7. Internal Control - Purchases, Payroll, and Other Cycles

Question 1

What is a data dictionary?

Answer 1

A file (usually computerized) in which the records relate to specified data items.

Question 2

What does an activity log allow for?

Answer 2

It allows for the tracing of a transaction from initiation to its disposition, an activity log provides a key link in the process.

Question 3

In general are preventive controls or detective controls more important and why?

Answer 3

In general, preventive controls are more important than detective controls because the benefits typically outweigh the costs