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AFM275 MCQs > Chapter 9: Internal controls II > Flashcards

Chapter 9: Internal controls II Flashcards

1
Q

Which control would best help achieve the aim of correct valuation for purchase transactions entered into a system?

a. Range checks – checking the quantity ordered against acceptable ranges.
b. Validity checks – checking the supplier is listed in our supplier master file.
c. Sequence check – ensuring the purchase order number is the next number in the sequence.
d. Authorisation – getting a manager to approve all purchases.

A

Which control would best help achieve the aim of correct valuation for purchase transactions entered into a system?

*a. Range checks – checking the quantity ordered against acceptable ranges.

b. Validity checks – checking the supplier is listed in our supplier master file.
c. Sequence check – ensuring the purchase order number is the next number in the sequence.
d. Authorisation – getting a manager to approve all purchases.

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2
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3
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4
Q

Which of the following is a risk to the financial statement of a company when it places a purchase order with a supplier?

a. The supplier delivers the goods with an invoice instead of a delivery note.
b. The goods are not available.
c. The supplier delivers the wrong goods or wrong quantity.
d. The purchasing officer orders the wrong goods.

A

Which of the following is a risk to the financial statement of a company when it places a purchase order with a supplier?

a. The supplier delivers the goods with an invoice instead of a delivery note.
b. The goods are not available.

*c. The supplier delivers the wrong goods or wrong quantity.

d. The purchasing officer orders the wrong goods.

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5
Q

Which of the following is not one of the six COBIT 5 application controls?

a. Source data preparation and authentication.
b. Transaction authentication and integrity.
c. Processing integrity and validity.
d. Programmable logic controller.

A

Which of the following is not one of the six COBIT 5 application controls?

a. Source data preparation and authentication.
b. Transaction authentication and integrity.
c. Processing integrity and validity.

*d. Programmable logic controller.

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6
Q

Disadvantages of manual controls include all of the following except:

a. manual controls are prone to human errors.
b. manual controls are prone to inconsistent application.
c. manual controls used up too many human resources.
d. manual controls are easier to avoid and workaround.

A

Disadvantages of manual controls include all of the following except:

a. manual controls are prone to human errors.
b. manual controls are prone to inconsistent application.

*c. manual controls used up too many human resources.

d. manual controls are easier to avoid and workaround.

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7
Q

Examples of preventive controls to prevent incorrect data entry into a sales system include: (i) validity checks, (ii) range checks, (iii) completeness checks, (iv) run-to-run total checks, (v) redundant data checks.

a. i, ii, iii and iv
b. ii, iii, iv and v
c. i, iii, iv and v
d. i, ii, iv and v
e. i, ii, iii and v

A

Examples of preventive controls to prevent incorrect data entry into a sales system include: (i) validity checks, (ii) range checks, (iii) completeness checks, (iv) run-to-run total checks, (v) redundant data checks.

a. i, ii, iii and iv
b. ii, iii, iv and v
c. i, iii, iv and v
d. i, ii, iv and v

e. i, ii, iii and v

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8
Q

In general, disaster recovery plans include all of the following except:

a. temporary sites.
b. staffing.
c. employee evacuation procedures.
d. business relationships restoration.

A

In general, disaster recovery plans include all of the following except:

a. temporary sites.
b. staffing.

*c. employee evacuation procedures.

d. business relationships restoration.

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9
Q

The control matrix does NOT tell us:

a. the control objectives of a control system.
b. how control objectives would ideally be attained.
c. whether control objectives actually exist within a system.
d. the effectiveness of the control objectives.

A

The control matrix does NOT tell us:

a. the control objectives of a control system.
b. how control objectives would ideally be attained.
c. whether control objectives actually exist within a system.

*d. the effectiveness of the control objectives.

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10
Q

Which of the following is an example of a good segregation of duties?

a. The sales department is allowed to bill customers.
b. The accounts receivable department is allowed to prepare bills.
c. The warehouse personnel are allowed to maintain the inventory record.
d. None of the options is correct.

A

Which of the following is an example of a good segregation of duties?

a. The sales department is allowed to bill customers.
b. The accounts receivable department is allowed to prepare bills.
c. The warehouse personnel are allowed to maintain the inventory record.

*d. None of the options is correct.

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11
Q

Which of the following is NOT a form of physical control?

a. Servers are placed in a locked room.
b. A username and a password are needed to log into a computer.
c. Security cameras are put in place.
d. A swipe card system for controlling access to computer labs.

A

Which of the following is NOT a form of physical control?

a. Servers are placed in a locked room.

*b. A username and a password are needed to log into a computer.

c. Security cameras are put in place.
d. A swipe card system for controlling access to computer labs.

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12
Q

Segregation of duties is a principle that applies to which sections of an organisation?

a. Throughout the organisation including office staff, accountants and IT workers.
b. Accountants.
c. The office staff who have to deal with money matters.
d. Programmers and computer support staff, who could interfere with the accounting information system.

A

Segregation of duties is a principle that applies to which sections of an organisation?

*a. Throughout the organisation including office staff, accountants and IT workers.

b. Accountants.
c. The office staff who have to deal with money matters.
d. Programmers and computer support staff, who could interfere with the accounting information system.

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13
Q

After identifying risks, management will decide on appropriate policies and procedures to address the risks. These policies and procedures are called:

a. control policies.
b. control activities.
c. control procedures.
d. control processes.

A

After identifying risks, management will decide on appropriate policies and procedures to address the risks. These policies and procedures are called:

a. control policies.

*b. control activities.

c. control procedures.
d. control processes.

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14
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16
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17
Q

Which of the following would enable an organisation to detect that an unauthorised person has entered a secure area?

a. Swipe card access.
b. Physical lock of the door.
c. Security camera.
d. Biometric access control.

A

Which of the following would enable an organisation to detect that an unauthorised person has entered a secure area?

a. Swipe card access.
b. Physical lock of the door.

*c. Security camera.

d. Biometric access control.

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18
Q

The comparison of actual and budgeted figures and the conduct of variance analysis to determine the source of the variance is a type of:

a. general control.
b. information processing control.
c. performance review.
d. application control.

A

The comparison of actual and budgeted figures and the conduct of variance analysis to determine the source of the variance is a type of:

a. general control.
b. information processing control.

*c. performance review.

d. application control.

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19
Q

Purchasing goods over the Internet would fit into which of the following categories of processing?

a. Batch.
b. Online real-time.
c. Online data collection batched for later processing.
d. Shopping basket.

A

Purchasing goods over the Internet would fit into which of the following categories of processing?

a. Batch.
b. Online real-time.

*c. Online data collection batched for later processing.

d. Shopping basket.

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20
Q

Computer-based controls are extremely dependent on:

(i) a sound control environment.
(ii) sound general controls.
(iii) the COBIT framework.
a. (i) (ii)
b. (i) (iii)
c. (ii) (iii)
d. (i) (ii) (iii)

A

Computer-based controls are extremely dependent on:

(i) a sound control environment.
(ii) sound general controls.
(iii) the COBIT framework.

*a. (i) (ii)

b. (i) (iii)
c. (ii) (iii)
d. (i) (ii) (iii)

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21
Q

CPA Australia identifies five reasons an internal control system does not provide 100 per cent assurance that an organisation’s objectives will be achieved. These reasons do NOT include:

a. judgement error.
b. unexpected transactions.
c. weak internal controls.
d. natural disasters.

A

CPA Australia identifies five reasons an internal control system does not provide 100 per cent assurance that an organisation’s objectives will be achieved. These reasons do NOT include:

a. judgement error.
b. unexpected transactions.
c. weak internal controls.

*d. natural disasters.

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22
Q

How does a computer system know that a sales manager has authorised a credit transaction over $1000?

a. The input terminal has bio-security check e.g. retina scanning.
b. A combination of checks on the size of the credit required and the access rights of the manager when she logged in with her username and password.
c. The system must insist on the sales manager entering the transaction.
d. The control comes from the work practices outside the computer.

A

How does a computer system know that a sales manager has authorised a credit transaction over $1000?

a. The input terminal has bio-security check e.g. retina scanning.

*b. A combination of checks on the size of the credit required and the access rights of the manager when she logged in with her username and password.

c. The system must insist on the sales manager entering the transaction.
d. The control comes from the work practices outside the computer.

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23
Q

The first that financial giant Morgan Stanley knew about the 9/11 bombings were that their business started running from their ________________ several kilometres away from Wall St.

a. cold site
b. hot site
c. off-site backup
d. hosted site

A

The first that financial giant Morgan Stanley knew about the 9/11 bombings were that their business started running from their ________________ several kilometres away from Wall St.

a. cold site

*b. hot site

c. off-site backup
d. hosted site

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24
Q

Which of the following is NOT a major aim of a computerised accounting information system?

a. Proper authorisation.
b. Timeliness.
c. Proper recording.
d. User friendly.

A

Which of the following is NOT a major aim of a computerised accounting information system?

a. Proper authorisation.
b. Timeliness.
c. Proper recording.

*d. User friendly.

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25
Q

The use of biometric identification techniques on an entrance to the computer processing centre is an example of a:

a. preventive control.
b. detective control.
c. corrective control.
d. application control.
e. access control.

A

The use of biometric identification techniques on an entrance to the computer processing centre is an example of a:

a. preventive control.
b. detective control.
c. corrective control.
d. application control.

e. access control.

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26
Q

Which of the following is an example of poor segregation of duties?

a. Inventory control department is allowed to receive incoming goods.
b. Warehouse personnel are allowed to ship goods to customers.
c. The purchasing department is allowed to generate purchase requisitions.
d. All of the options are correct.

A

Which of the following is an example of poor segregation of duties?

a. Inventory control department is allowed to receive incoming goods.
b. Warehouse personnel are allowed to ship goods to customers.
c. The purchasing department is allowed to generate purchase requisitions.

*d. All of the options are correct.

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27
Q
A
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28
Q

Which of the following is NOT one of the main aims for an organisation in the event of a natural disaster that disrupts business operations?

a. Limit the time the business is out of operation.
b. Minimise the extent of loss to existing business resources.
c. Limit the extended harm done to business partners.
d. Minimise the loss of data and information.

A

Which of the following is NOT one of the main aims for an organisation in the event of a natural disaster that disrupts business operations?

a. Limit the time the business is out of operation.
b. Minimise the extent of loss to existing business resources.

*c. Limit the extended harm done to business partners.

d. Minimise the loss of data and information.

29
Q

The pre-numbering of cheques helps to achieve completeness because it:

a. provides control over cheques.
b. prevents the issue of false cheques.
c. allows us to account for all cheques through a sequence check.
d. allows us to ensure all cheque payments are properly authorised.

A

The pre-numbering of cheques helps to achieve completeness because it:

a. provides control over cheques.
b. prevents the issue of false cheques.

*c. allows us to account for all cheques through a sequence check.

d. allows us to ensure all cheque payments are properly authorised.

30
Q
A
31
Q
A
32
Q

In terms of proper recording of transactions, accuracy is concerned with making sure that:

(i) all data that enter the system are in the correct format.
(ii) all data that enter the system are of the right type.
(iii) all data are stored in a secured place to prevent unauthorised manipulation.
(iv) the data gathered accurately reflect the reality of the underlying transaction or event.
a. (i) (ii)
b. (i) (ii) (iii)
c. (i) (ii) (iv)
d. (i) (ii) (iii) (iv)

A

In terms of proper recording of transactions, accuracy is concerned with making sure that:

(i) all data that enter the system are in the correct format.
(ii) all data that enter the system are of the right type.
(iii) all data are stored in a secured place to prevent unauthorised manipulation.
(iv) the data gathered accurately reflect the reality of the underlying transaction or event.
a. (i) (ii)
b. (i) (ii) (iii)

*c. (i) (ii) (iv)

d. (i) (ii) (iii) (iv)

33
Q

Select the best pair of terms to complete the following statement: The threat of collusion among employees can be reduced by the application of (i)___________, which entails (ii)______________.

a. (i) organisational policies, (ii) having clearly defined job descriptions.
b. (i) organisational policies, (ii) specifying procedures for the authorisation, custody and record-keeping relating to assets.
c. (i) separation of duties, (ii) keeping employees separate from one another.
d. (i) general controls, (ii) having a clear set of organisational policies, such as job notation and forced annual leave.
e. (i) separation of duties, (ii) keeping authorisation, custody and record-keeping separate.

A

Select the best pair of terms to complete the following statement: The threat of collusion among employees can be reduced by the application of (i)___________, which entails (ii)______________.

a. (i) organisational policies, (ii) having clearly defined job descriptions.
b. (i) organisational policies, (ii) specifying procedures for the authorisation, custody and record-keeping relating to assets.
c. (i) separation of duties, (ii) keeping employees separate from one another.

d. (i) general controls, (ii) having a clear set of organisational policies, such as job notation and forced annual leave.

e. (i) separation of duties, (ii) keeping authorisation, custody and record-keeping separate.

34
Q

What should happen if a valid username is supplied but the password is incorrect?

a. The user is allowed to retry.
b. The user’s account is frozen.
c. Nothing happens, not even a message to say the login failed.
d. Security guards appear and interrogate the user.

A

What should happen if a valid username is supplied but the password is incorrect?

*a. The user is allowed to retry.

b. The user’s account is frozen.
c. Nothing happens, not even a message to say the login failed.
d. Security guards appear and interrogate the user.

35
Q

A reasonableness check that is used when processing fortnightly employee wage payments would best be used to:

a. avoid the entry of false employee names.
b. detect any employees who have their payments entered twice.
c. detect any potentially incorrect employee numbers.
d. detect potentially high values for hours worked.

A

A reasonableness check that is used when processing fortnightly employee wage payments would best be used to:

a. avoid the entry of false employee names.
b. detect any employees who have their payments entered twice.
c. detect any potentially incorrect employee numbers.

*d. detect potentially high values for hours worked.

36
Q

An antivirus program scans and monitors files in a computer continuously for viruses. This is an example of:

a. preventive control.
b. detective control.
c. corrective control.
d. application control.

A

An antivirus program scans and monitors files in a computer continuously for viruses. This is an example of:

a. preventive control.

*b. detective control.

c. corrective control.
d. application control.

37
Q
A
38
Q

Information processing controls are those that are put in place within the organisation to work towards the _______ of transactions.

a. efficiency, effectiveness and accuracy
b. timeliness, efficiency and completeness
c. accuracy, completeness and authorisation
d. authorisation, processing and accuracy

A

Information processing controls are those that are put in place within the organisation to work towards the _______ of transactions.

a. efficiency, effectiveness and accuracy
b. timeliness, efficiency and completeness

*c. accuracy, completeness and authorisation

d. authorisation, processing and accuracy

39
Q

Which of the following controls will best help detect inventory input accuracy concerns when entering credit sales into a system?

a. A batch total of the number of sales invoices in the batch.
b. A hash total of the number of inventory items ordered across all invoices.
c. A hash total of customer numbers from all sales invoices.
d. A sequence check on sales invoice numbers.

A

Which of the following controls will best help detect inventory input accuracy concerns when entering credit sales into a system?

a. A batch total of the number of sales invoices in the batch.

*b. A hash total of the number of inventory items ordered across all invoices.

c. A hash total of customer numbers from all sales invoices.
d. A sequence check on sales invoice numbers.

40
Q

An organisation is concerned about the possibility of sales to false and nonexistent customers being entered into its sales system by sales staff. The best control to prevent this problem would be:

a. calling a random sample of customers to ensure they exist.
b. having sales staff maintain a customer master file.
c. having a customer master file maintained independently of sales.
d. having a policy of making only in-store sales (e.g. having no phone or web-based orders).
e. proper screening of sales staff before hiring them.

A

An organisation is concerned about the possibility of sales to false and nonexistent customers being entered into its sales system by sales staff. The best control to prevent this problem would be:

a. calling a random sample of customers to ensure they exist.
b. having sales staff maintain a customer master file.

c. having a customer master file maintained independently of sales.

d. having a policy of making only in-store sales (e.g. having no phone or web-based orders).
e. proper screening of sales staff before hiring them.

41
Q

What is the most common risk when inputting data into the system?

a. Entering inaccurate or invalid data.
b. Privacy and security issues impacting the treatment of outputs.
c. Access to the output.
d. Maintenance of secure storage systems.

A

What is the most common risk when inputting data into the system?

*a. Entering inaccurate or invalid data.

b. Privacy and security issues impacting the treatment of outputs.
c. Access to the output.
d. Maintenance of secure storage systems.

42
Q
A
43
Q

Which of the following is not a type of controls classified in the Australian Auditing Standard ASA 315?

a. Authorisation.
b. Performance review.
c. Risk control.
d. Segregation of duties.

A

Which of the following is not a type of controls classified in the Australian Auditing Standard ASA 315?

a. Authorisation.
b. Performance review.

*c. Risk control.

d. Segregation of duties.

44
Q

A company wants all sales orders over $1000 to be authorised by the sales manager. Are the procedures covering this, an example of computer or human controls?

a. Human.
b. Computer.
c. Human followed by computer.
d. Computer followed by human.

A

A company wants all sales orders over $1000 to be authorised by the sales manager. Are the procedures covering this, an example of computer or human controls?

a. Human.
b. Computer.
c. Human followed by computer.

*d. Computer followed by human.

45
Q

To minimise the possible negative impact brought about by unexpected transactions, an organisation should:

a. ask designers of a control system to predict every possible outcome and every future event.
b. place a strong emphasis on ethical and responsible behaviour.
c. ask external auditors to audit their internal control system.
d. refuse to carry out unexpected transactions.

A

To minimise the possible negative impact brought about by unexpected transactions, an organisation should:

a. ask designers of a control system to predict every possible outcome and every future event.

*b. place a strong emphasis on ethical and responsible behaviour.

c. ask external auditors to audit their internal control system.
d. refuse to carry out unexpected transactions.

46
Q
A
47
Q

An example of an output control in a payroll system may be that:

a. only the HR manager can change an employee’s rate of pay.
b. only an employee with a valid employee number and password can request a summary of wages received over the past month.
c. only the payroll clerk can enter payroll details each month.
d. only the payroll clerk can process payments made to employees.

A

An example of an output control in a payroll system may be that:

a. only the HR manager can change an employee’s rate of pay.

*b. only an employee with a valid employee number and password can request a summary of wages received over the past month.

c. only the payroll clerk can enter payroll details each month.
d. only the payroll clerk can process payments made to employees.

48
Q

Which of the following is the strongest password?

a. ah@123re$d
b. Nik890102336757099924PoT
c. A_d33erZb#4G
d. Qwertyuiopasdfghjklzxcvbnm1234567890

A

Which of the following is the strongest password?

a. ah@123re$d
b. Nik890102336757099924PoT

*c. A_d33erZb#4G

d. Qwertyuiopasdfghjklzxcvbnm1234567890

49
Q

Information processing controls are those that are put in place within the organisation to work towards the ____________ of transactions.

a. efficiency, effectiveness and accuracy
b. timeliness, efficiency and completeness
c. accuracy, completeness and authorisation
d. authorisation, processing accuracy

A

Information processing controls are those that are put in place within the organisation to work towards the ____________ of transactions.

a. efficiency, effectiveness and accuracy
b. timeliness, efficiency and completeness

*c. accuracy, completeness and authorisation

d. authorisation, processing accuracy

50
Q

With respect to the recording of transactions, which of the following statements is true?

a. Proper recording of transactions is essentially about completeness.
b. Proper recording of transactions is essentially about accuracy.
c. Proper recording of transactions is essentially about storing data in only one place.
d. None of the options is correct.

A

With respect to the recording of transactions, which of the following statements is true?

a. Proper recording of transactions is essentially about completeness.

*b. Proper recording of transactions is essentially about accuracy.

c. Proper recording of transactions is essentially about storing data in only one place.
d. None of the options is correct.

51
Q
A
52
Q

Which aspect of document collection are pre-numbered documents used to establish?

a. Input data is accurate.
b. Data from source documents are recorded in a timely manner.
c. All source documents are accounted for.
d. All source documents have been authorised.

A

Which aspect of document collection are pre-numbered documents used to establish?

a. Input data is accurate.
b. Data from source documents are recorded in a timely manner.

*c. All source documents are accounted for.

d. All source documents have been authorised.

53
Q

Which of the following statements concerning passwords is true?

a. Strong passwords are not required to be changed periodically.
b. As long as a strong password is devised, it can be as the password to multiple accounts of a single user.
c. A good control system should force users to change their password periodically.
d. For the sake of convenience and efficiency, users should select simple easy to remember passwords.

A

Which of the following statements concerning passwords is true?

a. Strong passwords are not required to be changed periodically.
b. As long as a strong password is devised, it can be as the password to multiple accounts of a single user.

*c. A good control system should force users to change their password periodically.

d. For the sake of convenience and efficiency, users should select simple easy to remember passwords.

54
Q

The system documentation tool that is most useful for documenting controls is:

a. process map.
b. structured narrative.
c. logical data flow diagram.
d. system flowchart.

A

The system documentation tool that is most useful for documenting controls is:

a. process map.
b. structured narrative.
c. logical data flow diagram.

*d. system flowchart.

55
Q

Authorisation in a computerised information system can be established through:

(i) user privileges.
(ii) user access rights.
(iii) restrictions on what different users are able to do within the system.
a. (i) (iii)
b. (ii) (iii)
c. (i) (ii)
d. (i) (ii) (iii)

A

Authorisation in a computerised information system can be established through:

(i) user privileges.
(ii) user access rights.
(iii) restrictions on what different users are able to do within the system.
a. (i) (iii)
b. (ii) (iii)
c. (i) (ii)

*d. (i) (ii) (iii)

56
Q

A “hot site” is:

a. a separate facility located close to the organisation’s usual premises but does not contain offices and the necessary equipment.
b. a separate facility located away from the organisation’s usual premises but does not contain offices and the necessary equipment.
c. a separate facility located close to the organisation’s usual premises and contains offices and the necessary equipment to get the business back up and running in the minimal amount of time after a disaster occurs.
d. a separate facility located away from the organisation’s usual premises and contains offices and the necessary equipment to get the business back up and running in the minimal amount of time after a disaster occurs.

A

A “hot site” is:

a. a separate facility located close to the organisation’s usual premises but does not contain offices and the necessary equipment.
b. a separate facility located away from the organisation’s usual premises but does not contain offices and the necessary equipment.
c. a separate facility located close to the organisation’s usual premises and contains offices and the necessary equipment to get the business back up and running in the minimal amount of time after a disaster occurs.

*d. a separate facility located away from the organisation’s usual premises and contains offices and the necessary equipment to get the business back up and running in the minimal amount of time after a disaster occurs.

57
Q

Internal controls are necessary for all businesses because:

a. business processes do not always go to plan.
b. employees are basically corrupt.
c. financial statements only contain assertions.
d. external auditors insist on them.

A

Internal controls are necessary for all businesses because:

*a. business processes do not always go to plan.

b. employees are basically corrupt.
c. financial statements only contain assertions.
d. external auditors insist on them.

58
Q

A cash disbursement clerk issues a cheque that has been approved by the treasurer. This is an example of:

a. separating record-keeping from asset custody.
b. separating transaction processing to transaction authorisation.
c. separating asset custody from transaction processing.
d. separating transaction authorisation from record-keeping.

A

A cash disbursement clerk issues a cheque that has been approved by the treasurer. This is an example of:

a. separating record-keeping from asset custody.

*b. separating transaction processing to transaction authorisation.

c. separating asset custody from transaction processing.
d. separating transaction authorisation from record-keeping.

59
Q

Which of the following is also considered threats to internal controls?

a. Management incompetence.
b. Employee turnover.
c. The complexity of organisational structure.
d. All of the options are correct.

A

Which of the following is also considered threats to internal controls?

a. Management incompetence.
b. Employee turnover.
c. The complexity of organisational structure.

*d. All of the options are correct.

60
Q

In terms of disaster recovery, organisations’ reaction to the threat of disaster can be:

a. detective or preventive.
b. preventive or corrective.
c. detective or corrective.
d. preventive, detective and corrective.

A

In terms of disaster recovery, organisations’ reaction to the threat of disaster can be:

a. detective or preventive.

*b. preventive or corrective.

c. detective or corrective.
d. preventive, detective and corrective.

61
Q
A
62
Q
A
63
Q

What are the main activities performed during the first COBIT 5 application control (AC1)?

a. Source documents should be prepared and authorised by appropriately qualified employees using established procedures.
b. Qualified employees should ensure the timely data entry of transactions.
c. Integrity and validity of the data should be maintained throughout the processing cycle.
d. Procedures and associated responsibilities should be established to ensure that output is handled in an authorised manner.

A

What are the main activities performed during the first COBIT 5 application control (AC1)?

*a. Source documents should be prepared and authorised by appropriately qualified employees using established procedures.

b. Qualified employees should ensure the timely data entry of transactions.
c. Integrity and validity of the data should be maintained throughout the processing cycle.
d. Procedures and associated responsibilities should be established to ensure that output is handled in an authorised manner.

64
Q

Advantages of computer-based controls include all of the following except:

a. consistent application.
b. timely execution.
c. a greater degree of difficulty in working around or avoiding the control.
d. handling one-off events.

A

Advantages of computer-based controls include all of the following except:

a. consistent application.
b. timely execution.
c. a greater degree of difficulty in working around or avoiding the control.

*d. handling one-off events.

65
Q

A computer virus is found in a file in the computer system. Because a solution for recovering the file is not yet available, the infected file is quarantined by the antivirus software. Quarantining the infected file is an example of:

a. preventive control.
b. detective control.
c. corrective control.
d. none of the options is correct.

A

A computer virus is found in a file in the computer system. Because a solution for recovering the file is not yet available, the infected file is quarantined by the antivirus software. Quarantining the infected file is an example of:

*a. preventive control.

b. detective control.
c. corrective control.
d. none of the options is correct.

66
Q

A purchase order is entered into a computer purchasing system. The purchase is for $25 000 and has been entered by the purchasing clerk. Company policy dictates that purchases over $2000 must be entered by the purchasing manager. This is an example of a breach of controls relating to:

a. timeliness.
b. input accuracy.
c. input validity.
d. authorisation.

A

A purchase order is entered into a computer purchasing system. The purchase is for $25 000 and has been entered by the purchasing clerk. Company policy dictates that purchases over $2000 must be entered by the purchasing manager. This is an example of a breach of controls relating to:

a. timeliness.
b. input accuracy.
c. input validity.

*d. authorisation.

67
Q

Checking customer details before finalising a sales order is an example of a ________ control.

a. input
b. general
c. processing
d. performance

A

Checking customer details before finalising a sales order is an example of a ________ control.

*a. input

b. general
c. processing
d. performance

68
Q
A

AFM275 MCQs (11 decks)

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