Homework answers / question archive / 1) The increased presence of the microcomputer in the workplace has resulted in an increasing number of persons having access to the computer

1) The increased presence of the microcomputer in the workplace has resulted in an increasing number of persons having access to the computer

Management

Share With

---

1) The increased presence of the microcomputer in the workplace has resulted in an increasing number of persons having access to the computer.  A control that is often used to prevent unauthorized access to sensitive programs is:                   

1. 1. Backup copies of the diskettes
   2. Passwords for each of the users
   3. Disaster-recovery procedures
   4. Record counts of the number of input transactions in a batch being processed

 

2. Checklists, systems development methodology, and staff hiring are examples of what type of controls?                      
   1. Detective
   2. Preventive
   3. Subjective
   4. Corrective

 

3. When an on-line, real-time (OLRT) computer-based processing system is in use, internal control can be strengthened by  
   1. Providing for the separation of duties between keypunching and error listing operations
   2. Attaching plastic file protection rings to reels of magnetic tape before new data can be entered on the file
   3. Making a validity check of an identification number before a user can obtain access to the computer files
   4. Preparing batch totals to provide assurance that file updates are made for the entire input

 

4. When auditing "around" the computer, the independent auditor focuses solely upon the source documents and                
   1. Test data
   2. CBIS processing
   3. Control techniques
   4. CBIS output

 

5. One of the features that distinguishes computer processing from manual processing is                                            
   1. Computer processing virtually eliminates the occurrence of computational error normally associated with manual processing
   2. Errors or fraud in computer processing will be detected soon after their occurrences
   3. The potential for systematic error is ordinarily greater in manual processing than in computerized processing
   4. Most computer systems are designed so that transaction   trails useful for audit purposes do not exist

 

6. Given the increasing use of microcomputers as a means for accessing data bases, along with on-line real-time processing, companies face a serious challenge relating to data security.  Which of the following is not an appropriate means for meeting this challenge?
   1. Institute a policy of strict identification and password controls housed in the computer software that permit only specified individuals to access the computer files and  perform a given function.
   2. Limit terminals to perform only certain transactions.
   3. Program software to produce a log of transactions showing date, time, type of transaction, and operator.
   4. Prohibit the networking of microcomputers and do not permit users to access centralized data bases.

 

7.  What type of computer-based system is characterized by data that are assembled from more than one location and records that are updated immediately?                                        
   1. Microcomputer system
   2. Minicomputer system
   3. Batch processing system
   4. Online real-time system

 

8. Company A has recently converted its manual payroll to a computer-based system.  Under the old system, employees who had resigned or been terminated were occasionally kept on the payroll and their checks were claimed and cashed by other employees, in collusion with shop foremen.  The controller is concerned that this practice not be allowed to continue under the new system.  The best control for preventing this form of "payroll padding" would be to
   1. Conduct exit interviews with all employees leaving the company, regardless of reason.
   2. Require foremen to obtain a signed receipt from each employee claiming a payroll check.
   3. Require the human resources department to authorize all hires and terminations, and to forward a current computerized list of active employee numbers to payroll prior to processing.  Program the computer to reject inactive employee numbers.
   4. Install time clocks for use by all hourly employees.
9. Compared to a manual system, a CBIS generally          
   1. 1. Reduces segregation of duties
      2. Increases segregation of duties
      3. Decreases manual inspection of processing results
      4. Increases manual inspection of processing results.

1. 1 and 3
2. 1 and 4                                                 
3. 2 and 3                                                  
4. 2 and 4

 

10. One of the major problems in a CBIS is that incompatible functions may be performed by the same individual.  One compensating control for this is the use of                 
    1. Echo checks
    2. A self-checking digit system
    3. Computer generated hash totals
    4. A computer log

 

11. Which of the following processing controls would be most effective in assisting a store manager to ascertain whether the payroll transaction data were processed in their          entirety?
    1. Payroll file header record
    2. Transaction identification codes
    3. Processing control totals
    4. Programmed exception reporting

 

12. An organizational control over CBIS operations is            
    1. Run-to-run balancing of control totals
    2. Check digit verification of unique identifiers
    3. Separation of operating and programming functions
    4. Maintenance of output distribution logs

 

13.  Which of the following methods of testing application controls utilizes a generalized audit software package prepared by the auditors?                                                    
    1. Parallel simulation
    2. Integrated testing facility approach
    3. Test data approach
    4. Exception report tests

 

14. An unauthorized employee took computer printouts from output bins accessible to all employees.  A control which would have prevented this occurrence is                                    
    1. A storage/retention control
    2. A spooler file control
    3. An output review control
    4. A report distribution control

 

15. Which of the following is a disadvantage of the integrated test facility approach?
    1. In establishing fictitious entities, the auditor may be compromising audit independence.
    2. Removing the fictitious transactions from the system is somewhat difficult and, if not done carefully, may contaminate the client's files.
    3. ITF is simply an automated version of auditing "around" the computer.
    4. The auditor may not always have a current copy of the authorized version of the client's program.

 

16. Totals of amounts in computer-record data fields which are not usually added for other purposes but are used only for data processing control purposes are called                      
    1. Record totals
    2. Hash totals
    3. Processing data totals
    4. Field totals

 

17. A hash total of employee numbers is part of the input to a payroll master file update program.  The program compares the hash total to the total computed for transactions          applied to the master file.  The purpose of this procedure         is to:              
    1. Verify that employee numbers are valid
    2. Verify that only authorized employees are paid
    3. Detect errors in payroll calculations
    4. Detect the omission of transaction processing

 

 

18. Matthews Corp. has changed from a system of recording time        worked on clock cards to a computerized payroll system in   which employees record time in and out with magnetic cards.  The CBIS automatically updates all payroll records.   Because of this change                                      
    1. A generalized computer audit program must be used
    2. Part of the audit trail is altered
    3. The potential for payroll related fraud is diminished
    4. Transactions must be processed in batches

 

19. Generalized audit software is of primary interest to the auditor in terms of its capability to                       
    1. Access information stored on computer files
    2. Select a sample of items for testing
    3. Evaluate sample test results
    4. Test the accuracy of the client's calculations

 

20. Accounts payable program posted a payable to a vendor not included in the on-line vendor master file.  A control which would prevent this error is a                               
    1. Validity check
    2. Range check
    3. Reasonableness test
    4. Parity check

 

21. In a computerized sales processing system, which of the following controls is most effective in preventing sales invoice pricing errors?
    1. Sales invoices are reviewed by the product managers before being mailed to customers
    2. Current sales prices are stored in the computer, and, as stock numbers are entered from sales orders, the computer automatically prices the orders
    3. Sales prices, as well as product numbers, are entered as sales orders are entered at remote terminal locations
    4. Sales prices are reviewed and updated on a quarterly basis

 

 

22. Which of the following procedures is an example of auditing "around" the computer?
    1. The auditor traces adding machine tapes of sales order batch totals to a computer printout of the sales journal
    2. The auditor develops a set of hypothetical sales transactions and, using the client's computer program, enters the transactions into the system and observes the processing flow
    3. The auditor enters hypothetical transactions into the client's processing system during client processing of live" data
    4. The auditor observes client personnel as they process the biweekly payroll.  The auditor is primarily concerned with computer rejection of data that fails to meet reasonableness limits

 

23. Auditing by testing the input and output of a computer-based  system instead of the computer program itself will                 
    1. Not detect program errors which do not show up in the output sampled
    2. Detect all program errors, regardless of the nature of the output
    3. Provide the auditor with the same type of evidence
    4. Not provide the auditor with confidence in the results of the auditing procedures

 

24. For good internal control over computer program changes, a policy should be established requiring that                            
    1. The programmer designing the change adequately test     the revised program
    2. All program changes be supervised by the CBIS control              group
    3. Superseded portions of programs be deleted from the              program run manual to avoid confusion
    4. All proposed changes be approved in writing by a responsible individual.    

 

25. Which of the following is not a technique for testing data processing controls?
    1. The auditor develops a set of payroll test data that contain numerous errors.  The auditor plans to enter these transactions into the client's system and observe whether the computer detects and properly responds to the error conditions
    2. The auditor utilizes the computer to randomly select customer accounts for confirmation
    3. The auditor creates a set of fictitious custom accounts and introduces hypothetical sales transactions, as well as sales returns and allowances, simultaneously with the client's live data processing
    4. At the auditor's request, the client has modified its payroll processing program so as to separately record any weekly payroll entry consisting of 60 hours or more.  These separately recorded ("marked") entries are locked into the system and are available only to the auditor

 

26. Which of the following would lessen internal control in a CBIS?                          
    1. The computer librarian maintains custody of computer  program instructions and detailed listings
    2. Computer operators have access to operator instructions and detailed program listings
    3. The control group is solely responsible for the distribution of all computer output
    4. Computer programmers write and debug programs which perform routines designed by the systems analyst

 

27. Access control in an on-line CBIS can best be provided  in most circumstances by                                           
    1. An adequate librarianship function controlling access to files
    2. A label affixed to the outside of a file medium holder that identifies the contents
    3. Batch processing of all input through a centralized, well-guarded facility
    4. User and terminal identification controls, such as passwords

 

28. While entering data into a cash receipts transaction file, an employee transposed two numbers in a customer code. Which of the following controls could prevent input of this    type of error?
    1. Sequence check
    2. Record check
    3. Self-checking digit
    4. Field-size check

 

29. What is the computer process called when data processing is performed concurrently with a particular activity and the results are available soon enough to influence the particular course of action being taken or the decision being made?
    1. Batch processing
    2. Real time processing
    3. Integrated data processing
    4. Random access processing

 

 

30. A major exposure associated with the rapidly expanding use of microcomputers is the absence of:                               
    1. Adequate size of main memory and disk storage
    2. Compatible operating systems
    3. Formalized procedures for purchase justification
    4. Physical, data file, and program security

 

31. To ensure that goods received are the same as those shown on  the purchase invoice, a computerized system should:
    1. Match selected fields of the purchase invoice to goods received
    2. Maintain control totals of inventory value
    3. Calculate batch totals for each input
    4. Use check digits in account numbers

 

32. Errors in data processed in a batch computer system may not be detected immediately because
    1. Transaction trails in a batch system are available only for a limited period of time
    2. There are time delays in processing transactions in a batch system
    3. Errors in some transactions cause rejection of other transactions in the batch
    4. Random errors are more likely in a batch system than in an on-line system

 

33. Which of the following is a computer test made to ascertain whether a given characteristic belongs to the group?        
    1. Parity check
    2. Validity check
    3. Echo check
    4. Limit check.