Which of the following would reduce the effectiveness of internal control in an accountinginformation system?a. The computer librarian maintains custody of computer program instructions and detailed lists.b. Computer operators have access to operator instructions and detailed program lists.c. The control group is solely responsible for the distribution of all computer output.d. Computer programmers write and debug programs that perform routines designed by thesystems analyst.

Which of the following would reduce the effectiveness of internal control in an accountinginformation system?a. The computer librarian maintains custody of computer program instructions and detailed lists.b. Computer operators have access to operator instructions and detailed program lists.c. The control group is solely responsible for the distribution of all computer output.d. Computer programmers write and debug programs that perform routines designed by thesystems analyst.

Accounting Information Systems

10th Edition

ISBN:9781337619202

Author:Hall, James A.

Publisher:Hall, James A.

Chapter14: Auditing It Controls Part I: Sarbanes-oxley And It Governance

Section: Chapter Questions

Problem 2MCQ

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Which of the following would strengthen organizational control over a large-scale data processing center?a. Requiring the user departments to specify the general control standards necessary for processing transactions.b. Requiring that requests and instructions for data processing services be submitted directly to the computer operator in the data center.c. Having the database administrator report to the manager of computer operations.d. Assigning maintenance responsibility to the original system designer who best knows its logic.e. None of the above.
Computer accounting control procedures are referred to as general or application controls. The primary objective of application controls in a computer environment is toa. ensure that the computer system operates efficiently.b. ensure the validity, completeness, and accuracy of financial transactions.c. provide controls over the electronic functioning of the hardware.d. plan for the protection of the facilities and backup for the systems.
Explain how internal control can be enhanced through the proper installation of Information Technology Identify the risks for accounting systems that rely heavily on IT functions. Distinguish between general controls and application controls and give examples at least five Which duties should be segregated in a computer department? Describe the typical duties of computer personnel. What aspects of documentation, file security and retention control procedures are unique to computer systems? What are the responsibilities of the database administrator (DBA) function? Compare the risks associated with network environment to those associated with centralized IT functions.
The computer processing portion of a sales order system is represented by the flowchart. Answer the following questions.a. What type of data processing system is this? Explain, and be specific.b. The auditor suggests that this system can be greatly simplified by changing to direct access files. Explain the major operational changes that would occur in the system if this were done.c. The auditor warns of control implications from this change that must be considered. Explain the nature of the control implications.d. Sketch a flowchart (the computerized portion only) of the proposed new system. Use correct symbols and label the diagram.
What control procedures can be used to achieve control over computer operations in an end-user computing environment? What control procedures can be used to achieve control over computerized processing in an end-user computing environment?
Which of the following statements most likely represents a control consideration for anentity that performs its accounting using mobile computing devices?a. It is usually difficult to detect arithmetic errors.b. Unauthorized persons find it easy to access the computer and alter the data files.c. Transactions are coded for account classifications before they are processed on thecomputer.d. Random errors in report printing are rare in packaged software systems.
The database approach has several unique characteristics not found in traditional (flat-file) systems. Which of the following statements does not apply to the database model? a. Database systems have data independence; that is, the data and the programs are maintained separately except during processing. b. Database systems contain a data-definition language that helps describe each schema and subschema. c. The database administrator is the part of the software package that instructs the operating aspects of the program when data are retrieved. d. A primary goal of database systems is to minimize data redundancy. e. Database systems provide increased accessibility to data and flexibility in its usage.
Discuss how the nature of the necessary internal control features is affected by switchingfrom a manual system to a large-scale computer-based accounting system
Increasing use of sophisticated EDP systems has produced significant changes in the accounting environment. Some of these changes are the following: documents that are used to enter information into the computer may exist for only a short time or only in computer-readable form. In some computer systems, input documents may not exist at all, because information is entered directly into the system. Computer processing uniformly subjects like transactions to the same processing instructions. Many internal control procedures, once performed by separate individuals in manual systems, may be combined in systems that use computer processing. The potential for individuals to gain unauthorized access to data or assets may be greater in computerized accounting systems than in manual systems. Required: For each of the changes, discuss the impact on the internal control system and the independent audit.
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The most significant control challenges in end-user computer settings are as follows:
Management and auditor are concerned about segregation of duties in computer based systems? Why? How to mitigate this concern?