Question 1

Fault-tolerant systems are typically based on the concept of:

Accepted Answer

A) Redundancy 
B) Consistency 
C) Materiality 
D) Fairness

Question 2

Enterprise controls:

Accepted Answer

A) Are controls in Enterprise Resource Planning Systems 
B) Are controls required by the AICPA 
C) Affect only application controls 
D) Affect many general and application controls

Question 3

Which of the following is not normally used as a control total to check the validity of data processing activities?

Accepted Answer

A) Edit tests 
B) Batch totals 
C) Record counts 
D) Hash totals

Question 4

A hash total is obtained by counting all documents or records to be processed.

Accepted Answer

A) True 
 B)False

Question 5

A CPA reviews a client's payroll procedures.The CPA would consider internal control to be less than effective if a payroll department supervisor was assigned the responsibility for:

Accepted Answer

A) Distributing payroll checks to employees 
B) Reviewing and approving time reports for subordinate employees 
C) Hiring subordinate employees 
D) Initiating requests for salary adjustments for subordinate employees

Question 6

A data field could pass all editing tests and still be invalid.Additional controls to cope with this would include:

Accepted Answer

A) Check digit 
B) Unfound record test 
C) Valid code test 
D) both a and b could validate after editing tests

Question 7

The master inventory file, contained on a removable magnetic disk, was destroyed by a small fire next to the area where it was stored.The company had to take a special complete inventory in order to re?establish the file.The best control procedure would be:

Accepted Answer

A) Fire insurance 
B) Data processing insurance 
C) A copy of the disk 
D) Remote storage of a copy of the disk and the transactions since the disk was copied

Question 8

Which of the following is an example of application controls in automated data processing systems?

Accepted Answer

A) Input controls 
B) Hardware controls 
C) Documentation procedures 
D) Controls over access to equipment and data files

Question 9

Which of the following control mechanisms is common to both observation and recording control:

Accepted Answer

A) Confirmation slips 
B) Dual observation 
C) Preprinted forms 
D) Turn around document

Question 10

Organizations that allow employees to use their own mobile devices for work purposes often require the installation of ___ software to mitigate the risk of enterprise information resources being compromised in the event of device theft or employee termination:

Accepted Answer

A) DDP 
B) DLP 
C) MDM 
D) ETL

Question 11

The principal function of an accounting system's computerized controls is:

Accepted Answer

A) Detecting computer frauds 
B) Preventing computer frauds 
C) Encouraging programmer honesty 
D) none of the above

Question 12

Which of the following is not a subcategory of input controls?

Accepted Answer

A) Computer access 
B) Data transcription 
C) Data recording 
D) Data processing

Question 13

A Business Continuity Plan has numerous components, one of which is the Disaster Recovery Plan.

Accepted Answer

A) True 
 B)False

Question 14

When a company is setting up its accounting information system, it is important for management to select:

Accepted Answer

A) A standard set of computer control mechanisms 
B) Only those controls which appear to serve its needs 
C) Controls whose benefits exceed their costs 
D) b and c only

Question 15

We can classify IT controls based on implementation, function or scope.When considering IT controls based on scope, this classification includes:

Accepted Answer

A) Preventive, Detective, Corrective 
B) Enterprise level, General and Application 
C) Manual, Automated 
D) Risk Assessment, Monitoring, Information & Communication

Question 16

Within database systems, a control that restricts user access to precisely designated data sets and files is called a(an):

Accepted Answer

A) Layered password 
B) Open password 
C) Closed password 
D) Server password

Question 17

___ controls prevent, detect, and correct errors and irregularities in processing transactions.

Accepted Answer

A) Application 
B) General 
C) Logical 
D) Physical

Question 18

Which of the following would lessen internal control in an automated data processing system?

Accepted Answer

A) The computer librarian maintains custody of computer program instructions and detailed listings 
B) Computer operators have access to operator instructions and detailed program listings 
C) The data control group is solely responsible for the distribution of all computer output 
D) Computer programmers write and debug programs which perform routines designed by the systems analyst

Question 19

For a routine management report produced on the computer, which one of the following control duties is most likely to be the sole responsibility of the user department?

Accepted Answer

A) Scanning the report for garbled output 
B) Checking input totals against report totals 
C) Determining that figures in the report are reasonable 
D) Verifying record count totals 
E) Checking the console listing for improper operator procedures

Question 20

General controls are those controls that affect the entire organization and influence the effectiveness of other controls.

Accepted Answer

A) True 
 B)False

Exam 7: Computer Controls for Organizations and Accounting Information Systems

Fault-tolerant systems are typically based on the concept of:

Enterprise controls:

Which of the following is not normally used as a control total to check the validity of data processing activities?

A hash total is obtained by counting all documents or records to be processed.

A CPA reviews a client's payroll procedures.The CPA would consider internal control to be less than effective if a payroll department supervisor was assigned the responsibility for:

A data field could pass all editing tests and still be invalid.Additional controls to cope with this would include:

The master inventory file, contained on a removable magnetic disk, was destroyed by a small fire next to the area where it was stored.The company had to take a special complete inventory in order to re?establish the file.The best control procedure would be:

Which of the following is an example of application controls in automated data processing systems?

Which of the following control mechanisms is common to both observation and recording control:

Organizations that allow employees to use their own mobile devices for work purposes often require the installation of ___ software to mitigate the risk of enterprise information resources being compromised in the event of device theft or employee termination:

The principal function of an accounting system's computerized controls is:

Which of the following is not a subcategory of input controls?

A Business Continuity Plan has numerous components, one of which is the Disaster Recovery Plan.

When a company is setting up its accounting information system, it is important for management to select:

We can classify IT controls based on implementation, function or scope.When considering IT controls based on scope, this classification includes:

Within database systems, a control that restricts user access to precisely designated data sets and files is called a(an) :

___ controls prevent, detect, and correct errors and irregularities in processing transactions.

Which of the following would lessen internal control in an automated data processing system?

For a routine management report produced on the computer, which one of the following control duties is most likely to be the sole responsibility of the user department?

General controls are those controls that affect the entire organization and influence the effectiveness of other controls.