Accounting Essay

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Q1 Auditing in CIS Environment 1. An internal auditor noted the following points when conducting a preliminary survey in connection with the audit of an EDP department. Which of the following would be considered a safeguard in the control system on which the auditor might rely? a. Programmers and computer operators correct daily processing problems as they arise. b. The control group works with user organizations to correct rejected input. c. New systems are documented as soon as possible after they begin processing live data. d. The average tenure of employees working in the EDP department is ten months. 2. An on-line access control that checks whether the user’s code number is authorized to initiate a specific type of transaction or inquiry is referred to as a. Password c. Compatibility test b. Limit check d. Reasonableness test 3. A control procedure that could be used in an on-line system to provide an immediate check on whether an account number has been entered on a terminal accurately is a a. Compatibility test c. Record count b. Hash total d. Self-checking digit 4. A control designed to catch errors at the point of data entry is a. Batch total c. Self-checking digit b. Record count d. Checkpoints 5. Program documentation is a control designed primarily to ensure that a. Programmers have access to the tape library or information on disk files. b. Programs do not make mathematical errors. c. Programs are kept up to date and perform as intended. d. Data have been entered and processed. 6. Some of the more important controls that relate to automated accounting information systems are validity checks, limit checks, field checks, and sign tests. These are classified as a. Control total validation routines c. Output controls b. Hash totaling d. Input validation routines 7. Most of today’s computer systems have

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