Question 1

Name two examples of economy risk.

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The answer of Name two examples of economy risk....

Question 2

What kind of risk is a crisis involving a major business partner?

Accepted Answer

The answer of What kind of risk is a crisis...

Question 3

List two important control principles for business process risks related to all types of resources.

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The answer of List two important control principles for business...

Question 4

What type of risk is a mistake made in the advertising or promotions regarding a product available for sale?

Accepted Answer

The answer of What type of risk is a mistake...

Question 5

What is an independent check on performance?

Accepted Answer

The answer of What is an independent check on performance?...

Question 6

To what business process risk are economic increment events particularly susceptible, and why?

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The answer of To what business process risk are economic...

Question 7

Discuss the importance of an enterprise's control environment and describe each of the seven areas within the control environment.

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Question 8

Write the CAPITAL letter of the term from the list below that most closely matches each of the following definitions.
-compares entered data to a predetermined acceptable upper and/or lower limit.
A) E Access controls
B) Batch control totals
C) Check digit
D) Closed loop verification
E) Completeness check
F) Echo check
G) Encryption techniques
H) Field or mode check
I) Exposure
J) Lock out procedures
K) Master file
L) Master reference check
M) Range check
N) Referential integrity
O) Rekeying (key verification)
P) Sequence check
Q) Uninterruptible power source
R) Valid sign check

Accepted Answer

A range check is used to ensure that entered data falls within a specified range of acceptable values, comparing it to predetermined upper and lower limits.

Question 9

Write the CAPITAL letter of the term from the list below that most closely matches each of the following definitions.
-verifies that the entered data type is appropriate for a field (e.g. date, numeric, text)
A) E Access controls
B) Batch control totals
C) Check digit
D) Closed loop verification
E) Completeness check
F) Echo check
G) Encryption techniques
H) Field or mode check
I) Exposure
J) Lock out procedures
K) Master file
L) Master reference check
M) Range check
N) Referential integrity
O) Rekeying (key verification)
P) Sequence check
Q) Uninterruptible power source
R) Valid sign check

Accepted Answer

A field or mode check ensures that the data entered is of the correct data type for a specific field, such as ensuring a date field contains a date.

Question 10

Write the CAPITAL letter of the term from the list below that most closely matches each of the following definitions.
-uncontrolled risk
A) E Access controls
B) Batch control totals
C) Check digit
D) Closed loop verification
E) Completeness check
F) Echo check
G) Encryption techniques
H) Field or mode check
I) Exposure
J) Lock out procedures
K) Master file
L) Master reference check
M) Range check
N) Referential integrity
O) Rekeying (key verification)
P) Sequence check
Q) Uninterruptible power source
R) Valid sign check

Accepted Answer

Exposure refers to the potential for loss or damage when a risk is not controlled or managed effectively.

Question 11

Write the CAPITAL letter of the term from the list below that most closely matches each of the following definitions.
-applies a formula to an account number, and if an expected sum is derived, gives some assurance that the number is valid
A) E Access controls
B) Batch control totals
C) Check digit
D) Closed loop verification
E) Completeness check
F) Echo check
G) Encryption techniques
H) Field or mode check
I) Exposure
J) Lock out procedures
K) Master file
L) Master reference check
M) Range check
N) Referential integrity
O) Rekeying (key verification)
P) Sequence check
Q) Uninterruptible power source
R) Valid sign check

Accepted Answer

A check digit is a form of redundancy check used for error detection on identification numbers, which is calculated using a formula applied to the account number.

Question 12

Write the CAPITAL letter of the term from the list below that most closely matches each of the following definitions.
-verifies that an event/transaction record entered for updating correctly matches the corresponding master file record
A) E Access controls
B) Batch control totals
C) Check digit
D) Closed loop verification
E) Completeness check
F) Echo check
G) Encryption techniques
H) Field or mode check
I) Exposure
J) Lock out procedures
K) Master file
L) Master reference check
M) Range check
N) Referential integrity
O) Rekeying (key verification)
P) Sequence check
Q) Uninterruptible power source
R) Valid sign check

Accepted Answer

A Master reference check ensures that an event/transaction record matches the corresponding master file record.

Question 13

Write the CAPITAL letter of the term from the list below that most closely matches each of the following definitions.
-restrict unauthorized access to the system itself, to physical devices, and to data in the system.
A) E Access controls
B) Batch control totals
C) Check digit
D) Closed loop verification
E) Completeness check
F) Echo check
G) Encryption techniques
H) Field or mode check
I) Exposure
J) Lock out procedures
K) Master file
L) Master reference check
M) Range check
N) Referential integrity
O) Rekeying (key verification)
P) Sequence check
Q) Uninterruptible power source
R) Valid sign check

Accepted Answer

Access controls restrict unauthorized access to the system itself, to physical devices, and to data in the system.

Question 14

Write the CAPITAL letter of the term from the list below that most closely matches each of the following definitions.
-are used to verify that all transactions within batches are processed
A) E Access controls
B) Batch control totals
C) Check digit
D) Closed loop verification
E) Completeness check
F) Echo check
G) Encryption techniques
H) Field or mode check
I) Exposure
J) Lock out procedures
K) Master file
L) Master reference check
M) Range check
N) Referential integrity
O) Rekeying (key verification)
P) Sequence check
Q) Uninterruptible power source
R) Valid sign check

Accepted Answer

Batch control totals are used to verify that all transactions within batches are processed correctly by comparing the total of the batch before and after processing.

Question 15

Write the CAPITAL letter of the term from the list below that most closely matches each of the following definitions.
-used by data base management systems to prevent two applications from updating the same record at the same time
A) E Access controls
B) Batch control totals
C) Check digit
D) Closed loop verification
E) Completeness check
F) Echo check
G) Encryption techniques
H) Field or mode check
I) Exposure
J) Lock out procedures
K) Master file
L) Master reference check
M) Range check
N) Referential integrity
O) Rekeying (key verification)
P) Sequence check
Q) Uninterruptible power source
R) Valid sign check

Accepted Answer

Lock out procedures are used by database management systems to prevent two applications from updating the same record at the same time, ensuring data integrity and consistency.

Question 16

Write the CAPITAL letter of the term from the list below that most closely matches each of the following definitions.
-the keying of input data twice, with the computer comparing the two entries and highlighting any discrepancies for correction
A) E Access controls
B) Batch control totals
C) Check digit
D) Closed loop verification
E) Completeness check
F) Echo check
G) Encryption techniques
H) Field or mode check
I) Exposure
J) Lock out procedures
K) Master file
L) Master reference check
M) Range check
N) Referential integrity
O) Rekeying (key verification)
P) Sequence check
Q) Uninterruptible power source
R) Valid sign check

Accepted Answer

Rekeying (key verification) involves entering data twice to ensure accuracy, with the system comparing both entries to identify and correct any discrepancies.

Question 17

Write the CAPITAL letter of the term from the list below that most closely matches each of the following definitions.
-a process of encoding data entered into a system, storing or transmitting the data in coded form and then decoding the data upon their use or arrival at their destination
A) E Access controls
B) Batch control totals
C) Check digit
D) Closed loop verification
E) Completeness check
F) Echo check
G) Encryption techniques
H) Field or mode check
I) Exposure
J) Lock out procedures
K) Master file
L) Master reference check
M) Range check
N) Referential integrity
O) Rekeying (key verification)
P) Sequence check
Q) Uninterruptible power source
R) Valid sign check

Accepted Answer

Encryption techniques involve encoding data for secure storage or transmission and decoding it upon use or arrival.

Question 18

Think of a local convenience store in your town. List at least three risks associated with this store's sale of merchandise to customers, and propose one or more internal controls that would mitigate those risks.

Accepted Answer

The answer of Think of a local convenience store in...

Question 19

Bartt's Boxes manufactures and distributes boxes of various sizes and strengths. They take mail and telephone orders from customers. They ship the boxes according to the customer orders and send monthly statements to the customers who pay on a monthly basis. What are at least three risks associated with Bartt's sales/collection process, and what are internal controls that would mitigate these risks?

Accepted Answer

The answer of Bartt's Boxes manufactures and distributes boxes of...

Question 20

Explain the grandparent-parent-child backup and file reconstruction procedure. Should this procedure be used for real-time processing systems? If not, what alternative procedure should be followed?

Accepted Answer

The answer of Explain the grandparent-parent-child backup and file reconstruction...

Quiz 14: Enterprise System Risks and Controls

Name two examples of economy risk.

What kind of risk is a crisis involving a major business partner?

List two important control principles for business process risks related to all types of resources.

What type of risk is a mistake made in the advertising or promotions regarding a product available for sale?

What is an independent check on performance?

To what business process risk are economic increment events particularly susceptible, and why?

Discuss the importance of an enterprise's control environment and describe each of the seven areas within the control environment.

Write the CAPITAL letter of the term from the list below that most closely matches each of the following definitions. -compares entered data to a predetermined acceptable upper and/or lower limit.

Write the CAPITAL letter of the term from the list below that most closely matches each of the following definitions. -verifies that the entered data type is appropriate for a field (e.g. date, numeric, text)

Write the CAPITAL letter of the term from the list below that most closely matches each of the following definitions. -uncontrolled risk

Write the CAPITAL letter of the term from the list below that most closely matches each of the following definitions. -applies a formula to an account number, and if an expected sum is derived, gives some assurance that the number is valid

Write the CAPITAL letter of the term from the list below that most closely matches each of the following definitions. -verifies that an event/transaction record entered for updating correctly matches the corresponding master file record

Write the CAPITAL letter of the term from the list below that most closely matches each of the following definitions. -restrict unauthorized access to the system itself, to physical devices, and to data in the system.

Write the CAPITAL letter of the term from the list below that most closely matches each of the following definitions. -are used to verify that all transactions within batches are processed

Write the CAPITAL letter of the term from the list below that most closely matches each of the following definitions. -used by data base management systems to prevent two applications from updating the same record at the same time

Write the CAPITAL letter of the term from the list below that most closely matches each of the following definitions. -the keying of input data twice, with the computer comparing the two entries and highlighting any discrepancies for correction

Write the CAPITAL letter of the term from the list below that most closely matches each of the following definitions. -a process of encoding data entered into a system, storing or transmitting the data in coded form and then decoding the data upon their use or arrival at their destination

Think of a local convenience store in your town. List at least three risks associated with this store's sale of merchandise to customers, and propose one or more internal controls that would mitigate those risks.

Explain the grandparent-parent-child backup and file reconstruction procedure. Should this procedure be used for real-time processing systems? If not, what alternative procedure should be followed?