First Federal S & L has an online real-time system, with
terminals installed in all of its branches. This system will not
accept a customer’s cash withdrawal instructions in excess of
$1,000 without the use of a “terminal audit key.” After the transaction
is authorized by a supervisor, the bank teller then processes
the transaction with the audit key. This control can be
strengthened by

(a) The requirement is to determine a control which
will strengthen an online real-time cash withdrawal system. Answer
(a) is correct because documentation of all situations in
which the “terminal audit key” has been used will improve the
audit trail. Answer (b) is incorrect because increasing the dollar
amount required for use of the key will simply reduce the number
of times it is used (and allow larger withdrawals to be made without
any required special authorization). Answer (c) is incorrect
because there is no reason to believe that a manual system will be
more effective than an online system. Answer (d) is incorrect
because parallel simulation, running the data through alternate
software, would seem to have no particular advantage for processing
these large withdrawals.