Applied Business Research
ACAMS Practice Questions
Accounting Cycle and Classifying Accounts
Accounting For Managers
Accounting for Merchandising Activities
Accounting for Pensions
Accounting Information Systems
Activity Based Costing
Adjusting Accounts for Financial Statements
Advanced Business Economics
Advertising and Public Relations
Advertising and Sales Promotion
An Overview of International Business
Analysis and Forecasting Techniques
Analyzing and Recording Transactions
Asset Demand and Supply under Uncertainty
Auditing and Attestation
Behavioral and Allied Sciences
Bonds and Long Term Notes Payable
Business Analytics & Technology Management Chapter 2
Business Analytics & Technology Management Chapter 3
Business Analytics & Technology Management Chapter 4
Business Analytics & Technology Management Chapter 5
Business Analytics & Technology Management Chapter 6
Business and Company Law
Business Ethics and Governance
Business Ethics Exam
Business Law Study guide
Business Organisations and Environment
Business organization and systems
Business Process Performance
California Real Estate
Capital Budgeting and Managerial Decisions
Changes in Accounting Principles
Changing Marketing Environment
Consolidated Financial Statements
Corporate and Business Law
Cost Accounting Final exam
Cost Accumulation Systems
Cost Allocation Techniques
Cost and Managerial Accounting
Cost of Capital
Cost Terms and Classifications
Cost Volume Profit Analysis
Currency Exchange Rates
Customer Relationships and Value
CVP Analysis and Marginal Analysis
Debt and Bankruptcy
Decision Makers Household Sector
Demand for Money
Derivative Instruments and Hedging Activities
Dividends, Shares, and Income
Elasticities of Demand and supply
Employee Training and Development
Environments of Business
Essence of Management
Ethical and Professional Standards
Ethics and Social Responsibility
Ethics for Management Accountants
External Financial Statements and Revenue Recognition
Federal Securities Acts
Financial and the Nonfinancial Sectors
Financial Decision Making
Financial Intermediaries and Financial Markets
Financial Markets and Securities Offerings
Financial Statements and Accounting Transactions
Flexible Budgets and Standard Costs
Florida Real Estate MCQs
Fraud Internal Control and Cash
Fundamental Accounting Principles
Global Marketing and World Trade
Governmental Accounting State and Local
Health and Life Comprehensive Exam
Health and Life Practice Questions
Human Resource Management
Human Resource Management HRM
Human Resource Planning
Importance of Business Economics
Insurance and Risk Management
Insurance License Texas Life and Health
Integrated Marketing Communications and Direct Marketing
Interactive Marketing and Electronic Commerce
Internal Auditing and Systems Controls
Internal Control and Cash
International Trade and Globalisation
Interpersonal and Organizational Communication
Introduction to Business
Introduction to Human Resource Management
Introduction to Human Resources Assessment
Investment Risk and Portfolio Management
Job Order Costing
Life and Health Insurance
Life Insurance Basics
Life Insurance Policies
Life Insurance Policy
Long Term Investment
Long Term Securities
Management and Cost Accounting
Managerial Accounting Concepts and Principles
Managing Organizational Change
Managing Production and Operations
Managing Products and Brands
Market Segmentation Targeting and Positioning
Marketing and Corporate Strategies
Marketing Channels and Wholesaling
Master Budgets and Planning
Mergers and Acquisitions
Money and Banking
National Health Insurance
Not For Profit Accounting
Organization and Operation of Corporations
Organizational Behavior Essentials
Organizational Markets and Buyer Behaviour
Organizational Structure and Design
Personal Selling and Sales Management
Principles and Practices of Management
Production and Operations Management
Profitability Analysis and Analytical Issues
Profitability Analysis and Decentralization
Property Plant and Equipment
Property Plant and Equipment Exam
Reporting and Analyzing Cash Flows
Reporting and Analyzing Long Lived Assets
Reporting and Analyzing Receivables
Responsibility Accounting and Performance Measures
Risk and Procedures for Control
Service Department Costing
Short Term Financing
Short Term Investment
Standard Costs and Variance Analysis
State Health Insurance
Statement of Cash Flow
Statement of Comprehensive Income
Statement of Financial Position
Stock Market and Stock Prices
Strategic Marketing Process
Structure of Interest Rates
Succession and Transfer Taxes
Supply Chain and Logistics Management
System Analysis and Design
Texas Real Estate
The Management Challenge
Total Quality Management
Understanding Exchange Rates
Understanding Interest Rates
Understanding Interest Rates Determinants
Value Added Tax
Internal Auditing and Systems Controls
Internal Auditing and Systems Controls MCQs
From a modern internal auditing perspective, which one of the following statements represents the most important benefit of an internal auditing acti...
Assurance that published financial statements are correct.
Assurance that fraudulent activities will be detected.
Assurance that the organization is complying with legal requirements.
Assurance that there is reasonable control over day-to-day operations.
The proper organizational role of internal auditing is to
Assist the external auditor in order to reduce external audit fees.
Perform studies to assist in the attainment of more efficient operations.
Serve as the investigative arm of the board.
Serve as an independent, objective assurance and consulting activity that adds value to operations.
Internal auditing is an assurance and consulting activity. An example of an assurance service is a(n)
A charter is one of the more important factors positively affecting the internal audit activity’s independence. Which of the following is least like...
Access to records within the organization.
The scope of internal audit activities
The length of tenure of the chief audit executive.
Access to personnel within the organization.
The purpose of the internal audit activity’s evaluation of the effectiveness of existing risk management processes is to determine that
Management has planned and designed so as to provide reasonable assurance of achieving objectives and goals.
Management directs processes so as to provide reasonable assurance of achieving objectives and goals.
The organization’s objectives and goals will be achieved efficiently and economically.
The organization’s objectives and goals will be achieved in an accurate and timely manner and with minimal use of resources.
Internal auditing is a dynamic profession. Which of the following best describes the scope of internal auditing as it has developed to date?
Internal auditing involves evaluating the effectiveness and efficiency with which resources are employed.
Internal auditing involves evaluating compliance with laws, regulations, and contracts
Internal auditing has evolved to verifying the existence of assets and reviewing the means of safeguarding assets.
Internal auditing has evolved to evaluating all risk management, control, and governance systems.
The authority of the internal audit activity is limited to that granted by
The board and the controller.
Senior management and the Standards.
Management and the board.
The audit committee and the chief financial officer.
Which of the following activities is outside the scope of internal auditing?
Assessing an operating department’s effectiveness in achieving stated organizational goals
Safeguarding of assets.
Evaluating controls over compliance with laws and regulations.
ascertaining the extent to which objectives and goals have been established.
Directors, management, external auditors, and internal auditors all play important roles in creating proper control processes. Senior management is pr...
Overseeing the establishment, administration, and assessment of control processes.
Reviewing the reliability and integrity of financial and operational information.
Ensuring that external and internal auditors oversee the administration of the system of risk management and control processes.
Implementing and monitoring controls designed by the board of directors.
The chief audit executive’s responsibility for assessing and reporting on control processes includes
Communicating to senior management and the board an annual judgment about internal control.
Overseeing the establishment of internal control processes.
Implementing the organization’s governance processes.
Arriving at a single assessment based solely on the work of the internal audit activity.
An internal auditor fails to discover an employee fraud during an assurance engagement. The non discovery is likely to suggest a violation of internal...
Failure to perform a detailed review of all transactions in the area.
Determination that any possible fraud in the area would not involve a material amount.
Determination that the cost of extending procedures in the area would exceed the potential benefits.
Presumption that the internal controls in the area were adequate and effective.
Of the following, the primary objective of compliance testing is to determine whether
Procedures are regularly updated
Financial statement line items are properly stated.
Controls are functioning as planned.
Collusion is taking place.
Which of the following is most likely to be regarded as a strength in internal control in a traditional external audit?
The performance of financial audits by the internal audit activity.
The performance of operational engagements by internal auditors.
The routine supervisory review of production planning
The existence of a preventive maintenance program.
In evaluating the effectiveness and efficiency with which resources are employed, an internal auditor is responsible for
Determining the extent to which adequate operating criteria have been established.
Verifying the existence of assets.
Reviewing the reliability of operating information.
Verifying the accuracy of asset valuation.
Which of the following best describes the internal audit activity’s purpose in evaluating the adequacy of risk management, control, and governance p...
To help determine the nature, timing, and extent of tests necessary to achieve engagement objectives.
To ensure that material weaknesses in internal control are corrected.
To determine whether the risk management, control, and governance processes provide reasonable assurance that the organization’s objectives and goals are achieved efficiently and economically.
To determine whether the risk management, control, and governance processes ensure that the accounting records are correct and that financial statements are fairly stated.
The status of the internal audit activity should be free from the effects of irresponsible policy changes by management. The most effective way to ens...
Have the internal audit charter approved by the board.
Adopt policies for the functioning of the internal audit activity.
Establish an audit committee within the board
Develop written policies and procedures to serve as standards of performance for the internal audit activity.
Independence is most likely impaired by an internal auditor’s
Continuation on an engagement at a division for which (s)he will soon be responsible as the result of a promotion.
Reduction of the scope of an engagement due to budget restrictions.
Participation on a task force that recommends standards for control of a new distribution system.
Review of a purchasing agent’s contract drafts prior to their execution.
Which of the following activities is not presumed to impair the objectivity of an internal auditor? I. Recommending standards of control for a new inf...
I and III.
A certified internal auditor is the chief audit executive for a large city and is planning the engagement work schedule for the next year. The city h...
Economy and efficiency.
Senior management has requested a compliance audit of the organization’s employee benefits package. Which of the following is considered the primary...
The level of organizational contributions is adequate to meet the program’s demands.
Individual programs are operating in accordance with contractual requirements and government regulations.
Participation levels support continuation of individual programs.
Benefit payments, when appropriate, are accurate and timely.
Which of the following is most likely to be an element of an effective regulatory compliance program?
The internal audit activity should be assigned overall responsibility for overseeing the program.
The program is communicated to employees in a video format on a one-time basis.
The organization should use monitoring and auditing systems reasonably designed to detect criminal conduct.
The organization should obtain as much information as possible when performing background checks on employees.
Which of the following is not a true statement about the relationship between internal auditors and external auditors?
Oversight of the work of external auditors is the responsibility of the chief audit executive.
Sufficient meetings should be scheduled between internal and external auditors to ensure timely and efficient completion of the work.
Internal and external auditors may exchange engagement communications and management letters.
Internal auditors may provide engagement work programs and working papers to external auditors
In recent years, which two factors have changed the relationship between internal auditors and external auditors so that internal auditors are partner...
The increasing liability of external auditors and the increasing professionalism of internal auditors.
The increasing professionalism of internal auditors and the evolving economics of external auditing.
The use of computerized accounting systems and the evolving economics of external auditing.
The globalization of audit entities and the increased reliance on computerized accounting systems.
To improve their efficiency, internal auditors may rely upon the work of external auditors if it is
Performed after the internal auditing work.
Primarily concerned with operational objectives and activities.
Coordinated with internal auditing work.
Conducted in accordance with the Code of Ethics.
Internal auditors may provide consulting services that add value and improve an organization’s operations. The performance of these services
Impairs internal auditors’ objectivity with respect to an assurance service involving the same engagement client.
Precludes generation of assurance from a consulting engagement
Should be consistent with the internal audit activity’s empowerment reflected in the charter.
Imposes no responsibility to communicate information other than to the engagement client.
Which of the following statements is true?
Consulting services may enhance the auditor’s understanding of business processes or issues related to an assurance engagement but will always impair the auditor’s or the internal audit activity’s objectivity.
Management should empower the internal audit activity to perform additional services if they do not represent a conflict of interest or detract from its obligations to the committee.
An organization should not allow the internal audit activity to perform formal consulting tasks because this would impair their objectivity.
Much of consulting is a natural extension of assurance and investigative services and may represent informal or formal advice, analysis, or assessments.
Which type of engagement focuses on operations and how effectively and efficiently the organizational units affected will cooperate?
Which type of engagement attempts to measure the accomplishment and relative success of the undertaking?
Which of the following issues need not be addressed by internal auditors when performing a privacy engagement?
Compliance with governmental statutory and regulatory mandates.
Documentation of compliance with privacy and other legal requirements.
Whether the benefits of the security arrangements exceed the costs.
The ethical imperative for management to gather accurate private information.
Which method of evaluating internal controls during the preliminary review provides the auditor with the best visual grasp of a system and a means for...
A flowcharting approach
A questionnaire approach.
A matrix approach.
A detailed narrative approach.
The personnel department receives an edit listing of payroll changes processed at every payroll cycle. If it does not verify the changes processed, th...
Undetected errors in payroll rates for new employees.
Inaccurate Social Security deductions.
Labor hours charged to the wrong account in the cost reporting system.
Employees not being asked if they want to contribute to the company pension plan.
An internal auditor would trace copies of sales invoices to shipping documents in order to determine that
Customer shipments were billed.
Sales that are billed were also shipped.
Shipments to customers were also recorded as receivables.
The subsidiary accounts receivable ledger was updated.
After noting some red flags, an internal auditor has an increased awareness that fraud may be present. Which of the following best describes the inter...
Expand activities to determine whether an investigation is warranted.
Report the possibility of fraud to senior management and the board and ask them how they would like to proceed.
Consult with external legal counsel to determine the course of action to be taken, including the approval of the proposed engagement work program to make sure it is acceptable on legal grounds.
Report the matter to the audit committee and request funding for outside service providers to help investigate the possible fraud.
An internal auditor discovered an error in a receivable due from a major stockholder. The receivable’s balance accounts for less than 1% of the comp...
Yes, if audit risk is low.
No, if there will be further transactions with this stockholder.
Yes, because a related party is involved.
No, because a small dollar amount is in error.
In the performance of an internal audit, audit risk is best defined as the risk that an auditor
Might not select documents that are in error as part of the examination.
May not be able to properly evaluate an activity because of its poor internal accounting controls
May fail to detect a significant error or weakness during an examination.
May not have the expertise to adequately audit a specific activity.
Which of the following statements is(are) correct regarding the deterrence of fraud? I. The primary means of deterring fraud is through an effective c...
I and II only.
I, II, and III.
An internal auditor who suspects fraud should
Determine that a loss has been incurred.
Interview those who have been involved in the control of assets.
Identify the employees who could be implicated in the case.
Recommend whatever investigation is considered necessary under the circumstances.
During an engagement to review payments under a construction contract with a local firm, the internal auditor found a recurring monthly reimbursement ...
Inform the chief audit executive.
Call the engineer into a private meeting to confront the situation.
Complete the engagement as scheduled, noting the recurring reimbursement in the working papers.
Wait until the engineer is surrounded by plenty of witnesses and then inquire about the payments.
The chief audit executive uncovers a significant fraudulent activity that appears to involve the executive vice president to whom the CAE reports. Whi...
Conduct an investigation to ascertain whether the executive vice president is involved in the fraudulent activity
Interview the executive vice president to obtain essential evidence
Notify regulatory authorities and police.
Report the facts to the chief executive officer and the audit committee.
Which of the following policies is most likely to result in an environment conducive to the occurrence of fraud?
The divisionâ€™s hiring process frequently results in the rejection of trained applicants.
Budget preparation input by the employees who are responsible for meeting the budget.
The application of some accounting controls on a sample basis.
Unreasonable sales and production goals.
Internal auditors are responsible for reporting fraud to senior management and the board when
The incidence of significant fraud has been established to a reasonable certainty.
Suspicious activities have been reported to the internal auditors.
Irregular transactions have been identified and are under investigation.
The review of all suspected fraud-related transactions is complete.
An internal auditor is interviewing three individuals, one of whom is suspected of committing a fraud. Which of the following is the least effective i...
Ask each individual to prepare a written statement explaining his or her actions.
Take the role of one seeking the truth.
Listen carefully to what the interviewee has to say.
Attempt to get the suspect to confess.
The objectives of a functional audit could involve evaluating the company’s
Employee educational benefits program.
The primary difference between operational engagements and financial engagements is that, in the former, the internal auditors
Are not concerned with whether the client entity is generating information in compliance with financial accounting standards.
Are seeking to help management use resources in the most effective manner possible.
Start with the financial statements of the client entity and work backward to the basic processes involved in producing them.
Can use analytical skills and tools that are not necessary in financial engagements.
The chief executive officer wants to know whether the purchasing function is properly meeting its charge to “purchase the right materials at the rig...
A financial engagement relating to the purchasing department.
An operational engagement relating to the purchasing function
A compliance engagement relating to the purchasing function.
A full-scope engagement relating to the manufacturing operation.
During an operational engagement, the internal auditors compare the current staffing of a department with established industry standards to
Identify bogus employees on the department’s payroll.
Assess the current performance of the department and make appropriate recommendations for improvement.
Evaluate the adequacy of the established internal controls for the department.
Determine whether the department has complied with all laws and regulations governing its personnel.
An operational engagement relating to the production function includes a procedure to compare actual costs with standard costs. The purpose of this en...
Determine the accuracy of the system used to record actual costs.
Measure the effectiveness of the standard cost system.
Assess the reasonableness of standard costs
Assist management in its evaluation of effectiveness and efficiency.
A determination of cost saving is most likely to be an objective of a(n)
During an operational audit, an auditor compares the inventory turnover rate of a subsidiary with established industry standards in order to
Evaluate the accuracy of the subsidiary’s internal financial reports.
Test the subsidiary’s controls designed to safeguard assets.
Determine if the subsidiary is complying with corporate procedures regarding inventory levels
Assess the performance of the subsidiary and indicate where additional audit work may be needed.
An operational audit report that deals with the scrap disposal function in a manufacturing company should address
The efficiency and effectiveness of the scrap disposal function and include any findings requiring corrective action.
Whether the scrap material inventory is reported as a current asset.
Whether the physical inventory count of the scrap material agrees with the recorded amount.
Whether the scrap material inventory is valued at the lower of cost or market.
An engagement performed at an organization’s payroll department has revealed various control weaknesses. These weaknesses along with recommendations...
Audit committee of the board of directors.
Which of the following individuals normally would not receive an internal auditing report related to a review of the purchasing cycle?
The director of purchasing.
The independent external auditor.
The general auditor.
The chair of the board of directors.
The internal auditing department has just completed an audit report that outlines several deficiencies found in the company’s product distribution c...
The marketing director
The sales representative.
The advertising manager
The primary reason for having written formal internal audit reports is to
Provide an opportunity for auditee response.
Direct senior management to corrective actions.
Provide a formal means by which the external auditor assesses potential reliance on the internal audit department.
Record findings and recommended courses of action.
Which one of the following forms of audit is most likely to involve a review of an entity’s performance of specific activities in comparison to org...
Information system audit.
If a corporation may be violating federal and state laws governing environmental concerns, which one of the following types of audit will best assist...
Which one of the following types of audits would be most likely to focus on objectives related to the economic and efficient use of resources?
Information systems audit.
When an auditor expresses an opinion as to the efficiency and effectiveness of an entity’s activities and makes recommendations for improvements, t...
Financial statement audit of a public company.
Financial statement audit of a municipality.
In the practice of internal auditing, the auditors must consider the following responsibilities: Be alert to the possibility of intentional wrongd...
Due professional care.
Reliability and integrity of information.
Policies and procedures.
In the practice of internal auditing, auditors should identify conditions such as Underutilized facilities, Procedures which are not cost just...
Due professional care.
Performance of audit work.
Scope of work.
An external auditor’s primary consideration when assessing a company’s internal control structure policies and procedures is whether they
Prevent management override.
Relate to the control environment.
Reflect management’s philosophy and operating style.
Affect the financial statement assertions.
Which one of the following statements most accurately explains the difference between the internal audit departmentâ€™s responsibilities in revie...
Compliance reviews are a means of ensuring that the organization complies with laws, rules and regulations, while operational audits are conducted primarily to identify operational problems and enhance efficiency and effectiveness of operations.
Compliance reviews are performed to ensure that the entityâ€™s financial statements are in accordance with accepted accounting principles, while operational audits are performed at the departmental level.
Compliance reviews are performed to assure that employees comply with company rules and guidelines, while operational audits are directed toward specific financial issues as directed by management.
Compliance reviews are directed toward ensuring that the organization complies with rules and regulations, while operational audits are conducted to ensure that the entityâ€™s financial statements are in accordance with accepted accounting principles.
Accounting control should provide reasonable assurance about the achievement of management’s objectives. The concept of internal controls providing ...
The auditor’s primary responsibility is the detection of fraud.
Employee carelessness can weaken an internal accounting control system.
Control procedures should not have an adverse effect on efficiency or profitability.
Judgmentally selected samples do not meet the criteria for statistical validity.
In a compliance audit, the internal auditor is most likely to
Identify the causes of a shortfall in production output.
Examine the production process to determine if it is possible to enhance the efficiency or effectiveness of operations.
Assist management with the internal control assessment required by the Sarbanes-Oxley Act.
Determine whether the company’s hiring practices are in conformity with laws regarding fair hiring and proper dismissal of employees.
Which one of the following statements best describes the objective of an operational audit?
To assess conformance with laws and regulations.
To analyze the reported financial activity of an entity.
To determine if the financial statements are fairly represented.
To appraise the efficiency and effectiveness of a process.
Which one of the following best represents an example of information that internal auditors should report to the board of directors?
The decisions regarding actions that management should take to correct internal control deficiencies.
Items that could adversely affect the organization.
All audit findings that have been corrected.
The cost of correcting the significant audit issues.
When determining which controls to audit, an internal auditor should focus primarily on the relevance of those controls to the
Operating procedures of the company
Audit objectives that have been identified.
Operating objectives of the company.
Controls identified by the external auditor.
In order to achieve independence, the internal audit function should
Consist solely of external auditors from the same firm as the company’s independent accountants.
Consist solely of external auditors from a firm different from the company’s independent accountants.
Report to the audit committee of the board of directors or others charged with governance.
Report to the engagement partner of the company’s independent accountant.
Which of the following is not a threat to information systems?
Data processed by a computer system are usually transferred to some form of output medium for storage. However, the presence of computerized output do...
Transaction controls, general controls, and printout controls.
Activity listings, echo checks, and pre-numbered forms.
Tape and disk output controls and printed output controls.
Input controls, tape and disk output controls, and printed output controls.
In the organization of the information systems function, the most important segregation of duties is
Not allowing the data librarian to assist in data processing operations.
Assuring that those responsible for programming the system do not have access to data processing operations.
Having a separate information officer at the top level of the organization outside of the accounting function.
Using different programming personnel to maintain utility programs from those who maintain the application programs.
To properly control access to accounting database files, the database administrator should ensure that database system features are in place to permit
Read-only access to the database files.
Updating from privileged utilities.
Access only to authorized logical views.
User updates of their access profiles.
Data input validation routines include
An accounting system identification code that uses a sum-of-digits check digit will detect all of the following errors except
In order to prevent, detect and correct errors and unauthorized tampering, a payroll system should have adequate controls. The best set of controls fo...
Batch and hash totals, record counts of each run, proper separation of duties, passwords and user codes, and backup copies of activity and master files.
Employee supervision, batch totals, record counts of each run, and payments by check.
Passwords and user codes, batch totals, employee supervision, and record counts of each run.
Batch totals, record counts, user codes, proper separation of duties, and online edit checks.
An employee in the receiving department keyed in a shipment from a remote terminal and inadvertently omitted the purchase order number. The best syste...
Which one of the following statements concerning concurrent auditing techniques is false?
They allow monitoring a system on a continuous basis for fraudulent transactions.
They are most useful in complex online systems in which audit trails have either become diminished or are very limited.
They allow faster detection of unauthorized transactions.
They are standard components of generic software packages.
In auditing computer-based systems, the integrated test facility (ITF)
Allows the auditor to assemble test transactions and run them through the computer system to test the integrity of controls on a sample data base.
Is a set of specialized software routines that are designed to perform specialized audit tests and store audit evidence.
Is a concurrent audit technique that establishes a special set of dummy master files and enters transactions to test the programs using the dummy files during regular processing runs.
Uses an audit log to record transactions and data having special audit significance during regular processing runs.
A company makes snapshot copies of some often-used data files and makes them available on the server. Authorized users can then download data subsets...
Replicas may not be synchronized.
Fragments may lack integrity.
Transactions may be committed prematurely.
Currency may not be maintained.
The most critical aspect of separation of duties within information systems is between
Project leaders and programmers.
Programmers and computer operators.
Management and users.
Programmers and systems analysts.
Which of the following is an example of an input control?
Run-to-run control totals.
Dual write routines.
Which one of the following input validation routines is not likely to be appropriate in a real-time operation?
Redundant data check.
The online data entry control called preformatting is
A program initiated prior to regular input to discover errors in data before entry so that the errors can be corrected.
A check to determine if all data items for a transaction have been entered by the terminal operator.
A series of requests for required input data that requires an acceptable response to each request before a subsequent request is made.
The display of a document with blanks for data items to be entered by the terminal operator.
Which one of the following represents a lack of internal control in a computer-based system?
Any and all changes in applications programs have the authorization and approval of management.
Provisions exist to ensure the accuracy and integrity of computer processing of all files and reports.
Provisions exist to protect data files from unauthorized access, modification, or destruction.
Programmers have access to change programs and data files when an error is detected.
Edit checks in a computerized accounting system
Are preventive controls.
Should be performed on transactions prior to updating a master file.
Must be installed for the system to be operational.
Should be performed immediately prior to output distribution.
The use of a generalized audit software package
Relieves an auditor of the typical tasks of investigating exceptions, verifying sources of information, and evaluating reports.
Is a major aid in retrieving information from computerized files.
Overcomes the need for an auditor to learn much about computers.
Is a form of auditing around the computer.
Which one of the following is the best reason for developing a computer security plan?
All possible threats associated with the data processing equipment are identified.
Recovery from the damage associated with any identified threats can be assured.
A company can select the set of control policies and procedures that optimize computer security relative to cost
The user departments can be assured that control policies are in place and their data files are secure.
An online data entry technique that can be employed when inexperienced personnel enter data is the use of
Routines that use the computer to check the validity and accuracy of transaction data during input are called
Integrated test facilities.
An example of an internal check is
Making sure that output is distributed to the proper people.
Monitoring the work of programmers.
Collecting accurate statistics of historical transactions while gathering data.
Recalculating an amount to ensure its accuracy.
A control designed to catch errors at the point of data entry is
A batch total.
A record count.
A self-checking digit.
Program documentation is a control designed primarily to ensure that
Programmers have access to the tape library or information on disk files.
Programs do not make mathematical errors
Programs are kept up to date and perform as intended.
Data have been entered and processed.
Compatibility tests are sometimes employed to determine whether an acceptable user is allowed to proceed. In order to perform compatibility tests, th...
List of all authorized user code numbers and passwords.
List of all files maintained on the system.
List of all programs maintained on the system.
Limit on the number of transaction inquiries that can be made by each user in a specified time period.
Whether or not a real-time program contains adequate controls is most effectively determined by the use of
An integrated test facility.
A tagging routine.
A tracing routine.
The most critical aspect of the separation of duties within a mainframe information systems environment is between
Programmers and project leaders.
Programmers and systems analysts.
Programmers and users.
Programmers and computer operators.
Control procedures over accounting information systems are referred to as general controls or application controls. The primary objective of applicati...
Maintain the accuracy of the inputs, files, and outputs for specific applications.
Ensure the separation of incompatible functions in the data processing departments.
Provide controls over the electronic functioning of the hardware.
Plan for the protection of the facilities and backup for the systems.
A company employing an online computer system has terminals located in all operating departments for inquiry and updating purposes. Many of the compan...
Restrict the physical access to terminals.
Establish user codes and passwords.
Use validity checks.
Apply a compatibility test to transactions or inquiries entered by the user.
In entering the billing address for a new client in Emil Company’s computerized database, a clerk erroneously entered a nonexistent zip code. As a ...
Record count test.
Are generated by the computer and eventually return to it.
Generally circulate only within the computer center.
Are only used internally in an organization
Are largely restricted to use in a manual system.
An advantage of having a computer maintain an automated error log in conjunction with computer edit programs is that
Reports can be developed that summarize the errors by type, cause, and person responsible.
Less manual work is required to determine how to correct errors
Better editing techniques will result
The audit trail is maintained.
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