Risk and Controls in Computer-Based

Question 1

What are the five elements in accounting systems?

Answer 1

People

Procedures

Hardware

Software

Data

Question 2

What does manual mean?

Answer 2

Instructions for users

Question 3

What are some differences between manual and computer controls?

Answer 3

1) Segregation of duties
2) Audit trail
3) Transaction processing
4) Computer initiated transactions
5) Risk of errors and defalcations
6) Management review

Question 4

What are some risks in computer-based systems

Answer 4

1) Reliance on faulty systems
2) Unauthorized changes in master files, systems, programs
3) Failure to make needed changes
4) Inappropriate intervention (by people)