Deck 9: Controlling Information Systems: Business Process and Application Controls

Question 1

Written approval takes the form of a signature or initials on a document to indicate that the proper person has authorized the event.

Answer 1

True

Question 2

A variation of the limit check is the reasonableness check.

Answer 2

True

Question 3

Specifying control goals is the first step in preparing a control matrix.

Answer 3

True

Question 4

In the control matrix M-1 stands for missing process number one.

Question 5

Control redundancy addresses whether too many control plans are directed toward the same control goal.

Question 6

Dollar totals represent a summarization of any numeric data field within the input document or record.

Question 7

The purpose of security controls is to ensure that entity resources are protected from loss, destruction, disclosure, copying, sale, or other misuse.

Question 8

The edit that compares calculations performed manually to those performed by the computer to determine if a document has been entered correctly is referred to as mathematical accuracy checks.

Question 9

Control effectiveness addresses how individual control plans achieve multiple control goals.

Question 10

A control matrix is a tool that assists in evaluating the potential effectiveness of control goals in a particular business process.

Question 11

In a control matrix P-1 stands for process number one.

Question 12

Input control goals include those to ensure input validity, input completeness and input accuracy.

Question 13

Online prompting helps guide the online entry of data by defining the acceptable length and format of certain fields.

Question 14

The most error-prone and inefficient steps in an operations or information process is master file updates.

Question 15

Control efficiency addresses whether control goals are being achieved.

Question 16

A check digit is an extra digit that is added to the identification number of entities to help control the accuracy with which the number is entered into a computer system.

Question 17

A control plan in which a source document is designed to make it easier to prepare the document initially and later to input data from the document into a computer or other input device is called document design.

Question 18

Programmed edit checks are edits automatically performed by data entry programs upon entry of the input data.

Question 19

Confirm input acceptance is a control that helps ensure input completeness by informing the user that the input has been accepted for processing.

Question 20

With preformatted screens a computer system asks the user for input or asks questions that the user must answer.

Question 21

The purpose of ____ control goals is to ensure the successful accomplishment of the goals set forth for the operations process under consideration.

A) efficiency
B) effectiveness
C) security
D) input

Question 22

In order to implement a batch sequence check transactions must be captured on documents that are randomly numbered.

Question 23

Dollar totals are a summarization of the dollar value of items in the batch.

Question 24

The control plan called key verification is designed to reduce the possibility that data will be misread or miskeyed during data entry.

Question 25

A digital signature tests whether the contents of two or more data fields bear the correct logical relationship.

Question 26

A summation of the dollar value of items in a batch is called a hash total.

Question 27

A tickler file is a manual or computer file of documents that contain completed business data.

Question 28

Master data control plans regulate transaction processing by calculating control totals at various points in a processing run and subsequently comparing these totals.

Question 29

In a batch sequence check a computer program sorts the input documents into numerical order; checks the documents against the sequence number range; and reports missing, duplicate, and out-of-range data.

Question 30

The purpose of ____ control goals is to ensure that entity resources are protected from loss, destruction, disclosure, copying, sale, or other misuse.

A) efficiency
B) effectiveness
C) security
D) input

Question 31

A hash total is the general term to describe the summation of data that would not normally be totaled except for control purposes.

Question 32

A dependency check authenticates the identity of a message's sender and verifies the integrity of a transmitted message.

Question 33

An exception and summary report reflects the events that were accepted or rejected by the system.

Question 34

A turnaround document is a document that is printed as an output of multiple computer processes and is used to capture and input a previous transaction.

Question 35

Document/record counts are simple counts of the number of documents entered.

Question 36

The purpose of ____ control goals is to ensure that all resources used throughout the business process are being employed in the most productive manner.

A) efficiency
B) effectiveness
C) security
D) input

Question 37

Batch control plans regulate information processing by calculating control totals at various points in a processing run and subsequently comparing those totals.

Question 38

The two primary steps in preparing the control matrix include:

A) specifying control goals, identifying recommended control plans
B) specifying control plans, specifying input goals
C) specifying the control environment, identifying information process goals
D) specifying control procedures, identifying process goals

Question 39

The cumulative sequence check provides input control in those situations in which the serial numbers are assigned within the organization but are not entered in perfect serial number sequence.

Question 40

A count of the number of invoices being paid by all of the customer remittances is a type of batch control total called an item or line count.

Question 41

A written approval in the form of a signature or initials on a document indicating that a person has authorized the event is directed primarily at achieving the control goal of:

A) ensure input validity
B) ensure input completeness
C) ensure input accuracy
D) ensure update accuracy

Question 42

In the control matrix, the rows represent:

A) control goals of the operations process
B) recommended control plans including both present and missing controls
C) control goals of the information process
D) control goals of the management process

Question 43

Which of the following is a control plan that controls the entry of data by defining the acceptable format of each data field?

A) document design
B) written approval
C) preformatted screens
D) online prompting

Question 44

Having too many control plans directed at the same control goal is called:

A) control efficiency
B) control effectiveness
C) control redundancy
D) control completeness

Question 45

The purpose of input control goals is to ensure:

A) input validity, input completeness, and input accuracy
B) update completeness and update accuracy
C) both a. and b.
D) none of the above

Question 46

A control that can be used to reduce the likelihood of an error occurring when an account number is entered into a computer is:

A) check digit
B) data encryption
C) preformatted screens
D) reasonableness checks

Question 47

Entity resources that are always considered in efficiency assessments for an AIS are:

A) cash and equipment
B) inventory and cash
C) people and computers
D) fixed assets and inventory

Question 48

Before a completed input screen is recorded the data entry clerk is asked if the data should be accepted. This is which control plan?

A) online prompting
B) mathematical accuracy check
C) preformatted screen
D) confirm input acceptance

Question 49

In a control matrix, the coding M-1 means:

A) a major control plan
B) a missing control plan
C) process 1 is missing
D) none of the above

Question 50

Which of the following control plans is designed to achieve the goal of input completeness?

A) key verification
B) confirm input acceptance
C) programmed edit check
D) written approvals

Question 51

Which of the following is a control plan in which the source document is designed to make it easier to input data from the document?

A) document design
B) written approval
C) preformatted screens
D) online prompting

Question 52

In a control matrix the coding P-1 means:

A) process 1
B) process 1 is present
C) process 1 is missing
D) none of the above

Question 53

Which of the following is a control plan that takes the form of signatures or initials on a document to indicate that a person has authorized the event?

A) document design
B) written approval
C) preformatted screens
D) online prompting

Question 54

The most error-prone and inefficient steps in an operations or information process is:

A) report generation
B) master data update
C) data entry
D) none of the above

Question 55

Which of the following reflects a summarization of any numeric data field within the input document or record?

A) reasonableness check or limit check
B) document/record hash totals
C) mathematical accuracy check
D) check digit

Question 56

Which of the following is a control plan that requests user input or asks questions that the user must answer?

A) document design
B) written approval
C) preformatted screens
D) online prompting

Question 57

Which of the following control plans is not directed primarily at the control goal of input accuracy?

A) document design
B) written approvals
C) preformatted screens
D) online prompting

Question 58

The columns in a control matrix contain headings listing the business process:

A) control goals
B) control plans
C) control environment
D) control procedures

Question 59

A control that can be used to ensure that all of the characters of a social security number are entered by a data entry clerk is:

A) dependency check
B) procedures for rejected inputs
C) preformatted screens
D) turnaround documents

Question 60

Which of the following compares manual calculations to computer calculations?

A) reasonableness check or limit check
B) document/record hash totals
C) mathematical accuracy check
D) check digit

Question 61

Digital signatures address all of the following control goals except:

A) ensure security of resources
B) ensure input completeness
C) ensure input validity
D) ensure input accuracy

Question 62

Which of the following types of batch totals is likely to be most effective in ensuring the control goal of input accuracy?

A) line counts
B) document/record counts
C) item counts
D) hash totals

Question 63

A sales representative enters the customer's account number and the system retrieves certain data about the customer from master data. This control plan addresses all of the control goals except:

A) ensure efficient employment of resources
B) ensure effectiveness of operations (timeliness)
C) ensure input accuracy
D) ensure update completeness

Question 64

A control that is primarily directed at ensuring input validity is:

A) written approvals
B) programmed edit checks
C) confirm input acceptance
D) online prompting

Question 65

Which of the following control plans is designed both to authenticate a system user's identity and to verify the integrity of a message transmitted by that user?

A) coding schemes
B) digital signature
C) preformatted screens
D) check digit

Question 66

A control in which two people key the same inputs into a system where they are compared is called:

A) online prompting
B) key verification
C) computer matching procedures
D) a redundancy check

Question 67

Which of the following is not a programmed edit check?

A) online prompting
B) check digit
C) mathematical accuracy check
D) limit checks

Question 68

A control report generated by a system that shows data about transactions that were accepted or rejected during a transaction processing step is called a(n):

A) violation report
B) exception and summary report
C) variance report
D) program change log

Question 69

Online prompting is aimed primarily at ensuring which of the following information systems control goals?

A) ensure input accuracy
B) ensure input completeness
C) ensure security of resources
D) ensure update completeness

Question 70

A control whose primary purpose is to ensure greater input accuracy is:

A) written approvals
B) preformatted screens
C) confirm input acceptance
D) all of these ensure greater input accuracy

Question 71

Inputting a range of numbers comprising a batch and then inputting each serially numbered document is characteristic of the control plan called:

A) cumulative sequence check
B) batch sequence check
C) suspense file of missing numbers
D) computer agreement of batch totals

Question 72

Which of the following activities is not part of the computer agreement of batch totals?

A) a batch total is manually established and entered into the computer prior to data entry.
B) data shown on source documents are key entered or scanned.
C) the computer produces a report that includes a batch total.
D) a person reconciles the manual and computer batch totals.

Question 73

Which batch control total generally has no other purpose than control?

A) dollar totals
B) record counts
C) hash totals
D) item counts

Question 74

When they are sent to a customer and returned with the payment, remittance advices are examples of:

A) batch control totals
B) computer-prepared documents
C) written approval controls
D) turnaround documents

Question 75

Not knowing whether input data has been accepted by the information system, the user enters the data again, resulting in duplicate event data. The control plan that helps to prevent this error is:

A) key verification
B) confirm input acceptance
C) check digit
D) online prompting

Question 76

Which of the following control plans is designed to achieve the goal of input accuracy?

A) key verification
B) confirm input acceptance
C) batch sequence check
D) cumulative sequence check

Question 77

Which of the following is a batch control total that represents the minimum level of control for input completeness?

A) dollar totals
B) document/record counts
C) hash totals
D) item counts

Question 78

All of the following are types of programmed edit checks except:

A) a proximity check
B) a document/record hash total
C) a mathematical accuracy check
D) a reasonableness check

Question 79

Which of the following controls requires that documents be numbered sequentially or prenumbered before it can be implemented?

A) completeness check
B) sequence check
C) batch total matching
D) key verification

Question 80

A summation of customer account numbers taken from a batch of sales invoices would be classified as a:

A) record count
B) line count
C) dollar total
D) hash total