Question 1

Automated controls are always preferable to manual controls.

Accepted Answer

A) True 
 B)False  False

Question 2

It is more difficult to safeguard logical computer access than it is to safeguard physical computer access.

Accepted Answer

A) True 
 B)False  True

Question 3

Which of the following is not a control to ensure the physical safety of a company's data processing center?

Accepted Answer

A) Strategic placement of the computer center 
B) The use of password codes 
C) The use of identification badges 
D) all of the above are computer facility controls 
A) Strategic placement of the computer center 
B) The use of password codes 
C) The use of identification badges 
D) all of the above are computer facility controls D

Question 4

Output controls for the computerized accounting information system focus primarily on the security and distribution of print media prepared by the computer center.

Accepted Answer

A) True 
 B)False

Question 5

An apparent error in input data describing an inventory item received was referred back to the originating department for correction.A week later the department complained that the inventory in question was incorrect.Data processing could not easily determine whether or not the item had been processed by the computer.The best control procedure would be:

Accepted Answer

A) Input edit checks 
B) Missing data validity check 
C) Transmittal control 
D) An error log 
A) Input edit checks 
B) Missing data validity check 
C) Transmittal control 
D) An error log

Question 6

Editing checks performed "in tandem" would be defined as:

Accepted Answer

A) Tests of alphanumeric field content 
B) Tests for valid codes 
C) Redundant data checks 
D) Tests of reasonableness 
A) Tests of alphanumeric field content 
B) Tests for valid codes 
C) Redundant data checks 
D) Tests of reasonableness

Question 7

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 result, the first month's bill mailed to the new client was returned to Emil Company.Which one of the following would most likely have led to discovery of the error at the time of entry into Emil Company's computerized database?

Accepted Answer

A) Limit test 
B) Validity test 
C) Parity test 
D) Record count test 
A) Limit test 
B) Validity test 
C) Parity test 
D) Record count test

Question 8

Which of the following is true about control totals?

Accepted Answer

A) Usually expressed in dollars 
B) Batches normally occur in groups of 200 or more 
C) Should "make sense" to be useful 
D) none of the above 
A) Usually expressed in dollars 
B) Batches normally occur in groups of 200 or more 
C) Should "make sense" to be useful 
D) none of the above

Question 9

From the standpoint of computer fraud, which type of controls would probably be of highest importance?

Accepted Answer

A) Input controls 
B) Access controls 
C) Output controls 
D) Processing controls 
A) Input controls 
B) Access controls 
C) Output controls 
D) Processing controls

Question 10

Manual controls are often preferable to automated controls when human judgement and expertise are required.

Accepted Answer

A) True 
 B)False

Question 11

Transactions which were erroneous and had been previously rejected by the computer system apparently were not being reentered and reprocessed once they had been corrected.This erroneous condition is best controlled by:

Accepted Answer

A) Comparing a record count of transactions input into the system 
B) A comparison of the batch control totals 
C) Scanning the error control log 
D) Scanning the console log 
E) Desk checking 
A) Comparing a record count of transactions input into the system 
B) A comparison of the batch control totals 
C) Scanning the error control log 
D) Scanning the console log 
E) Desk checking

Question 12

In order to maintain good internal control within the computer department:

Accepted Answer

A) Computer operators need to be good programmers 
B) Programmers should have control over day-to-day production runs 
C) Computer operators should be allowed to make changes in programs as needed in order to keep the computer running 
D) Programmers and computer operators should be in separate sections of the computer department 
E) The tape librarian should be able to operate the computer 
A) Computer operators need to be good programmers 
B) Programmers should have control over day-to-day production runs 
C) Computer operators should be allowed to make changes in programs as needed in order to keep the computer running 
D) Programmers and computer operators should be in separate sections of the computer department 
E) The tape librarian should be able to operate the computer

Question 13

Daylight Corporation's organization chart provides for a controller and an information processing manager, both of whom report to the financial vice-president.Internal control would not be strengthened by:

Accepted Answer

A) Assigning the programming and operating of the computer to an independent control group which reports to the controller 
B) Providing for maintenance of input data controls by an independent control group which reports to the controller 
C) Rotating periodically among machine operators the assignments of individual application runs 
D) Providing for review and distribution of computer output by an independent control group which reports to the controller 
A) Assigning the programming and operating of the computer to an independent control group which reports to the controller 
B) Providing for maintenance of input data controls by an independent control group which reports to the controller 
C) Rotating periodically among machine operators the assignments of individual application runs 
D) Providing for review and distribution of computer output by an independent control group which reports to the controller

Question 14

Jonkers, Inc., a large retail chain, is installing a computerized accounts receivable system employing a batch mode of processing with sequential files.The program which will process receipts on account should include an input edit routine to assure:

Accepted Answer

A) Proper sequencing of data 
B) Header and trailer label accuracy 
C) The amount received is recorded correctly 
D) The existence of control totals 
E) Proper operator intervention 
A) Proper sequencing of data 
B) Header and trailer label accuracy 
C) The amount received is recorded correctly 
D) The existence of control totals 
E) Proper operator intervention

Question 15

According to the text, data transcription would only be necessary for a computerized accounting information system.

Accepted Answer

A) True 
 B)False

Question 16

The control of input and output of accounting transactions to and from the information processing subsystem should be performed by an independent control group.

Accepted Answer

A) True 
 B)False

Question 17

Logical access to the computer system would be best controlled by:

Accepted Answer

A) Intrusion alarm systems 
B) Complex operating systems 
C) Restrictions on physical access to online terminals 
D) Password codes 
A) Intrusion alarm systems 
B) Complex operating systems 
C) Restrictions on physical access to online terminals 
D) Password codes

Question 18

Which of the following best describes a fundamental control weakness often associated with automated data processing systems?

Accepted Answer

A) Automated data processing equipment is more subject to systems error than manual processing is subject to human error 
B) Automated data processing equipment processes and records similar transactions in a similar manner 
C) Automated data processing procedures for detection of invalid and unusual transactions are less effective than manual control procedures 
D) Functions that would normally be separated in a manual system are combined in an automated data processing system 
A) Automated data processing equipment is more subject to systems error than manual processing is subject to human error 
B) Automated data processing equipment processes and records similar transactions in a similar manner 
C) Automated data processing procedures for detection of invalid and unusual transactions are less effective than manual control procedures 
D) Functions that would normally be separated in a manual system are combined in an automated data processing system

Question 19

The master file for inventory did not seem right.The file was printed out and many errors were found.The best control procedure would be:

Accepted Answer

A) Trailer label control totals 
B) A periodic test against physical count 
C) A parity check 
D) Limit tests 
A) Trailer label control totals 
B) A periodic test against physical count 
C) A parity check 
D) Limit tests

Question 20

The least effective physical security control for a computer center is:

Accepted Answer

A) Limited employee access 
B) Color-coded identification badges 
C) Insurance 
D) Strategic placement of computer center equipment 
A) Limited employee access 
B) Color-coded identification badges 
C) Insurance 
D) Strategic placement of computer center equipment

Automated controls are always preferable to manual controls.

It is more difficult to safeguard logical computer access than it is to safeguard physical computer access.

Which of the following is not a control to ensure the physical safety of a company's data processing center?

Output controls for the computerized accounting information system focus primarily on the security and distribution of print media prepared by the computer center.

Editing checks performed "in tandem" would be defined as:

Which of the following is true about control totals?

From the standpoint of computer fraud, which type of controls would probably be of highest importance?

Manual controls are often preferable to automated controls when human judgement and expertise are required.

Transactions which were erroneous and had been previously rejected by the computer system apparently were not being reentered and reprocessed once they had been corrected.This erroneous condition is best controlled by:

In order to maintain good internal control within the computer department:

Daylight Corporation's organization chart provides for a controller and an information processing manager, both of whom report to the financial vice-president.Internal control would not be strengthened by:

Jonkers, Inc., a large retail chain, is installing a computerized accounts receivable system employing a batch mode of processing with sequential files.The program which will process receipts on account should include an input edit routine to assure:

According to the text, data transcription would only be necessary for a computerized accounting information system.

The control of input and output of accounting transactions to and from the information processing subsystem should be performed by an independent control group.

Logical access to the computer system would be best controlled by:

Which of the following best describes a fundamental control weakness often associated with automated data processing systems?

The master file for inventory did not seem right.The file was printed out and many errors were found.The best control procedure would be:

The least effective physical security control for a computer center is:

Accounting Information Systems and the Accountant

Accounting on the Internet

Information Technology and Aiss

Accounting and Data Analytics

Integrated Accounting and Enterprise Software

Introduction to Internal Control Systems and Risk Management

Accounting Information Systems and Business Processes: Part I

Accounting Information Systems and Business Processes: Part II

Cybercrime, Fraud, and Ethics

Information Technology Auditing

Documenting Accounting Information Systems

Developing and Implementing Effective Accounting Information Systems

Database Design

Organizing and Manipulating the Data in Databases

Database Forms and Reports

Filters

Exam 7: Computer Controls for Organizations and Accounting Information Systems

Automated controls are always preferable to manual controls.

It is more difficult to safeguard logical computer access than it is to safeguard physical computer access.

Which of the following is not a control to ensure the physical safety of a company's data processing center?

Output controls for the computerized accounting information system focus primarily on the security and distribution of print media prepared by the computer center.

Editing checks performed "in tandem" would be defined as:

Which of the following is true about control totals?

From the standpoint of computer fraud, which type of controls would probably be of highest importance?

Manual controls are often preferable to automated controls when human judgement and expertise are required.

Transactions which were erroneous and had been previously rejected by the computer system apparently were not being reentered and reprocessed once they had been corrected.This erroneous condition is best controlled by:

In order to maintain good internal control within the computer department:

Daylight Corporation's organization chart provides for a controller and an information processing manager, both of whom report to the financial vice-president.Internal control would not be strengthened by:

Jonkers, Inc., a large retail chain, is installing a computerized accounts receivable system employing a batch mode of processing with sequential files.The program which will process receipts on account should include an input edit routine to assure:

According to the text, data transcription would only be necessary for a computerized accounting information system.

The control of input and output of accounting transactions to and from the information processing subsystem should be performed by an independent control group.

Logical access to the computer system would be best controlled by:

Which of the following best describes a fundamental control weakness often associated with automated data processing systems?

The master file for inventory did not seem right.The file was printed out and many errors were found.The best control procedure would be:

The least effective physical security control for a computer center is:

Accounting Information Systems and the Accountant

Accounting on the Internet

Information Technology and Aiss

Accounting and Data Analytics

Integrated Accounting and Enterprise Software

Introduction to Internal Control Systems and Risk Management

Accounting Information Systems and Business Processes: Part I

Accounting Information Systems and Business Processes: Part II

Cybercrime, Fraud, and Ethics

Information Technology Auditing

Documenting Accounting Information Systems

Developing and Implementing Effective Accounting Information Systems

Database Design

Organizing and Manipulating the Data in Databases

Database Forms and Reports

Filters