For each control classify it either as a preventive control or a detective control. Also classify each control as either a manual control, an IT dependent manual control, at IT application control, or a IT general control. a. b. C. Software will not allow a sale to be processed to a customer that has exceeded its credit limit. Personnel responsible for running computer programs are prevented from accessing and changing computer software. Computer software generates a daily report of all shipping documents (bills of lading) that have not resulted in a sales invoice. >

For each control classify it either as a preventive control or a detective control. Also classify each control as either a manual control, an IT dependent manual control, at IT application control, or a IT general control. a. b. C. Software will not allow a sale to be processed to a customer that has exceeded its credit limit. Personnel responsible for running computer programs are prevented from accessing and changing computer software. Computer software generates a daily report of all shipping documents (bills of lading) that have not resulted in a sales invoice. >

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter3: Internal Control Over Financial Reporting: Responsibilities Of Management And The External Auditor

Section: Chapter Questions

Problem 20CYBK

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Assumes 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.
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Which of the following statements is most accurate? a. ERP systems are commercial software packages that are sometimes called turnkey systems because they can be implemented by the user with little or no modification. b. Substantive tests provide evidence focused on the system controls. c. Public accounting firms that provide attest services are not allowed under SOX to offer IT advisory services. d. Both small and large firms that have standardized information needs are potential customers for commercial software. e. External auditors may rely on the work of internal auditors only if they report to the controller or the CEO of the client company.
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Alejandro reviewed the user access protocols for Ponder Products. Alejandro is concerned that the accounting system could be subject to malicious attacks on user accounts that are currently protected with a username and password. The system has the capability to send a message to a user's cell phone or email address. How could Alejandro use the messaging capabilities of the system to further protect it from attack? Enable two-factor authentication Enable fingerprint scanners Enable read-only access for all users Enable administrator access for all users
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