Question 1

Which input control check would detect a posting to the wrong customer account?
A)missing data check
B)check digit
C)reasonableness check
D)validity check

Accepted Answer

The answer of Which input control check would detect a...

Question 2

Which statement is not correct?
A)The goal of batch controls is to ensure that during processing transactions are not omitted.
B)The goal of batch controls is to ensure that during processing transactions are not added.
C)The goal of batch controls is to ensure that during processing transactions are free from clerical errors.
D)The goal of batch controls is to ensure that during processing an audit trail is created.

Accepted Answer

Batch controls are not designed to ensure that transactions are free from clerical errors.

Question 3

Which of the following is an example of an input error correction technique?
A)immediate correction
B)rejection of batch
C)creation of error file
D)All are examples of input error correction techniques.

Accepted Answer

All three options listed (immediate correction, rejection of batch, creation of error file) are input error correction techniques. Immediate correction involves fixing errors as they are detected, rejection of batch involves refusing to process a batch if there are errors, and creation of an error file allows errors to be identified and corrected at a later time.

Question 4

The employee entered "40" in the "hours worked per day" field.Which check would detect this unintentional error?
A)numeric/alphabetic data check
B)sign check
C)limit check
D)missing data check

Accepted Answer

A limit check would detect if the number entered exceeds a reasonable limit for hours worked per day, such as 24 (since there are only 24 hours in a day). In this case, the value entered was 40, which exceeds this limit and would trigger an error. Other checks, such as numeric/alphabetic data check or missing data check, would not necessarily detect this error. A sign check would check if the value entered is positive or negative, which is not relevant in this case.

Question 5

Which of the following is an example of an input control test?
A)sequence check
B)zero value check
C)spooling check
D)range check

Accepted Answer

A range check is an input control test that verifies whether a value entered by a user falls within a specified range of values. For example, if a form asks for a user's age, a range check may be applied to ensure that an age value entered is within a reasonable range, like between 0 and 120 years old. Sequence checks, zero value checks, and spooling checks are not input control tests.

Question 6

An inventory record indicates that 12 items of a specific product are on hand.A customer purchased two of the items,but when recording the order,the data entry clerk mistakenly entered 20 items sold.Which check could detect this error?
A)numeric/alphabetic data checks
B)limit check
C)range check
D)reasonableness check

Accepted Answer

A limit check could detect this error by ensuring that the number of items sold does not exceed the number of items on hand.

Question 7

Which input control check would detect a payment made to a nonexistent vendor?
A)missing data check
B)numeric/alphabetic check
C)range check
D)validity check

Accepted Answer

A validity check verifies that data entered matches a pre-existing value or condition. In this case, the payment should only be made to an existing vendor, so a validity check would reveal if the payment was made to a nonexistent vendor.

Question 8

An example of a hash total is
A)total payroll checks-$12,315
B)total number of employees-10
C)sum of the social security numbers-12,555,437,251
D)all of the above

Accepted Answer

A hash total is a type of check digit used to ensure that data is accurately processed and transferred. It is calculated by summing a particular set of data, such as social security numbers, and then recording that total. Option C represents such a sum, making it the best choice for an example of a hash total. Options A and B are not suitable because they simply represent two different types of data without any meaningful calculations.

Question 9

Which of the following is an objective of batch controls?
A)to ensure that all transactions include transaction codes
B)to locate any fraudulent data in the batch
C)to coordinate run-to-run controls with batch controls
D)to reconcile system output with the data originally input into the system

Accepted Answer

Batch controls aim to ensure that the data processed matches the data entered, allowing for verification and reconciliation of system outputs with original inputs.

Question 10

Which of the following is correct statement about check digits?
A)Check digits should be used for all data codes.
B)Check digits must be placed at the end of a data code.
C)Check digits do not affect processing efficiency.
D)Check digits are designed to detect transcription and transposition errors.

Accepted Answer

Check digits are designed to detect errors like transcription and transposition errors in data codes. They are not necessary for all codes, but when used, they should be placed at the end, allowing for easy verification. Adding check digits may slightly affect processing efficiency, but the benefits of error detection outweigh this potential drawback.

Question 11

Supervision is often called a(n)____________ control.
A)access
B)verification
C)compensating
D)input

Accepted Answer

Supervision is often referred to as a compensating control because it helps to mitigate risks when primary controls are not sufficient or fail.

Question 12

Methods used to maintain an audit trail in a computerized environment include all of the following except
A)transaction logs
B)transaction listings
C)data encryption
D)log of automatic transactions

Accepted Answer

All of the other options listed (transaction logs, transaction listings, and log of automatic transactions) are methods commonly used to maintain an audit trail in a computerized environment. Data encryption, while important for security purposes, does not directly contribute to maintaining an audit trail.

Question 13

A computer operator was in a hurry and accidentally used the wrong master file to process a transaction file.As a result,the accounts receivable master file was erased.Which control would prevent this from happening?
A)header label check
B)expiration date check
C)version check
D)validity check

Accepted Answer

A header label check would prevent the use of the wrong master file by verifying the file's identity before processing, thus avoiding the accidental erasure of the accounts receivable master file.

Question 14

Which statement is not correct?
A)Only successful transactions are recorded on a transaction log.
B)Unsuccessful transactions are recorded in an error file.
C)A transaction log is a temporary file.
D)The transaction log and transactions in error files should account for all transactions in the batch.

Accepted Answer

A transaction log is not a temporary file, but rather a permanent record of all transactions that have occurred. It is crucial for tracking and auditing purposes.

Question 15

Run-to-run control totals can be used for all of the following except
A)to ensure that all data input is validated
B)to ensure that only transactions of a similar type are being processed
C)to ensure the records are in sequence and are not missing
D)to ensure that no transaction is omitted

Accepted Answer

Run-to-run control totals are used to ensure data integrity between processing steps, not for validating input data. Validation of data input is typically done through other means such as input controls, data type checks, and validation rules.

Question 16

Control weaknesses associated with creating an output file as an intermediate step in the printing process (spooling)include all of the following actions by a computer criminal except
A)gaining access to the output file and changing critical data values
B)using a remote printer and incurring operating inefficiencies
C)making a copy of the output file and using the copy to produce illegal output reports
D)printing an extra hardcopy of the output file

Accepted Answer

The other choices outline potential control weaknesses that could be exploited by a computer criminal in the spooling process. Option B, however, does not pose a significant risk in terms of control weaknesses associated with creating an output file as an intermediate step in the printing process. Using a remote printer may incur operating inefficiencies, but it is not a security breach or vulnerability.

Question 17

The correct purchase order number is 123456.Which of the following is an example of a transcription error?
A)1234567
B)12345
C)124356
D)123454

Accepted Answer

A transcription error occurs when the correct sequence of numbers or letters is altered, as seen in option C where the numbers 5 and 3 have been transposed.

Question 18

Which check is not an input control?
A)reasonableness check
B)validity check
C)spooling check
D)missing data check

Accepted Answer

Spooling check is not an input control. It is a process used in computer systems to manage and control the transfer of data between different devices, typically between a disk and a printer. Reasonableness check, validity check, and missing data check are all input controls used to ensure the accuracy and completeness of input data.

Question 19

Which of the following is not an issue to be addressed in a business code of ethics required by the SEC?
A)conflicts of interest
B)full and fair disclosures
C)equitable access to records by all classes of employees
D)internal reporting of code violations

Accepted Answer

Equitable access to records by all classes of employees is not typically included in a business code of ethics required by the SEC. However, conflicts of interest, full and fair disclosures, and internal reporting of code violations are common issues addressed in these codes.

Question 20

Which of the following is not an example of a processing control?
A)a hash total
B)a record count
C)a batch total
D)a check digit

Accepted Answer

A check digit is an example of an input control, which is used to ensure accurate data entry by verifying the correctness of a single data item or a sequence of data items. Hash totals, record counts, and batch totals are all examples of processing controls, which are used to ensure the completeness and accuracy of data processing during batch processing.

Quiz 3: Ethics,fraud,and Internal Control

Which input control check would detect a posting to the wrong customer account?

Which statement is not correct?

Which of the following is an example of an input error correction technique?

The employee entered "40" in the "hours worked per day" field.Which check would detect this unintentional error?

Which of the following is an example of an input control test?

An inventory record indicates that 12 items of a specific product are on hand.A customer purchased two of the items,but when recording the order,the data entry clerk mistakenly entered 20 items sold.Which check could detect this error?

Which input control check would detect a payment made to a nonexistent vendor?

An example of a hash total is

Which of the following is an objective of batch controls?

Which of the following is correct statement about check digits?

Supervision is often called a(n) ____________ control.

Methods used to maintain an audit trail in a computerized environment include all of the following except

A computer operator was in a hurry and accidentally used the wrong master file to process a transaction file.As a result,the accounts receivable master file was erased.Which control would prevent this from happening?

Which statement is not correct?

Run-to-run control totals can be used for all of the following except

Control weaknesses associated with creating an output file as an intermediate step in the printing process (spooling) include all of the following actions by a computer criminal except

The correct purchase order number is 123456.Which of the following is an example of a transcription error?

Which check is not an input control?

Which of the following is not an issue to be addressed in a business code of ethics required by the SEC?

Which of the following is not an example of a processing control?