Question 10 (1ABC Company believes that a system of internal control cannot be considered fullyeffective until all possibilities of human error are completely eliminated, therebyensuring absolute accuracy.

The statement in the question from ABC Company reflects a common misconception about internal…

Answered: Question 10 (1 ABC Company believes…

Pkg Acc Infor Systems MS VISIO CD

10th Edition

ISBN:9781133935940

Author:Ulric J. Gelinas

Publisher:Ulric J. Gelinas

Chapter8: Controlling Information Systems: Introduction To Pervasive Controls

Section: Chapter Questions

Problem 8DQ

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5) What are common limitations of Internal Controls? a) Human Error b) Human Fraud c) Cost-Benefit Principle d) A, B, and C e) A and B only
4. Which of the following is not a risk specific to CIS environment? a. reliance on the functioning capabilities of hardware and software b. increased human involvement c. loss of data due to insufficient backup d. unauthorized access Required: choose the correct answer and Justify your answers in at least 6 sentences.
Question 1 (i) Operational controls are designed to prevent failures in operational procedures caused by: i. Machine breakdown and human error ii. Failures in the performance of systems and weaknesses in procedures. iii. Poor management iv. Risks of errors or fraud in accounting systems and accounting and finance activities. A. i and ii onlyB. i, ii and iii onlyC. i, ii and iv onlyD. All of the above (ii) Risk tolerance refers to A. The amount of risk the company is prepared to accept in order to achieve its financial objectives.B. The amount of risk the company could accept without a serious threatto its financial stability. C. The level of risk a company (or any other organisation) is willing to take in the pursuit of its objectives. D. The combination of the desire to take on risk in order to ontain a financial return and its risk capacity. (iii) The main objective of an external audit is to A. Protect the interests of shareholdersB. Detect fraud and irregularities in the company's…
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30 Which of the following is correct concerning system and organization controls (SOC) reports? Multiple Choice They all result in restricted-use reports. A prerequisite before issuing such a report is having performed the audit of the service organization's financial statements. Some of these reports do not address operating effectiveness. They all relate to controls at service organizations.
Question 48 An auditor may decide not to perform tests of controls related to the control procedures within the client's information systems. Which of the following would not be a valid reason for choosing to omit tests of controls? Group of answer choices The controls duplicate operative controls existing elsewhere in the structure. There appear to be major weaknesses that would preclude the control from preventing errors and irregularities. The time and dollar costs of testing exceed the time and dollar savings in substantive testing if the tests show the controls to be effective. The controls appear adequate.
Font 5 Paragraph F Following are examples of control deficiencies that may represent significant deficiencies or material weaknesses. For each of the following scenarios, indicate whether the deficiency is a significant deficiency or material weakness. Justify your decision. a. During its assessment of ICFR, the management of Lorenz Corporation and its auditors identified the following control deficiencies that individually represent significant deficiencies: . Inadequate segregation of duties over certain information system access controls. . Several instances of transactions that were not properly recorded in subsidiary ledgers. While the transactions that weren't recorded properly were not material, the gross amount of the transactions of that type totaled up to an amount several times materiality. . A lack of timely reconciliations of the account balances affected by the improperly recorded transactions. b. During its assessment of ICFR, management of First Coast BankCorp and its…
21. In performing effective risk assessment, organizations should: Group of answer choices None of the choices Identify and analyze risks to the achievement of its objectives to determine how they may be planned Consider potential fraud relating to the achievement of objectives Clearly specify objectives to allow the identification and assessment of risks related to the controls Identify and implement changes that could impact risk and internal control
The legal environment has little impact on human resource management decision making. Question 22 options: True False
Question 36 Once the auditor detects a control deficiency, which of the following steps must be taken FIRST? Perform tests of other controls related to the same assertion as the control deemed ineffective. Evaluate the severity of the deficiency on the auditor's control risk assessment for the assertion. Test the deficient control, assuming a maximim level of risk. Modify the planned substantive procedures as a result of the deficiency.
Processing Controls CMA 691 4-2 Unless adequate controls are implemented, the rapid advance of computer technology can reduce a firm’s ability to detect errors and fraud. Therefore, one of the critical responsibilities of the management team in firms where computers are used is the security and control of information service activities. During the design stage of a system, information system controls are planned to ensure the reliability of data. A well- designed system can prevent both intentional and unintentional alteration or destruction of data. These data controls can be classified as (1) input controls, (2) processing controls, and (3) output controls. Required: For each of the three data control categories listed, provide two specific controls and explain how each control contributes to ensuring the reliability of data. Use the following format for your answer. Control Category Specific Control Contribution to Data Reliability
Why does scope creep create risk in independence? Select all that apply It can create an unfair advantage in the marketplace. It can decrease costs. It can lead to unintentionally providing a prohibited service to a restricted entity. It can cause non-compliance with KPMG policies on independence.

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Question 10 (1 ABC Company believes that a system of internal control cannot be considered fully effective until all possibilities of human error are completely eliminated, thereby ensuring absolute accuracy.