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.

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.

Accounting Information Systems

11th Edition

ISBN:9781337552127

Author:Ulric J. Gelinas, Richard B. Dull, Patrick Wheeler, Mary Callahan Hill

Publisher:Ulric J. Gelinas, Richard B. Dull, Patrick Wheeler, Mary Callahan Hill

Chapter8: Controlling Information Systems: Introduction To Pervasive Controls

Section: Chapter Questions

Problem 4RQ: Describe some compensating controls that can be used to reduce exposures when it is not possible to...

See similar textbooks

Similar questions

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
8. Please help me ASAP!!
4. Subject :- Accoounting
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.
19. Inherent risk is the risk that internal control will fail to prevent or detect and correct the material misstatementSelect one:TrueFalse
Question 7 Given all other things equal, an internal control situation (A) with more key controls in the same transaction stream than another situation (B), the preliminary control risk assessment for situation (A) should generally have a control risk assessment that is Key controls do not apply to preliminary control risk Equal Risk Lower Risk Higher Risk
Chapter 1- Fundamental Principles of Assurance Services 14. Which of the following is most likely a form of conclusion for a reasonahle assurance engagement? af A. "In our opinion, internal control is effective, in all material respects. based on XYZ criteria." B. "Based on our work described in this report, nothing has come to our attention that causes us to believe that internal control is not effective, in all material respects, based on XYZ criteria." C. Both A and B. D. Neither A nor B.
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…
13
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…