INFO SYS Quiz 7
Which statement n not correct?
Header labels are prepared manually and affixed to the outside of the tape or disk
If an auditor is not in the position to be able to use test data as a concurrent audit tool, the best next alternative is usually considered to be
ITF
An auditor wants to develop a test for an application control using actual live transactions. Which of the following tools and techniques comes closest to meeting the auditor's needs?
Parallel simulation technique
Omen Company is a manufacturer of men's shirts. It distributes weekly sales reports to each sales manager.The quantity 2R5 appeared in the quantity fold column for one of the items on the weekly sales report for one of the sales managers. The most likely explanation for what has occurred is that the
Program did not contain validation controls for checking input data
Data processing activities may be classified in terms of three stages or processes - input, processing, and output. An activity that is not normally associated with the input stage is
Reporting
What a given individual is authorized to access within the company database is controlled by the use of
access control tables
Your company uses an automated purchasing system that electronically generates the purchase orders that it sends to vendors for purchases. Lately you have become aware that in a number of instances, the electronic purchasing system has generated purchases of some of your stock items for quantities that represent a four year supply of those items. This is of concern to you because these products have only two-year shelf lives. Which of the following edit checks in your automated purchasing system would address this issue?
limit check on quantities ordered
If an employee in receiving keyed in the receipt of a shipment but forgot to input the purchase order number for the shipment, which of the following controls would be the best to detect this error?
completenes check
Checking to ensure that the factory calendar and the number of hours worked during the week would be described as a
logical relationship check
Which of the following edit checks would be the most critical test to determine if the correct rate of pay is being used to calculate the earnings and create a pay check for a given employee?
logical relationship check
An employee in the receiving department keyed in a shipment from a remote terminal and inadvertently omitted the purchase order number. The best systems control to detect this error is
missing data test
At your company there have been a number of delays in the billing department sending out the initial invoices to new customers due to the absense of mailing addresses in the customer master record. Which of the following checks/tests would best help to eliminate this problem?
completeness check
The purpose of input controls is to ensure the
completeness, accuracy, and validity of input
Comparing batch header details to calculated totals is known as
computer agreement
Which statement is not correct? The audit trail in a computerized environment
consists of records that are stored sequentially in an audit file
Which of the following controls is not a type of input closed loop verification?
control total verification
Input controls usually are described as dealing with all of the following considerations except
correctness
Methods used to maintain an audit trail in a computerized environment include all of the following except
data encryption
If a control total were to be computed on each of the following data items, which would best be identified as a hash total for a payroll computer application?
department numbers
The data control clerk performs all of the following duties except
destroying batch control logs when reconciled
Which test is not an example of a white box test?
determining the fair value of inventory
The four online data integrity requirements are
durability, consistency, atomicity, and isolation
Routines that use the computer to check the validity and accuracy of transaction data during input are sometimes referred to as
edit programs
If you were to configure the data in your vendor master data record to check for a duplicate invoice every time the system processed an invoice from this vendor, you would be setting up a
none of the items listed here
Which of the following edit checks would be the most critical test to determine the reasonableness of the number of dependents being claimed by an employee for determination of withholding taxes during the processing of a pay check for a given employee?
none of these checks would be of much use
Which of the following is an example of a field interrogation?
numeric/alphabetic check
Which of the following is not a continous online auditing technique
parallel simulation
Which of the following is not generally considered to be an input or processing control?
parity check
Those controls meant to ensure the completeness and accuracy of accumulated data are generally know as
processing controls
All of the following statements are true about the integrated test facility (ITF) except
production reports are affected by ITF transactions
Which of the following is an input control?
reasonableness check
Which of the following is a record interrogation level control?
reasonableness test
All of the following are advantages of the test data technique except
the test data are easily compiled
All of the following are disadvantages of the test data technique except
the test data technique requires extensive computer expertise on the part of the auditor
When analyzing the results of the test data method, the auditor would spend the least amount of time reviewing
the test transactions
All of the following concepts are associated with the black box approach to auditing computer applications except
this approach is used for complex transactions that receive input from many sources
Run to run control totals can be used for all of the following except
to ensure that all data input is validated
Run-to-run control totals can be used for all of the following except
to ensure that all data input is validated
The audit technique that calls for a step by step review of the processing accomplished by the application is called
tracing
In a manual system, records of current activity are posted from a journal to a ledger. In a computer system, currect records from a(n)
transaction file are updated to a master file
Which statement is not correct? The goal of batch controls is to ensure that during processing
transactions are free from clerical errors
Which statement is not correct? The goal of batch controls is to ensure that during processing
transactions are processed more than once
One of the steps in assessing control risk is to identify necessary controls intended to prevent data from being lost, added, duplicated, or altered during computer processing. An example of this type of control is the
use of control totals, limit and reasonableness checks, and sequence tests
Transactions that were erroneous and had been previously rejected by the computer system apparently were not being reentered and reprocessed once they had been corrected. This erroneous condition is best controlled by
user correction of rejected errors
Risk exposures associated with creating an output file as an intermediate step in the printing process (spooling) include all of the following actions by a computer criminal except
using a remote printer and incurring operating inefficiencies
An accounts payable program posted a payable to a vendor not included in the online vendor master file. A control that would prevent this error is a
validity check
An online bank teller system permitted withdrawals from inactive accounts. The best control for denying such withdrawals is a
validity check
Which input control check would detect a payment made to a nonexistent vendor?
validity check
Which of the following edit checks would be the most critical test to determine if an employee number being used to create a pay check for an active employee is correct?
validity check
Which of the following edit checks would be the most critical test to determine the correct marital status of an employee for determination of withholding taxes during the creation of a pay check for an active employee?
validity check
Some controls are processing controls and some controls are data validation controls. However, there may be controls are both processing controls and data validation controls. Which of the following are both processing data and validation controls? (There may be more than one.)
validity check, edit check, and limit check
A company's labor distribution report requires extensive corrections each month. Because of labor hours charged to inactive jobs. Which of the following data processing input controls appears to be missing?
validity test
In an automated payroll processing environment, a department manager substituted the time card for a terminal employee with a time card for a fictitious employee. The fictitious employee had the same pay rate and hours worked as the terminated employee. The best control technique to detect this action using employee identification numbers is a
hash total
Which of the following is not a common type of white box test of controls?
inference tests
Some of the more important controls that related to accounting information systems are validity checks, limit checks, field checks, and sign tests. These are classified as
input validation controls
Which of the following audit approaches provides for real time auditing?
integrated test facility
A computer operator was in a hurry and accidentally used the wrong master file to process a transaction file. A a result, the accounts receivable master file was erased. Which control would prevent this from happening?
internal header label check
Which statement is NOT true? A batch control log
is prepared by the user department
An inventory record indicates that 12 items of a specific product are on hand. A customer purchased two of the items, but when recording the order, the data entry clerk mistakenly entered 20 items sold. Which check could detect this error?
limit check
The employee entered "40" in the "hours worked per day" field. Which check would detect this unintentional error?
limit check
Which statement is not correct?
a transaction log is a temporary file
The correct purchase order number is 123456. All of the following are transcription errors except
124356
A control designed to validate a transaction at the point of data entry is
a check digit
A mail-order retailer of low-cost novelty items is receiving an increasing number of complaints from customers about the wrong merchandise being shipped. The order code for items has the format wwxxyyzz. The major category is ww, xx is the minor category, yy identifies the item, and zz identifies the catalog. In many cases, the wrong merchandise was sent becasue adjacent characters in the order code had been transposed. The best control for decreasing the number of orders with the wrong merchanidse is to
add check-digits to the order codes and verify them for each order
Which of the following is an example of an input error correction technique?
all are examples of input error correction techniques
Which statement is not true? A batch transmittal sheet
all of the above are true
White box auditing of computer applications involve all of the following except
all of the other items are involved in white box auditing
A signature on a batch forms or source documents is a type of
authorization control
A number of shipments made to customers with multiple locations have been returned due to the wrong customer location being indiciated on your company's shipping documents. Which of the following edit checks should be performed to help allieviate this situation?
autofill shipping document delivery location based on customer purchase order
Analyzing computer application programs can be done by all of the following except (possibly more than one answer):
batch controls and validity controls
When auditors do not rely on a detailed knowledge of the application's internal logic, they are performing
black box tests of program controls
Recalculation of hash totals at sucessive steps in processing is an example of a
both redundancy test and completeness test
Which of the following would be added, either horizontally or vertically, to transmitted data by the telecommunications control unit to check for errors?
check bits
At your company in a number of instances, accounts receivable had to be written off due to the customer being in receivership and unable to pay for their purchases. The customers were valid, long-term customers of but simply could not pay the amount owed to your company for recent shipments. Which of the following would not directly help to alleviate this problem?
check customer's credit when setting up customer master records
Which input control check would detect a posting to the wrong customer account?
check digit
Which of the following is not an example of a processing control?
check digit
Source document control include all of the following except
check digits
Which of the following is correct?
check digits are designed to detect transcription and transposition errors
Some of your customers have complained that they have been shipped the incorrect products when they have placed orders using your online ordering website. Which of the following edit checks might be useful in correcting this problem.
closed loop validation of product number ordered
Which of the following edit checks would be the only useful test to determine the appropriateness of the overtime hours submitted by an employee during the pay period for the calculation of wages earned for a given employee?
combination field check
Your company uses an automated purchasing orders system that electronically generates the purchase orders that it sends to vendors for purchase. Lately you have become aware that in a number of instances, the electronic purchasing system has generated purchases of some of your stock items for quantities that are inconsistent with the quantities of those products usually ordered by your company. In one instance an order was placed for one ordinary nail. Which of the following edit checks in your automated purchasing system would address this issue?
reasonableness test across quantity of items ordered and product stock number
An example of an input control is
recalculating an amount
Input errors handling can be processed by all of the following except
rejecting the batch and accepting the errors
Application run control objectives do not normally include assurance that
review and approval procedures for new systems are set by policy and adhered to
Which check is not a file interrogation?
sequence check
Which of the following is an example of record interrogation?
sequence check
Which one of the following input validation routines is not likely to be appropriate in a real-time operation?
sequence check
Which of the following numeric values cannot utilize a check digit control
social security number
Input controls include all of the following except
spooling check
Which check is not an input control?
spooling check
Which of the following is not an example of input control test?
spooling check
Which of the following is not an input control?
spooling check
An example of a hash total is
sum of the social security numbers - 12,555,437,251
All of the following are examples of source document control except
supervising the bursting of source documents
Which of the following data validation edits could be used to determine if the correct code for a customer return of merchandise had been entered (possible more than one):
table lookup and existence check
An edit of individual transactions in a direct access file processing system usually
takes place in an online mode as transactions are entered
Which of the following is not a testing application controls?
testing the authority table