence, the control prevents any kind
of error beforehand.

4) In what previous MM or PP exercise were you asked to identify the same application
control asked in question #1 above?
In exercise PP10 we were asked to identify similar application control.

5) In what previous MM or PP exercise did you create a general ledger reconciliation

account, and what account was created?
In exercise MM01 we created general ledger reconciliation account for accounts payable
account.

6) The following screenshot shows the performance of step #9 of the exercise. Note the
choices in the dropdown list, particularly that of “Assets”.
 Name examples of assets for which it would be reasonable to create a general
ledger reconciliation account. Explain why.

Cash and inventory would be reasonable accounts to create a general ledger

reconciliation account because they can be reconciled based on sales. Also, these
assets are integration of a sub-ledger and the general ledger to ensure proper posting
1) In this exercise, you created three customer records. Note the screenshot below. Assume

that you tried to proceed to without entering all the data noted
through step #16. You would have received the error message shown at the bottom of the
screenshot.

Based on the error message shown, what kind of application control is present on
the Country field? Explain.
The control application used in the Country field is the Completeness check. This application
makes sure that the required data is entered in the Country field before proceeding.
SD02 Questions:
 2) Which of the four common control objectives is most enhanced by this control feature in
this situation? Explain.
The most enhanced transaction-related objective by this is the transaction is recorded accurately.
But depending on the attribute of completeness check it might also help make sure that a particular
transaction is recorded.

3) What kind of control is this control procedure – a preventive or detective control? Explain.
The control procedure is the preventive control. The application control checks that the required data
is entered preventing any kind of errors before recording the transactions.

4) In what previous MM and PP exercises were you asked to identify the same
application control asked in question #1 above?

In exercise MM08, PP02, PP03 and PP08 we were asked to identify the application control asked.
1) In this exercise, you created a goods recipient, or a ship-to-party, for Old Tyme Furniture.
Note the screenshot below. Assume that you tried to enter “Old Tyme Furniture Reg Dist
Center _ _ _ in the Name field. This field entry is slightly different than the one actually
entered per step #6 of this exercise. You would have received the error message shown
at the bottom of the screenshot.

The entry in the field would have to be reduced by at least two characters before
proceeding with the rest of the exercise.
 Based on the error message shown, what kind of application control is present on the Name
field? Explain.
The application control present here is the Size check. The size check application determines the
data being input will fit into the assigned field.

2) Which of the four common control objectives is most enhanced by this control feature in
this situation? Explain.
The control objective most enhanced by the Size check is that a particular transaction is recorded
accurately.

3) What kind of control is this control procedure – a preventive or detective control? Explain.
The control procedure in this case is the preventive control where the application checks the size of
input making sure the correct size of data has been assigned to prevent any kind of errors.

4) In what previous MM and PP exercises were you asked to identify the same
application control asked in question #1 above?

MM04 and PP06 exercises asked us to identify the same application control asked in above
question.
SD04 Questions:

1) In this exercise, you changed the ship-to-party for Old Tyme Furniture to that of Old Tyme
Furniture Reg Dist Cntr. Note the screenshot below, which shows the result of making
that change.

Identify each instance of closed-loop verification on the screenshot above. Explain.

Value of 610 in the customer field
Value of CRSO in the Sales Org field
Value of DI in the Distr. Channel field
Value of ST in the Division field
Value of 610 in the Number Field Row 1
Value of 610 in the Number Field Row 2
Value of 610 in the Number Field Row 3
Value of 610 in the Number Field Row 4
Value of SP in the PF field on row 1
Value of BP in the PF field on row 2
Value of PY in the PF field on row 3
Value of SH in the PF field on row 4
 2) Which of the four common control objectives is most enhanced by closed-loop verification
in this situation? Explain.
Closed-loop verification enhances the objective of recording transaction accurately. The control
application retrieves and displays the related data of the data entered before posting it to the system
ensuring that the data entered is accurate.

3) What kind of control is this control procedure – a preventive or detective control? Explain.

This control procedure is a preventive control, where the application deters any error in the value
entered, blocking user from entering anything but the correct information.

4) In which PP exercises were you asked to identify instances of closed-loop verification

in given screenshots?

In PP01 and PP07 we were asked to identify instances of closed- loop verification.
1) In this exercise, you created both the direct and wholesale sales views for Cushion. Note
the screenshot below, which shows the result of creating the direct sales views before
saving in step #13.

Note that certain data are shown in grey fields. This means that these fields cannot be
edited on this particular screen. One would have to go back to the view in which the data
was initially entered to be able to edit.

In what previous MM and PP exercises did you enter the data in the grey fields? For each
exercise identified, also identify the fields that were populated in that exercise.
 The Material field which shows Cushion_ _ _ was created in MM06 exercise.
Plant parameter was set in Exercise 1 of Chapter 1.
Base of unit measure, Gross weight and Net weight was set in Exercise MM06.
Availability check was set in Exercise PP02.

2) Assume you could edit the Net Weight field. Explain how the following application
controls could be shown to be exist on the Net Weight field:

a) Range check

b) Completeness check

a) Range check: If the value entered in Net Weight field is more than usual the control system
checks the upper limit on a field before posting the value.

b) Completeness check: If value is not entered in the Net Weigh Field the system does not
allow user to proceed. An error message will be displayed to fill all the required fields.

3) In this situation, which of the four common control objectives is most enhanced by a:

a) Range check

b) Completeness check

Explain.

a) Range check: The control objective most enhanced by this control function is a particular
transaction is properly authorized. A range check makes sure the minimum limit on field
is met and whether a special authorization is required. So, assuming all data had been
input properly in this situation, the range check is helping enhance that a particular
transaction is properly authorized because it is making sure that it should occur.

b) Completeness check: This control feature most enhances the objective of recording a
particular transaction accurately. Depending on the attribute a completeness check help
to enhance that a particular transaction is recorded, and/or a transaction is recorded
accurately.
4) In this situation, what kind of control is the:

a) Range check – a preventive or detective control?

b) Completeness check – a preventive or detective control?

Explain.

a) Range check: The control objective most enhanced by this control function is a
particular transaction is properly authorized. A range check makes sure the minimum
limit on field is met and whether a special authorization is required. So, assuming all
data had been input properly in this situation, the range check is helping enhance that
a particular transaction is properly authorized because it is making sure that it should
occur.

b) Completeness check: This control procedure is a preventive control, where the

application deters any incomplete field ensuring that the data is entered in the
required field. The control does not record the data unless the required field is filled,
or value is entered
SD06 Questions:

1) In this exercise, you created both the direct and wholesale sales views for Rocker. Note
the screenshot below, which is right before performing step #4-8 of the exercise for direct,
but AFTER having already created all sales views for wholesale.

Regardless of which order you created your sales views for Rocker (wholesale first and
direct second, or vice versa), when creating the second set of sales views for Rocker, you
should have noticed that you were not required to enter as much data as when creating the
first set of sales views. This is because data from the first set of views were used to populate
certain fields for the second set of views. In fact, only step #5 needed to be performed on the
screen above before proceeding to the next sales view.
 What key feature about SAP reduced the amount of data entry when creating the second
set of sales views?

The control feature of Close- loop verification reduced the amount of data entry when creating the
second set of sales views. Here the application recovers and displays other data that has been
entered before a transaction is recorded or record is updated.

2) In this situation, which of the four common control objectives is most enhanced by the
key feature identified in question #1? Explain.
The control objective most enhanced by the Closed-loop verification is it “A particular transaction is
recorded accurately”. This application ensures that the desired data has been recorded and recovers
data and displays other data related to the data ensuring that the particular transaction is recoded
accurately

3) What kind of control is the key feature identified in question #1 – a preventive or

detective control? Explain.

The control procedure is a preventive control because the control application detects any error in the
value of the transaction before posting or recording it. For example, if the customer number input has
an error the system does not show the details instead shows an error message.
SD07 Questions:

1) In this exercise, you created master records for material prices for customers, in general.
The screen shot below is as of step #9 before saving the data.

Assume when entering the prices in steps #4 and #9 that you tried to enter a dollar sign.
SAP would not have allowed it. If the speakers to your computer were turned on, you would
hear an error sound when trying to type the dollar sign into the field.

What kind of application control is present on the Moving price field? Explain.

The application present on the Moving price field is the Sign check. This application determines if the
data entered has the appropriate sign before the transaction is recorded. Here, the screen is designed
with a field that doesn’t require a dollar sign.

2) Which of the four common control objectives is most enhanced by this control feature in
this situation? Explain.
 The control objective most enhanced by this control feature is “A particular transaction is recorded
accurately” because this control objective is to make sure that the input entered for the field, zip code
is correct.

3) What kind of control is this control procedure – a preventive or detective control? Explain.
The control procedure is the preventive control. The Sign check application deters the size assigned
for the field and blocks user to enter more than the determined size for the field.

4) In what previous PP exercises were you asked to identify the same application control
asked in question #1 above?
In exercise PP08 we were asked to identify the same application control asked in question.

5) What application control and on what field lets the clerk know the unit of currency of the
price ($)?
SD08 Questions:

1) In this exercise, you created master records for material prices specific to a particular
customer. The screen shot below is as of step #9 before saving the data. Assume that
instead of looking up the value for Price on the second line, you typed in the value, based on
what you have seen on the first line and in SD07. Assume also that you misentered the
value as PROO when it should have been PR00. Note the error message at the bottom of
the screen that results.

What kind of application control is present on the Condition type field? Explain.

The application control that is present in this situation is the Validity Check where the control
compares the data entered into a field for either a transaction or master record to that in a field of
another master record to verify the data entered exists

.
2) Which of the four common control objectives is most enhanced by this control feature in
this situation? Explain.
Validity check helps enhance that ‘’A particular transaction is recorded accurately’’. It compares the
data entered into a field for either a transaction or master record that in a field of another master
record to verify the data entered exists.

3) What kind of control is this control procedure – a preventive or detective control? Explain.

The control procedure is the preventive control because the application checks the accuracy of data
entered with master data before recording the transactions in the system, preventing any kind of
future errors

4) In what previous PP exercises were you asked to identify the same application control asked
in question #1 above?

In exercise PP06 and PP07 we were asked to identify the same application control.
SD9 Questions:

1) In this exercise, you created a customer discount record. The screen shot below is as of step
#7 before saving the data. Note the two fields, Scale value and Amount. Both fields
incorporate a field check. What kind of character can it be assumed that will not be
accepted in either field? Identify other similarities between the field checks in each
respective field, as well as differences, based on the screenshot below and exercise
instructions.

Characters like Dollar sign for the amount will not be accepted in either field. The similarities in
these field is it won’t accept any other value type except for the numeric value
SD10 Questions:

1) In this exercise, you created a customer material information record for a customer that uses
a different name for inventory items purchased from you. In a later exercise (SD22), you use
this record to help process an order for the customer.

Which does the use of a customer material information record directly enhance more so –
an organization’s value chain or an organization’s supply chain? Explain.
SD11 Questions:

1) In this exercise, you created a standard item proposal that can be used to help create
sales orders for customers that may make purchases similar to that in the proposal. The
screenshot below was taken after performing step #9 but before saving the data. Note the
error message. The date on which this proposal occurred was July 7, 2011. However, the
date of July 6, 2011 was entered. After entering the correct date, the data can be saved.

Based on the error message shown, what kind of application control is present on Valid-
from date field? Explain.

The application control present in this situation is Reasonableness Check that tests the
logic of relationship between two or more data. The control ensures that the data entered
is accurate and is related to the transactions before recording it. Here, the system relies
on the logic that the start date must not be later than finish date.
 SD11 Questions:

2) Which of the four common control objectives is most enhanced by this control feature in this
situation? Explain.

This control feature help enhance that the master record is recorded accurately and therefore related
transactions blocking users to save and record data before correction.

3) What kind of control is this control procedure – a preventive or detective control? Explain.

This control procedure is a preventive control because it determines the error before it has been
entered to help enhance the accuracy of the record.
.
1) In this exercise, you assigned the item proposal created to a customer. When the
customer places an order, the item proposal can be used to help create the sales order.
Note the screenshot below, which was taken when trying to save the data from this
exercise. Note the error message at the bottom of the screen that results. Upon closer
inspection, the Item proposal value is missing a zero before the last digit of two. After
correction, the data could be saved.

What kind of application control is present on the Item proposal field? Explain.
Validity check is present on the item proposal field. Validity check compares the data entered into
a field to that of another master record to verify that the data entered exists. In the above situation
Proposal number was incorrect so, the system didn’t allow user to continue.
 2) Which of the four common control objectives is most enhanced by this control feature in
this situation? Explain.

This transaction enhances the objective of recording the transaction accurately. If there is any error
on the value entered the SAP provides an error message about the value entered thus enhancing
the accuracy in the record of a particular data.

3) What kind of control is this control procedure – a preventive or detective control? Explain.
The control procedure is the preventive control because the application checks the accuracy of data
entered with master data before recording the transactions in the system, preventing any kind of
future errors.

4) In terms of database terminology, what kind of attribute is the item proposal number in
the Customer table? Explain, including how the kind of attribute provides integration of
item proposal data with customer data when an item proposal is assigned to a customer.
 SD14 Questions:

1) In this exercise, you created a customer inquiry for a potential order of Cushion and Rocker.
In step #8, you entered the customer’s purchase order number.

Please recognize that a customer may not actually have a formal purchase order at the time
of inquiring about purchasing certain items. The customer may simply be gathering
information about a potential purchase. For this reason, no entry is required on the
purchase order number field but it would be good to ask the customer if they have one so
that it could be entered at the time of inquiry.

Although the customer may not have a purchase order at the time of inquiry, the
customer should when a vendor processes a sales order (see SD14).

Which of the four common transaction-related internal control objectives is most enhanced
by entering the customer’s purchase order number at the time of an inquiry and/or sales
order? Explain.
If the sales order is created with reference to a preceding document such as an inquiry, the initial data
are copied into the sales order, thereby enhancing the accuracy of data in the sales order. If created
independently (for example, no previous inquiry), the sales order is typically created by reference to
data on the customer’s purchase order, which again authorizes the activity of the vendor.

2) What kind of control is the entry of the purchase order number for an inquiry or sales order
– a preventive or detective control? Explain.
The control procedure is a preventive control ensuring that the accurate data is entered before
proceeding.

3) In terms of database terminology, what kind of attribute is the purchase order number on
an inquiry document? Explain.

4) Besides this exercise and SD14, in which other SD exercises do you record the
purchase order number of the customer?
1) In this exercise, you created a sales order based on a customer inquiry created in SD13.
In step #13, you changed the quantity of Rocker from 150 to 175. Assume that instead you
changed the quantity to 1750. The following screenshot shows the result that would have
occurred.

SAP provides two options to choose from (see the two respective checkmarks in the
screenshot that can be chosen from):

i. Delay delivery until a later date when the entire order of 1,750 units can be fulfilled
at one time after automatically running MRP to produce 1,470.

ii. Deliver 280 units now and automatically run the production of 1,470 units to
be delivered to the customer at a later date (i.e., a backorder).
 As a reminder, the safety stock for Rocker is 20 units (see PP03 for exercise doing so). You
produced 300 units in PP, so that is why 280 units is identified as the amount that can be
delivered now, and why another 1,470 units need to be produced to complete this order.

Assuming that the customer really wanted 1,750 rockers, what transaction-related control
objective is most enhanced by comparing the sales order quantities to the inventory
quantities on hand? Explain.

When comparing sales order to the inventory quantities on hand, limit check application is present in
this transaction. A particular transaction is properly authorized objective of transaction-related internal
control is most enhanced in this situation. If an error of tolerance limit is detected the system does not
input the data hence asking user to verify the amount before recording in the system thus, enhancing
the accuracy of the data.

2) Describe the threat that is reduced by comparing inventory quantities on the sales order
to inventory available in stock.

One of the threats reduced is a threat of losing existing customers. When sales ordered is
compared to available inventory company is making sure that the inventory desired by the
customer can be provided, and in what timeframe. It also seeks to reduce the threat of inventory
stockouts or shortages by providing the ability to immediately schedule production to meet
customer needs

3) Assuming that the customer really wanted only 175 rockers, what transaction-related
control objective is most enhanced by comparing the sales order quantities to the inventory
quantities on hand? Explain.
Comparison of sales order to inventory enhance the transaction-related control objective that a
particular transaction is properly authorized. This is because the comparison is making sure that the
inventory desired by the customer can be provided, and in what timeframe.
4)
5) What kind of control is the comparison of the sales order quantities to the inventory
quantities on hand – a preventive or detective control? Explain.
Assuming the data entered for the order is accurate, this inventory and delivery check is a
preventive control
SD15 Questions:

1) In this exercise, you checked the stock status of one of your materials from the sales
order created in SD14. Based on the partial screenshot shown below, explain how both a
validity check and closed-loop verification are present on both the Material and Unit of
Measure fields, giving examples.

Validity check makes sure that the Material number is compared to verify that the material number
exists. The closed loop verification is present in this field because the look up button displays all
the related data for the material field.

In unit of measure the system automatically pulls the data for this based on the earlier data
entered for Rocker998 Material’s unit of measure. This control feature is the closed loop
verification. The validity check here makes sure that the data entered exists. If a different of
measure was entered, an error would occur.

2) In this situation, what transaction-related control objective is most enhanced by a

validity check? Closed-loop verification? Explain.
Validity check enhance that a particular transaction is recorded accurately. This application
compares the data entered into a field for either a transaction or master record to verify the data
entered exists.

3) What kind of control is the validity check in this situation – a preventive or detective control?
What kind of control is closed-loop verification in this situation– a preventive or detective
control? Explain.

Both of these controls are preventive controls because the application checks the accuracy of
data entered with master data before recording the transactions in the system, preventing any
kind of future errors.
SD16 Questions:

1) In this exercise (see steps #3 and #4), data from the sales order is used to create the data
for the outbound delivery document. This capability is due to the integration and sharing of
data in SAP.

What transaction-related internal control objective is most enhanced by the integration in

SAP that allows the use of data from the sales order to create the data for the outbound
delivery document? Explain.

The objective of recording transaction accurately is more enhanced by the integration in SAP. The
data created for the outbound delivery document is based on the data from the sales order.
A sales order would contain transaction data that have resulted from a customer placing an order to
purchase a product from the company. The integration of data hence ensures that the data are
retrieved and are recorded accurately
SD17 Questions:

1) In this exercise, you entered picked quantities equal to the delivery quantities for the
outbound delivery. Note the screenshot below. Instead of entering 175 as the picked
quantity, assume you entered 176. Note the error message that would have resulted.

Further, know that you can enter a picked quantity that is less than the delivery quantity, but
not less than zero. Entering a negative number will result in an error message stating that the
field does not accept the negative sign.

Based on all the information provided, what application control is present on the Picked
Qty field? Explain.

The control that is present here is the Reasonableness Test. This application determines the
correctness or logic of a relationship between two or more data items before a transaction is recorded.
Here, the system relies on the logic that picked quantity cannot be greater than the deliver quantity.
2) In this situation, what transaction-related control objective is most enhanced by
the application control that is present? Explain.

The transaction-related control objective most enhanced by this control is the “A particular transaction
recorded accurately.” The application relies on the logic of relationship between two data which in this
situation is picked quantity and deliver quantity. If the value entered is not correct as per the
relationship the system assumes there is an error and thus the test helps enhance that the data is
accurate.

3) What kind of control is the application control that is present in this situation – a preventive
or detective control? Explain.

This control procedure is a preventive control because it determines the error before it has been
entered to help enhance the accuracy of the record.
SD18 Questions:

1) In this exercise, you posted an issuance of goods to reflect the inventory that has been
shipped. Note the screenshot below. It is an outbound delivery document for the goods that
were issued. A copy of this document could be printed and included with the shipment, acting
as the packing slip.

If acting as the packing slip accompanying the items shipped, what data item should be
included on the document for helping the customer process the shipment receipt? Explain,
also making reference to the transaction-related control objective that is most enhanced for
the customer by the inclusion of the missing data item on the packing slip.

If this document was used as a packing slip, the Customer Purchase Order Number would need to
be included in the document. The transaction-related control objectives adding the PO number would
enhance are a particular transaction is properly authorized.
SD18 Questions:
 SD19 Questions:

1) In this exercise, you billed the customer for the shipment recorded in SD18. Note the
screenshot below. The outbound delivery document number from SD18 is
automatically shown in the Document field.

Which transaction-related control objective is most enhanced by SAP automatically

showing the outbound delivery document number in the document field on the Create
Billing Document screen? Explain.

The application present in this screen is the Closed- loop verification where the application
recovers and displays other data that has been entered before a transaction is recorded or record
is updated.

2) In this situation, what kind of control is the automatic showing of the outbound
delivery document number in the document field – a preventive or detective control?
Explain.

The control procedure is a preventive control because the control application detects any error in the
value of the transaction before posting or recording it. For example, if the customer number input has
an error the system does not show the details instead shows an error message.
 SD20 Questions:

1) In this exercise, you looked at the document flow from the customer inquiry to billing.
Carefully study your screenshot from the exercise. Explain how looking at the document
flow screen helps enhance each of the following transaction-related control objectives:

a. All transactions are properly authorized

b. All recorded transactions are valid

c. All valid, authorized transactions are recorded

The document flow shows how far the sales document has been processed and creates a business
transaction out of consecutive documents in the system. For example, a document flow could contain
an inquiry, a sales order, delivery, the good issue, the invoice, and the accounting document for the
journal entry to record the sale. The document flow indicates the number of each document, the date
initiated or completed, and the current processing status of the particular processing step.The
document flow can be used to access the original document created in the system when each of the
steps in the sales processing took.

In this manner, the document flow forms an “audit trail” that can be used to examine the supporting
documents for a given transaction. The integration of data within and across processes of the value
chain, as well as the automatic posting/updating of documents and records, shows the strong audit
trail of activities within SAP.
1) In this exercise, you created a sales order based on an item proposal for a specific customer.
In which exercise did you create the item proposal?

Item proposal was created in Exercise SD11

2) Note the screenshot below. The Item Proposal document number is automatically shown in
the Sales Document field of the pop-up screen. Do note that the field can be edited,
selecting a different Item Proposal that may exist.

Which transaction-related control objective is most enhanced by SAP automatically showing

the Item Proposal document number assigned to this customer in the Sales Document field
on the pop-up screen? Explain.

This feature of SAP is called the closed- loop verification where application recovers and
displays other related data of the data entered. The control objective most enhanced by the
Closed-loop verification is it “A particular transaction is recorded accurately”. This application
ensures that the desired data has been recorded and recovers data and displays other data
related to the data ensuring that the particular transaction is recoded accurately.
3) What kind of control is the automatic showing of the Item Proposal document number in
the sales document field – a preventive or detective control? Explain.

The control procedure is a preventive control because the control application detects any
error in the value of the transaction before posting or recording it. For instance, if the
Proposal document number is not correct system does not show the details instead shows
an error message.

4) In step #16 of the exercise, you viewed the discount being taken by the customer based on
the size of the order. In which exercise did you create the discount? The customer received
a 10% discount on the order. What must the size of the order be to only receive a $500
discount?

In Exercise SD09 Customer Discount was created.

1) In this exercise, you created a sales order using a customer material information
record created earlier in this tutorial. In which exercise did you create the customer
material information record?

In exercise SD10 customer material information was created.

2) You created sales orders in exercises SD14, SD21 and SD22. In SD14 and SD21, you
were instructed to look at the availability of materials being ordered. Although you were
not directly told to in SD22, know that SAP automatically checks the availability, and
would notify you if there was not sufficient materials for the sales order.

Checking material availability is one of two important checks during the sales order
process. What other check should be made during the sales order process? Explain why,
including the application control that could be implemented for such a check.

You should check the customer’s credit limit during the sales order process because what
they are trying to order may exceed what they actually have available.

3) What transaction-related control objective is most enhanced by this other check? Explain.
Based on the above situation this control feature most enhances a particular transaction is
properly authorized objective of transaction-related internal control. If an error of tolerance
limit is detected the system does not input the data hence asking user to verify the amount
before recording in the system thus, enhancing the accuracy of the data.

4) What kind of control is this other check – a preventive or detective control? Explain.
The control procedure in this case is the preventive control where the application checks
the tolerance limit against an upper or lower predetermined value before the transaction is
posted or recorded
SD22 Questions:

5) Chapter 1 for this tutorial discusses “Roles and Profiles”. This discussion emphasizes the
need for proper separation of duties within organizations for reducing the threat of errors and
fraud.

Please recognize that in this tutorial, you have access to more areas than a typical
employee would (or should) have in an actual business. For training purposes using this
tutorial, students are allowed to perform all transaction related roles in the entire SAP
system. This greater access across functional areas allows students to gain practical insight
and appreciation into the interrelationships of an organization and its ERP system, such as
SAP.

Review the SD exercises. Identify pairs of exercises (with reference to the exercise
numbers) that are incompatible in a real business setting. Explain why.

1) SD02 and SD12; the person in control of keeping the master customer files up-to-date
should not be the one to assign item proposal to customers
2) SD16 and SD17; the employee who is in charge of creating a delivery slip should not be
allowed to pick the materials on the delivery note.
3) SD16 and SD19; the employee who creates a delivery slip should not be the one for billing
the customer
4) SD 17 and SD19; the employee who is picking the materials should not be the one to
invoice the client

Segregation of duties is required to prevent any kind of errors or fraud from the personnel or
employees working