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

Accepted Answer

Range check is an example of input control test where the system checks if the input falls within the acceptable range or values. For example, if a user is entering a phone number, the system may perform a range check to ensure that only 10 digits are entered. Option A is a type of completeness check, Option B is a validity check, and Option C is a type of output control test.

Question 3

Which of the following is correct?
A) check digits should be used for all data codes
B) check digits are always 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 transcription and transposition errors by adding an extra digit to a code that is based on the other digits in the code. This allows for the detection of errors if a digit is accidentally transposed or mistyped. Both A and B are incorrect, as check digits are not always necessary and can be placed in different positions within a data code. C is also incorrect, as adding a check digit may slightly affect processing efficiency.

Question 4

Risk exposures 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 three actions have potential to cause harm to the integrity, confidentiality or availability of the output file or the information it contains, but using a remote printer does not necessarily pose a risk in itself.

Question 5

Which statement is not true? A batch control record
A) contains a transaction code
B) records the record count
C) contains a hash total
D) control figures in the record may be adjusted during processing
E) All the above are true

Accepted Answer

The answer of Which statement is not true? A batch...

Question 6

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 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 the data entered in a field matches a predefined set of allowable values. In this case, the payment made to a nonexistent vendor violates the validity rule, as the vendor does not exist in the predefined list of allowable vendors.

Question 8

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

The answer of An inventory record indicates that 12 items...

Question 9

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

Accepted Answer

The answer of Which statement is not correct? The goal...

Question 10

The correct purchase order number,is123456.All of the following are transcription errors except
A) 1234567
B) 12345
C) 124356
D) 123454

Accepted Answer

The answer of The correct purchase order number,is123456.All of the...

Question 11

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

Data encryption is a security measure used to protect the confidentiality and integrity of data during storage and transmission. However, it does not directly contribute to maintaining an audit trail. The other options, transaction logs, transaction listings, and logs of automatic transactions, are all effective methods for creating and maintaining an audit trail in a computerized environment.

Question 12

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 compare the entered value (40) with the minimum and maximum allowed values for the field and would detect that it exceeds the reasonable limit for hours worked per day.

Question 13

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

Accepted Answer

Hash total, record count, and batch total are all examples of processing controls as they are used to ensure completeness and accuracy in processing large amounts of data. Check digit, on the other hand, is used as part of data input controls to ensure that data is entered accurately and error-free. Therefore, check digit is not an example of a processing control.

Question 14

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) none of the above

Accepted Answer

A hash total is a numeric value used to verify the accuracy and completeness of a set of data. Option C, which is the sum of the social security numbers, is an example of a hash total because it provides a numeric value that can be compared to a previously calculated or expected value to check for errors or discrepancies in the data. Options A and B are not examples of hash totals as they do not provide a numeric value to compare against.

Question 15

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) a hardcopy transaction listing is provided to users

Accepted Answer

A transaction log is a permanent file used for recording all transactions, including both successful and unsuccessful ones. The log is used for backup and recovery purposes, and to maintain integrity and consistency of data in case of system failures or errors. Option A is true as only successful transactions are recorded in the log. Option B is true as unsuccessful transactions are recorded in an error file. Option D is often true as users may need a hardcopy transaction listing for reference or documentation purposes, but it is not always required or provided.

Question 16

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. Spooling refers to the process of putting data into a temporary working area in computer memory or on disk. It is not a type of input control used to ensure the accuracy and integrity of input data. Reasonableness check, validity check, and missing data check are all input controls used to ensure the accuracy of data entered into a system.

Question 17

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) Legal Compliance
D) Internal Reporting of Code Violations
E) All of the above are issues to be addressed

Accepted Answer

All of the above issues - conflicts of interest, full and fair disclosures, legal compliance, and internal reporting of code violations - should be addressed in a business code of ethics required by the SEC.

Question 18

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 19

Input controls include all of the following except
A) check digits
B) Limit check.
C) spooling check
D) missing data check

Accepted Answer

Spooling check is not an input control; it is a process used for managing computer resources and controlling the flow of data between different processes. Check digits, limit check, and missing data check are all input controls that help ensure the accuracy and completeness of data entered into a computer system.

Question 20

Which statement is not correct? The audit trail in a computerized environment
A) consists of records that are stored sequentially in an audit file
B) traces transactions from their source to their final disposition
C) is a function of the quality and integrity of the application programs
D) may take the form of pointers,indexes,and embedded keys

Accepted Answer

In a computerized environment, the audit trail does not necessarily consist of records stored sequentially in an audit file; it can be more complex and involve various forms of data organization.

Quiz 3: Ethics,fraud,and Internal Control

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

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

Which of the following is correct?

Risk exposures 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

Which statement is not true? A batch control record

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

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 statement is not correct? The goal of batch controls is to ensure that during processing

The correct purchase order number,is123456.All of the following are transcription errors except

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

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

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

An example of a hash total is

Which statement is not correct?

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?

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

Input controls include all of the following except

Which statement is not correct? The audit trail in a computerized environment