GEN COMBO LL PRINCIPLES OF AUDITING & OTHER ASSURANCE SERVICES; CONNECT AC
21st Edition
ISBN: 9781260427202
Author: Ray Whittington, Kurt Pany
Publisher: McGraw-Hill Education
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Chapter 8, Problem 29DOQ
To determine
Identify the appropriate answer related to the control that would prevent the error in the given case.
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Students have asked these similar questions
A sales transaction was coded with an invalid customer account
code (XXX-XX-XXX rather than XXX-XXX-XXX). The error was not
detected until the updating run when it was found that there was
no such account to which the transaction could be posted. A
control procedure that would serve as a preventive control for this
situation would be:
Select one:
O a. Hash total
O b. Check digit
O c. Validity test
O d. Either B or C
Vendor invoices are recorded for items that were never ordered by the company. Which of the following controls can best
address this issue?
O Procedures for rejected inputs
O Reconcile bank account
O Independent authorization to make payment
Independent validation of vendor invoices
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.
Chapter 8 Solutions
GEN COMBO LL PRINCIPLES OF AUDITING & OTHER ASSURANCE SERVICES; CONNECT AC
Ch. 8 - List and describe the major components of an...Ch. 8 - Prob. 2RQCh. 8 - Prob. 3RQCh. 8 - Prob. 4RQCh. 8 - Prob. 5RQCh. 8 - Distinguish general control activities from...Ch. 8 - Prob. 7RQCh. 8 - Prob. 8RQCh. 8 - Prob. 9RQCh. 8 - Prob. 10RQ
Ch. 8 - Prob. 11RQCh. 8 - Prob. 12RQCh. 8 - Prob. 13RQCh. 8 - What is the difference between an Internet-based...Ch. 8 - Prob. 15RQCh. 8 - Prob. 16RQCh. 8 - Prob. 17RQCh. 8 - Prob. 18RQCh. 8 - Prob. 19RQCh. 8 - Prob. 20RQCh. 8 - Prob. 21RQCh. 8 - Prob. 22QRACh. 8 - Prob. 23QRACh. 8 - Prob. 24QRACh. 8 - Prob. 25QRACh. 8 - Prob. 26QRACh. 8 - Prob. 27QRACh. 8 - Prob. 28QRACh. 8 - Prob. 29AOQCh. 8 - Prob. 29BOQCh. 8 - Prob. 29COQCh. 8 - Prob. 29DOQCh. 8 - When an online real-time (OLRT) IT processing...Ch. 8 - Prob. 29FOQCh. 8 - Prob. 29GOQCh. 8 - Prob. 29HOQCh. 8 - Prob. 29IOQCh. 8 - Prob. 29JOQCh. 8 - Prob. 29KOQCh. 8 - Prob. 29LOQCh. 8 - Prob. 30OQCh. 8 - Prob. 31OQCh. 8 - For each definition (or partial definition) in the...Ch. 8 - Prob. 33PCh. 8 - Prob. 34PCh. 8 - Prob. 35PCh. 8 - Prob. 36PCh. 8 - Prob. 37PCh. 8 - Prob. 38ITC
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Similar questions
- Choose only one answer as well as state their reasons/rationale for the answer chosen. 3) A sales representative mistakenly entered a nonexistent account number into the system. As a result, the goods were shipped but the customer was never billed. Which type of control would be most effective in preventing this type of problem?a. Turnaround documentb. Completeness checkc. Field checkd. Validity checke. Check digit verificationarrow_forwardWhich of the following control procedures mitigates the threat of duplicate payments? Select one: a. When an invoice is paid, the invoice and the entire voucher package should be canceled (for example marked “paid”) in a way that it cannot be submitted again. b. When evaluated receipt settlement (invoice-less system) is used, receiving reports need not be marked as paid as no invoices are generated. c. Photocopied invoices can be paid. d. Invoices should be approved for payment only when accompanied by a valid purchase order.arrow_forwardAssumes that when conducting procedures to obtain an understanding of the control structure in the Fiona Company, you checked “NO” to the following internal control questionnaire items: Does access to on-line files requires specific passwords to be entered to identify and validate the terminal user? Are control totals established by the user prior to submitting data for processing? (order entry application subsystem). Are input control totals reconciled to output control totals? (Order entry application sub system). Required: Describe the errors, irregularities, or misstatements that could occur due to the weaknesses indicated by the lack of controls.arrow_forward
- Controls used in the management of a computer center to minimize the possibility of using an incorrect file or program area. Control totals.b. Record counts.c. Limit checks.d. External labels.arrow_forwardConsider the following internal controls associated with an evaluated receipts process. For each control, identify the assertion for which the control is designed to prevent, or detect and correct misstatements. a. b. C. d. e. f. g. h. Software generates a daily report comparing the daily total in the cash disbursements journal with the total of payables submitted to the third-party payment processor for payment, and discrepancies are reported. Software generates a daily report of any discrepancies between the vendor accounting coding and general ledger accounts coding, which is compared with the purchase order and purchase requisition. Software generates a daily report of any discrepancies between the recorded payable and quantities on the receiving report. Once a receiving report is matched with a purchase, it cannot be matched with another purchase. Software generates a daily report of receiving reports that have not been matched one-for-one with the recording of a purchase and a…arrow_forwardThe purpose of a checkpoint procedure is to facilitate restarting aftera. data processing errors.b. data input errors.c. the failure to have all input data ready on time.d. computer operator intervention.e. echo check failures.arrow_forward
- Control Objectives and Procedures Associations. Exhibit 7.64.1 contains an arrangement of examples of transaction errors (lettered a–g) and a set of client control procedures and devices (numbered 1–15). Make a copy of the exhibit page and complete the following requirements.Requireda. Opposite the examples of transaction errors lettered a–g, write the name of the transaction assertion clients wish to achieve to prevent, detect, or correct the error.b. Opposite each numbered control procedure, place an “X” in the column that identifies the error(s) the procedure is likely to control by prevention, detection, or correction.arrow_forwardFireballCompany requires that all documents supporting a check (purchase order, invoice, and receiving report) be canceled by punching a hole through the packet. Why is this practice required?What might happen if it were not?arrow_forwardWhich of the following is NOT an example of application control?* a. Pre-filled forms are already sent to users to minimize input errors b. After processing, the daily sales summary are reconciled with the individual sales invoices processed c. Reasonableness tests on acceptable working hours are embedded in the payroll software d. An equipment failure causes an error message on the monitorarrow_forward
- 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 would be aa. batch total.b. completeness test.c. sequence check.d. reasonableness test.e. compatibility test.arrow_forwardComputer Internal Control Questionnaire Evaluation. Assume that, when conductingprocedures to obtain an understanding of Denton Seed Company’s internal controls, youchecked “No” to the following internal control questionnaire items:∙ Does access to online files require specific passwords to be entered to identify and validate the terminal user?∙ Does the user establish control totals prior to submitting data for processing? (Orderentry application subsystem.)∙ Are input control totals reconciled to output control totals? (Order entry applicationsubsystem.)Required:Describe the errors and frauds that could occur because of the weaknesses indicated by thelack of IT controlsarrow_forwardAssertion Associations. Exhibit 7.64.1 contains an arrangement of examples of transaction errors (lettered a–g) and a set of client control procedures and devices (numbered 1–15).Required:For each error/control objective, identify the assertion about classes of transactions and events most benefited by the control.arrow_forward
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