Internal Control and Computer Based Information Systems

Backup copies of the diskettes b passwords for each

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a. Backup copies of the diskettes. b. Passwords for each of the users. c. Disaster- recovery procedures. d. Record counts of the number of input transactions in a batch  being processed. ANSWER: B 14. Checklists, systems development methodology, and staff hiring are examples of  what type of controls? a. Detective. b. Preventive. c. Subjective. d. Corrective. ANSWER: B 15. When an on-line, real-time (OLRT) computer-based processing system is in use,  internal control can be strengthened by a. Providing for the separation of duties between keypunching and error listing  operations. b. Attaching plastic file protection rings to reels of magnetic tape before new  data can be entered on the file. c. Making a validity check of an identification number  before a user can obtain access to the computer files. d. Preparing batch totals to  provide assurance that file updates are made for the entire input. ANSWER: C 16. When auditing "around" the computer, the independent auditor focuses solely upon  the source documents and a. Test data. b. CBIS processing. c. Control techniques. d. CBIS output. ANSWER: D 17. One of the features that distinguishes computer processing from manual processing  is a. Computer processing virtually eliminates the occurrence of computational error  normally associated with manual processing. b. Errors or fraud in computer processing  will be detected soon after their occurrences. c. The potential for systematic error is  ordinarily greater in manual processing than in computerized processing. d. Most computer systems are designed so that transaction trails useful for audit  purposes do not exist. ANSWER: A
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18. 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? a. 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. b. Limit terminals to perform only certain transactions. c. Program software to produce a log of transactions showing date, time, type of  transaction, and operator. d. Prohibit the networking of microcomputers and do not permit users to access  centralized data bases. ANSWER: D 19. What type of computer-based system is characterized by data that are assembled  from more than one location and records that are updated immediately?
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