Internal Control and Computer Based Information Systems

Cbis controls are frequently classified as to general

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51. CBIS controls are frequently classified as to general   controls  and   application   controls. Which of the following is an example of an application  control? a. Programmers may access the computer only for testing and "debugging"  programs. b. All program changes must be fully documented and approved by the  information systems manager and the user department authorizing the  change. c. A separate data control group is responsible for distributing output, and also  compares input and output on a test basis. d. In processing sales orders, the computer compares customer and product  numbers with internally stored lists. ANSWER: D 52. After a preliminary phase of the review of a client's CBIS controls, an auditor may  decide not to perform further tests related to the control procedures within the CBIS  portion of the client's internal control system. Which of the following would not be a valid  reason for choosing to omit further testing? a. The auditor wishes to further reduce assessed risk. b. The controls duplicate  operative controls existing elsewhere in the system. c. There appear to be major  weaknesses that would preclude reliance on the stated procedures. d. The time and  dollar costs of testing exceed the time and dollar savings in substantive testing if the  controls are tested for compliance. ANSWER: A 53. For good internal control over computer program changes, a policy should be  established requiring that a. The programmer designing the change adequately test the revised program. b. All  program changes be supervised by the CBIS control group. c. Superseded  portions of programs be deleted from the program run manual to avoid confusion.  d. All proposed changes be approved in writing by a responsible individual. ANSWER: D
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54. Which of the following is   not   a technique for testing data processing controls? accounts and introduces hypothetical sales transactions, as well as sales returns and allowances, simultaneously with the client's  live data processing.
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  • Spring '10
  • Mr.Cula
  • Accounting, C. processing data

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