Internal Auditing and Systems Controls MCQs Paper

Some of the more important controls that relate to automated accounting information systems are validity checks, limit checks, field checks, and sign tests. These are classified as

Control total validation routines.
Hash totaling.
Data access validation routines.
Input validation routines.Detailed Answer

Proper segregation of functional responsibilities to achieve effective internal control calls for separation of the functions of

Authorization, execution, and payment.
Authorization, recording, and custody. Detailed Answer
Custody, execution, and reporting.
Authorization, payment, and recording.

A computer virus is different from a “Trojan horse” because the virus can

Corrupt data.
Alter programming instructions.
Replicate itself.Detailed Answer
Erase executable files.

In securing the client/server environment of an information system, a principal disadvantage of using a single level sign-on password is the danger of creating a(n)

Trap door entry point.
Single point of failure.Detailed Answer
Administrative bottleneck.
Lock-out of valid users.

An internal information systems control questionnaire that includes computer input controls, the distribution of output media, and record-retention procedures is designed to review and assess which one of the following?

Facility security.
Organization of duties.
Computer operations.Detailed Answer
Computer systems.

A company’s accounts payable supervisor assigned a vendor code to a storage facility owned by the supervisor, then instructed the company’s accounting system to pay monthly rent for a storage unit allegedly leased from the storage facility. This situation is an example of a failure of controls due to the lack of

Commitment to competence in job skills and knowledge.
An effective internal audit function.
Appropriate segregation of dutiesDetailed Answer
Appropriate physical controls.

Which one of the following procedures functions primarily as an output control over a companyâ€™s payroll processing?

The payroll process assigns each batch of timesheets a unique number recorded in a batch register.
The payroll application program performs a limit test that subjects any transaction involving more than 80 hours worked to review before processing.
The payroll files are assigned internal and external file labels that are checked by the application program before processing.
The payroll distribution log contains a schedule of when checks and reports are prepared with the names of individuals who are to receive the report.Detailed Answer

The director in charge of a company’s data center is reviewing the controls surrounding the access to the hardware in the data center, which is located offsite. The control below that best identifies what the director should consider in order to protect access to the hardware is

Limitation of physical access.Detailed Answer
Logical access controls.
Application controls
Authentication controls.

A payroll accountant for a company checked the most recent payroll records and discovered that the company had accidentally paid an employee for 400 hours instead of 40 hours. Which one of the controls below would be the best control to prevent an error such as this one?

A processing control that highlighted the unusually high amount.
A transaction control that would create an error report.
An input control that looked for unreasonable amounts.Detailed Answer
An output control that would not print a check over a certain amount.

To prevent or detect potential fraudulent actions that could result from unexecuted computer program code designed to be activated if an unscrupulous programmer becomes dissatisfied or is terminated, auditors seek to identify and review unexecuted program codes. Auditors can accomplish this through the use of which one of the following methods?

Regression testing.
Mapping programs.Detailed Answer
Scanning routines.
Test data processing.

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Internal Auditing and Systems Controls Paper 11