Internal Control and Computer Based Information Systems

A microcomputer system b minicomputer system c batch

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a. Microcomputer system. b. Minicomputer system. c. Batch processing system. d.  Online real-time system. ANSWER: D 20. 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 a. Conduct exit interviews with   all employees leaving the company, regardless of  reason. b. Require foremen to obtain a signed receipt from each employee claiming a  payroll check. c. Require the human resources department to authorize all hires and  terminations, and to forward a current computerized list of active employee 
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numbers to payroll prior to processing. Program the computer to reject  inactive employee numbers. d. Install time clocks for use by all hourly employees. ANSWER: C 21. Compared to a manual system, a CBIS generally 1. Reduces segregation of duties. 2. Increases segregation of duties. 3. Decreases  manual inspection of processing results. 4. Increases manual inspection of processing  results. a. 1 and 3. b. 1 and 4 c. 2 and 3 d. 2 and 4. ANSWER: A 22. 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 a. Echo checks. b. A self-checking digit system. c. Computer generated hash totals. d. A  computer log. ANSWER: D 23. 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? a. Payroll file header record. b. Transaction identification codes. c. Processing control  totals. d. Programmed exception reporting. ANSWER: C 24. An organizational control over CBIS operations is a. Run-to-run balancing of control totals. b. Check digit verification of unique identifiers.  c. Separation of operating and programming functions. d. Maintenance of output  distribution logs. ANSWER: C 25. Which of the following methods of testing application controls utilizes a generalized  audit software package prepared by the auditors?
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a. Parallel simulation. b. Integrated testing facility approach. c. Test data approach. d.  Exception report tests.
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