You have been assigned to the audit of Mid-State Electronics Corporation, a medium-size distributor.

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You have been assigned to the audit of Mid-State Electronics Corporation, a medium-size distributor of electronics equipment serving a geographic area within a radius of 150 miles. Mid-State has installed a client-server computer and provides remote access to its sales people on the road. Salespeople can enter sales orders via remote dial-in at any time. This expedites the order taking and delivery of goods. The client uses computerized processing for inventory control and accounting functions, such as billing, sales, accounts receivable, inventory, and payroll. All of the software has been purchased from a major software vendor and has not been modified for Mid-State. The software has the ability to implement password controls. During the audit planning process, the auditor has identified the accounting applications as important. The partner has asked you to assess control risk in the computer environment and expects you to recommend the type of substantive testing that might be required. Required a. Develop a control questionnaire that might be used to capture information about general controls and application controls in the computer environment at Mid-State Electronics. b. What is the relationship between general and application controls? Why is it important that the auditor begin the computer control evaluation with the general controls? c. What are the implications of weaknesses in general controls? For example, assume there is not adequate segregation between da

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