Internal Control and Computer Based Information Systems

Answer a 26 an unauthorized employee took computer

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ANSWER: A 26. An unauthorized employee took computer printouts from output bins accessible to all  employees. A control which would have prevented this occurrence is a. A storage/retention control. b. A spooler file control. c. An output review control. d. A  report distribution control. ANSWER: D 27. Which of the following is a disadvantage of the integrated test facility approach? a. In establishing fictitious entities, the auditor may be compromising audit  independence. b. Removing the fictitious transactions from the system is somewhat difficult and,  if not done carefully, may contaminate the client's files. c. ITF is simply an automated version of auditing "around" the computer. d. The auditor may not always have a current copy of the authorized version of  the client's program. ANSWER: B 28. 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 a. Record totals. b. Hash totals. c. Processing data totals. d. Field totals. ANSWER: B 29. 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: a. Verify that employee numbers are valid. b. Verify that only authorized employees are  paid. c. Detect errors in payroll calculations. d. Detect the omission of transaction  processing. ANSWER: D
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30. 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 a. A generalized computer audit program must be used. b. Part of the audit trail is  altered. c. The potential for payroll related fraud is diminished. d. Transactions must be  processed in batches. ANSWER: B 31. Generalized audit software is of primary interest to the auditor in terms of its  capability to a. Access information stored on computer files. b. Select a sample of items for testing. c.  Evaluate sample test results. d. Test the accuracy of the client's calculations. ANSWER: A 32. An 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 a. Validity check. b. Range check. c. Reasonableness test. d. Parity check.
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