Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

ACC 340 > Exam 5 > Flashcards

Exam 5 Flashcards

1
Q

Identification of Control Activities: Principle 10

A

recognizes that a major task for an organization is to identify what control activities are desirable for that particular organization .

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Identification of Control Activities: Principle 12

A

discusses the importance of developing policies and procedures to ensure control activities are in place and working .

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Isolation

A

Data, programs, documentation, and information processing facilities should be isolated to protect them from potential hazards (e.g., unauthorized access), and access privileges should be restricted and monitored.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Redundancy

A

Backup copies of programs and data should be made for security reasons. Critical computations should be repeated as a check on accuracy.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Comparison

A

Comparisons between data provide a check on accuracy and may signal problems to be investigated.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Assistance

A

Control problems often result from the inability to handle a job, inadequate training, and lack of ongoing guidance.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Oversight

A

Supervision of employees, internal audits, and external audits encourage careful work and reduce the likelihood that inappropriate activity will occur. Independent reconciliation and verification activities support this concept.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Accountability

A

Holding employees accountable for their actions promotes compliance with established control activities (e.g., performance/operating reviews). This also encourages careful work.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Automated Controls

A

Controls programmed into computer software.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Manual Control Procedures

A

are weaker in that even in the best control environment, human behavior lacks consistency.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Control Activities

A

Cannot provide absolute assurance that all risks will be eliminated.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Preventive Controls

A

A control that deals with or stops potential problems through the controls in place.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Detective Control

A

A control that provides feedback regarding violations of controls in place.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Corrective Control

A

A control that remedies a control violation after it has been detected.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

AU 314 Appendix Classification scheme

A

Performance reviews
Physical controls
Segregation of duties
Information processing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Performance reviews

A

Timely performance reviews act as detective control and corrective control.
Used to mitigate risks, reduce costs, reduce customer complaints by responding via social media.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Physical Controls

A

Devices and measures that protect computer hardware and other assets, such as cash, inventories, securities, fixed assets, mechanical check signers, and signature plates.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Segregation of Duties

A

A control activity in which authorization of transactions, custody of related assets, and modification or creation of related data and program files (or paper-based records) are segregated so that a single individual cannot both perpetrate and conceal an error or inappropriate activity.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Enforcing vacation

A

Employees are forced to take vacation days so that one person does not always work on the same task. It is to avoid errors and inappropriate actions.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Cryptography

A

The process of transforming, or encrypting, data (usually by scrambling) into a “secret code.”

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Encryption

A

A process, typically involving a mathematical encryption algorithm and an encryption key that scrambles data to prevent unauthorized persons from accessing the data.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Digital Signature

A

Extra data appended to an electronic message which identifies and authenticates the sender.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Repuidation

A

A customer’s denial that an order was placed for goods or services from a vendor.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Digital Certificate

A

A form of electronic identification that is issued by a certification authority (CA) after the CA verifies the company participating in e-commerce activities is legitimate.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
The secure Sockets Layer (The SSL)
protocol, represented by a small lock in the lower right hand corner of a webpage is currently the most commonly accepted protocol used by web browsers to protect sensitive data in transit.
26
Transmission medium for mobile devices and networks
Because fiber-optic cable carries signals as light waves rather than as electrical impulses, it provides better access security than other types of cable.
27
Automatic Log off
The disconnection of a workstation from a file server or host computer if there has been no activity for a given period of time.
28
Fire Suppression systems
Computer equipment is subject to damage should there be a fire in the data center. Fire is a major threat to the electrical equipment, so it is essential to protect the data center from this hazard. Fire extinguishers should be available (water-based and gas-based), and easily accessible. There should be equipment to provide early warning of a fire that is heard in an area that has continuous occupation by employees. These systems should be inspected and tested on a regular basis.
29
Environmental Control
Computer equipment is also sensitive to temperature and humidity. There should be environmental systems in place to control the temperature and humidity within a certain range. Typically, the range for temperature is between 18 and 21° C (65–70° F) and preferred humidity ranges between 45 and 55%.
30
Backup Controls
All files should be backed up routinely, and the backup copies should be stored in a secure, off-site location and tested regularly for readability. The backup medium should also minimize cost.
31
Downtime Controls
The repair of computer hardware may take several days and, occasionally, several weeks. Therefore, to reduce the amount of downtime, maintenance schedules should be established for all computer hardware. Conformity with these schedules should be checked routinely. Provision also must be made for emergency repairs to minimize nonproductive downtime.
32
Recovery Controls
Recovery controls deal with prompt recovery from equipment failure (such as controller failure, electrical failure, or media/head crashes) and natural disasters (such as flood, lightning, fire, earthquake, or hurricane) that could put the information processing facilities out of operation for an extended period.
33
Automatic Roll back
When a running program prematurely terminates, it cannot be restarted until associated records and files are returned to their original condition. A database management system has a feature called automatic rollback in which incomplete transactions are backed out so the database is returned to the state it was in before the transaction began.
34
Disaster Recovery Plan
A plan that documents detailed recovery procedures in the event of equipment failure or disasters to quickly and smoothly restore an organization’s processing capabilities.
35
Steering Committee
A steering committee establishes or approves information processing policies and operating standards, approves system projects, sets priorities for implementing systems, evaluates the effectiveness of processing operations, and generally monitors and evaluates information processing activities.
36
Input Controls
Control activities that deal with the authorization, entry, and verification of data entering the system.
37
Verification Controls
Programmed edit and validation routines that verify the correctness of entered data. They test for valid codes, reasonableness of amounts, valid data type (numeric, alphanumeric), valid field length, logical relationships, anticipated contents, and valid date.
38
Check Digit
A single digit appended to a number to validate the number. The digit is computed from the other digits in the number itself.
39
Record Count
A count made at different points in the system—if the count remains the same, this indicates the same total records are in the batch. This count helps guard against the accidental loss of records. However, by itself the control does not necessarily confirm that the same records are present.
40
Control Total
The sum of an amount or quantity field contained in the transaction records, such as the sum of all the net amounts due in a batch of invoices. Control totals are used to ensure that as a batch progresses through the various processing stages, it contains the same set of records.
41
Output Controls
Control activities that relate to providing output to the appropriate people and using the output appropriately.
42
Master file maintenance Controls
Control activities designed into the master file maintenance function, which is used to add records, change the contents of certain fields in records, and delete records.
43
Test Data
A technique for auditing through the computer where the auditor uses hypothetical transactions to audit the programmed controls and logic.
44
Parallel Simulation
A technique for auditing through the computer where the auditor attempts to simulate or duplicate the firm’s output using another computer program to test actual data and compares the results to those produced by the firm’s computer system.
45
Integrated test facility
A technique for auditing through the computer where the auditor uses artificial data to test how well the AIS performs its tasks.
46
Embedded audit module
A module that is actually inserted into an application program to monitor and collect data based on transactions.
47
Cybersecurity
How a company protects its information assets (e.g., data, human resource information, financial information, proprietary information). Threats to the security of the assets can come from within the company or from outside the company.
48
Personally identifiable information (PII)
Information, such as credit card information, that can be used to identify a person. Cybercriminals compromise/steal information to impersonate someone else and use that information to open unauthorized accounts and credit cards.
49
Which of the following controls would be most effective in assuring the proper custody of unissued checks?
The balances in the check disbursements transaction log are periodically compared with the copies of checks issued by independent personnel.
50
If a total were to be computed on each of the following data items, which would best be identified as a hash total for a payroll application?
Department numbers
51
To access data and program files, what should users be required to enter?
A personal identification number
52
Segregation of duties stops which of the following from happening?
One person can add/delete customer accounts and handle the normal data entry of sales. b. One person can maintain the cash account and reconcile the cash account. c. One person can perpetuate and conceal errors and inappropriate activities.
53
Which of the following are general controls?
Disaster Recovery Plan
54
Self-checking digits are used to detect which of the following errors?
Transposing a vendor code
55
Transaction Set
The complete format specifications for any EDI document are known as a transaction set. Examples: Purchase order, invoice, Sales tax return, etc.
56
EDI protocol and standards
EDI standards are set under the supervision of the American National Standards Institute (ANSI) domestically and the United Nations internationally.
57
Value Added Network
A VAN is a service provider that expedites the delivery of electronic documents over a private network.
58
Functions of VAN
■ Provide implementation and continuing support for new EDI users ■ Accept EDI transmissions to outside parties and store them ■ Deliver EDI transmissions when requested by intended recipients ■ Translate the transmissions from the sender’s format to that of the recipient, if necessary ■ Guarantee security and reliability
59
Internet EDI
A much cheaper way to transport messages using EDI standards is to replace VANs with Internet service providers. Used This subgroup is called EDIINT for Electronic Data Interchange-Internet Integration to protect delivery and sender of the message and privacy.
60
Inventory process
The inventory process of mercantile organizations, although not as complex as that of manufacturers, is one of the most complex processes in an organization.
61
Periodic inventory
you rely on periodic physical inventory counts to calculate an overall cost of goods sold amount.
62
COGS
Merchandise Inventory, beginning balance Plus Merchandise Purchases (net of returns, allowances, and/or discounts) Less Merchandise Inventory, ending balance Equals Cost of Goods Sold
63
SCM
A system that allows an organization to connect the chain of manufacturers, distributors, and retailers in managing inventory planning and flow throughout the supply chain.
64
SCM performs tasks such as:
■ Systematize the location and production capabilities of factories and distribution centers ■ Unify worldwide inventory management and order fulfillment ■ Optimize the global supply chain ■ Integrate tax efficiency into the global planning process
65
EDI in SCM
Two contributions of EDI to supply chain management should be obvious at this point—(1) the elimination of the expense of purchasing, handling, and mailing paper documents and (2) efficiencies gained by avoiding data entry of incoming documents.
66
RFID
Considered the “next generation of barcodes,” RFID is a code that identifies not only a class or type of product but also an individual product as it moves along the supply chain and ends up in the possession of an individual.
67
Outsourcing
Transferring a non-core activity (or activities) to a third-party service provider.
68
Service level agreement
A document that is key to protecting an organization who outsources a good or service. The SLA can include things like specifications of deliverables required from the third-party service provider.
69
Automatic pricing
A feature in the inventory module in which pricing formulas are stored so that when the cost of an item changes, the selling price is automatically recalculated.
70
Lead time
The period of time between the ordering of inventory and its receipt from a vendor.
71
Lead time stock
The number of units of inventory that covers sales of inventory during lead time without encroaching on the safety stock.
72
Safety Stock
The quantity of inventory that is necessary to avoid the loss of sales due to stockouts.
73
Reorder Point
The sum of the safety stock and the lead time stock.
74
Holding Costs
Costs associated with maintaining and storing inventory.
75
Stockout Costs
The contribution margin lost on sales due to stockouts
76
Free Stock
The stock available for sale after consideration of stock committed to customers.
77
The economic order quantity is equal to the maximum stocking level less:
safety stock.
78
Lead-time stock is:
lead time in days multiplied times the sales rate per day.
79
The type of entry you always expect to find in the inventory transaction file is one recording:
adjustments to inventory balances.
80
The purpose of the excess inventory report is to call management’s attention to:
all inventory items for which the on hand plus on order less committed stock is greater than the safety stock plus the EOQ by a material dollar value.
81
The purpose of the inventory turnover report is to:
reveal obsolete inventory.
82
Big data
The voluminous amount of data that is generated every day by all of us through Internet access, mobile device use, and other means.
83
Volunteered Data
Data individuals choose to provide on platforms such as social media.
84
Observed Data
Data captured through recording geo-location or activity on websites.
85
Inferred Data
Data gathered based on combinations of volunteered or observed data (e.g., a credit rating).
86
Structured Data
refers to data such as numbers and text that are formatted for use in relational databases and spreadsheet analysis.
87
Unstructured Data
Data such as videos, audio recordings, and photos, which cannot be easily formatted for use with traditional analysis tools such as spreadsheets.
88
Semi-Structured Data
Data that are somewhat unstructured but provide context for analysis; for example, data that have been tagged with XML for reporting purposes.
89
Predictive Analysis
The process of harnessing the power of big data to predict trends and behavior such as buying patterns or potential insider threats.
90
Prescriptive analytics
Using big data to prescribe solutions to issues noted by predictive analysis.
91
Benefits of using big data
■ Better planning and prediction results. ■ Ability to target the marketing of products to their current and potential customers. ■ Increased customer loyalty and customer satisfaction from being able to respond quickly to customer feedback and suggestions. ■ Operational efficiency improvements that encourage innovation and lead to better-informed business decisions. ■ Agility in responding to changes in the market because of a company’s ability to act on market demand predictions in near real-time.
92
De-identity
Eliminating personal identifiers in data to protect the individual or business.
93
Infrastructure-as-a-service (IaaS)
A cloud service offering the hosting of virtual machines and servers for clients, as well as client application support, data back up, and disaster recovery planning.
94
Platform-as-a-service (PaaS)
A cloud service that offers tools, which includes the operating system, for the client to configure their data storage and develop applications on the cloud provider’s servers.
95
Software-as-a-service (SaaS)
The most inclusive cloud service that comprises infrastructure, platforms, and applications (i.e., software) from the cloud service provider. The cloud provider handles all levels of computing for the client.
96
Benefit of using cloud
Flexibility and scaleability

ACC 340 (3 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions