(Check Protection) Computers are frequently employed in check-writing systems, such as payroll and accounts payable applications. There are many strange stories about weekly paychecks being printed (by mistake) for amounts in excess of \(\$ 1\) million. Incorrect amounts are printed by computerized check- writing systems because of human error or machine failure. Systems designers build controls into their systems to prevent such erroneous checks from being issued. Another serious problem is the intentional alteration of a check amount by someone who plans to cash a check fraudulently. To prevent a dollar amount from being altered, some computerized check-writing systems employ a technique called check protection. Checks designed for imprinting by computer contain a fixed number of spaces in which the computer may print an amount. Suppose a paycheck contains eight blank spaces in which the computer is supposed to print the amount of a weckly paycheck. If the amount is large, then all eight of the spaces will be filled. For example, \(1,230.60(\text { check amount })\) 12345678 (position numbers) On the other hand, if the amount is less than \(\$ 1000\), then several of the spaces would ordinarily be left blank. For example, $$\begin{array}{r}99.87 \\\12345678\end{array}$$ contains three blank spaces. If a check is printed with blank spaces, it's easier for someone to alter the amount. To prevent alteration, many check- writing systems insert leading asterisks to protect the amount as follows: ***99.87 \-------- 12345678 Write an application that inputs a dollar amount to be printed on a check, then prints the amount in check-protected format with leading asterisks if necessary. Assume that nine spaces are available for printing the amount.

Step by step solution

01

Understand the Exercise

The exercise requires creating a check protection system for printing amounts on checks. The system must add leading asterisks to any amount less than $1000 that would otherwise leave blank spaces on the check. We should consider that there are eight available spaces to print the amount.

02

Input the Dollar Amount

Request an input from the user for the dollar amount that needs to be printed on the check. This amount should be stored in a variable for further processing.

03

Determine the Number of Leading Asterisks

Calculate how many characters the dollar amount occupies, including the dot and decimal places. Subtract this count from eight (the total available spaces) to find the number of asterisks needed.

04

Construct the Protected Check Amount

Create a string that consists of the calculated number of leading asterisks followed by the dollar amount. The combined length of the asterisks and the amount should be equal to eight characters.

05

Output the Check-Protected Amount

Display or print the check-protected amount with leading asterisks to the user or the check printing system.

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Key Concepts

These are the key concepts you need to understand to accurately answer the question.

Computerized Check-Writing

The rise of technology has led to the advent of computerized check-writing, which streamlines the process of creating and issuing checks. This innovative approach replaces traditional handwritten checks, shifting to a system where amounts are printed digitally.

In the context of payroll and accounts payable, computerized check-writing ensures that employees and vendors receive accurate payments in a timely manner. Software receives data inputs, like the dollar amounts for paychecks, calculates deductions or additions if needed, and then prints the final amount on the check. One key advantage is the reduction of human error, as the checks are now less prone to mistakes made during manual entry. Each check is printed with precise alignment and formatting, which not only presents a professional appearance but also enhances the readability of the financial information.

Check Fraud Prevention

Check fraud is a significant concern in financial transactions, with individuals attempting to alter the printed amount on checks to illegally increase the value. Preventing such fraudulent activities is critical for maintaining trust and security within financial systems.

Check protection is a powerful feature of computerized check-writing systems designed to safeguard against this type of fraud. For example, if a printed check has extra spaces because the amount is smaller than the space allows, those spaces are filled with asterisks or other characters to prevent someone from adding digits. This method makes it extremely challenging for someone to manipulate the printed amount without it being immediately obvious. A check might be issued with proper protection like so:

***99.87

where the asterisks indicate protected spaces, preventing any unauthorized alterations to the check amount.

Printing Check Amounts

When printing amounts on checks, it's not just about inputting the numbers. Care must be taken to correctly format and protect the printed amounts. Computerized systems are developed to handle varying check amounts with different space requirements.

For amounts less than \(1000, checks designed with a fixed number of spaces will likely have blank areas. These need to be filled, typically with asterisks or other characters, to prevent tampering. When a check amount like \)1230.60 needs to be printed, all available spaces are filled so no additional protection is necessary. However, smaller amounts, such as $99.87, would usually leave blank spaces. The software automatically resolves this by inserting leading characters to ensure the amount is secure from alteration, thus maintaining the integrity of the transaction.

Software Controls for Financial Systems

Software controls are the backbone of secure financial systems, particularly when dealing with sensitive operations like check writing. These controls include a series of checks and balances programmed to ensure the accuracy and authenticity of financial transactions.

In a check-writing application, software controls analyze the input dollar amount and apply rules, such as adding leading asterisks to protect the amount. Moreover, there are controls to handle exceptions, detect possible errors, and prevent the processing of checks that do not meet the predetermined criteria. This can include checks for the right number format, valid account details, and alignment with financial policies. Implementing stringent software controls is essential to maintain the reliability and security of financial systems, thus safeguarding against both unintentional errors and deliberate fraud attempts.