02 Jan Check digit control

Question 1

From the standpoint of computer fraud, which type of controls would probably be of highest importance?

Question 1 options:

Input controls

Processing controls

Output controls

Access controls

Question 2

Which of the following statements is true regarding preventive control procedures and detective control procedures?

Question 2 options:

If detective controls exist, preventive controls are unnecessary.

Preventive controls should be cost effective, but detective controls do not need to be cost effective.

If preventive controls exist, detective controls are unnecessary.

They should be interrelated.

Question 3

An ideal control is:

Question 3 options:

a control procedure that should always be implemented into a company’s system due to the efficiency and effectiveness that will result from its implementation.

a control procedure that is anticipated to have the lowest possible cost in relation to its benefits.

a control procedure that is always cost effective.

a control procedure that reduces to practically zero the risk of an error or an irregularity taking place and not being detected.

Question 4

Almost all computer criminals can be described as:

Question 4 options:

amateurs who describe themselves as relatively honest.

professional criminals.

technical hackers possessing strong computer skills.

white collar professional criminals.

Question 5

If the same employee is responsible for authorizing a business transaction and recording the transaction in the accounting records, this indicates a weakness in which element of a company’s internal control system?

Question 5 options:

Internal review of controls

Competent employees

Separation of duties

A good audit trail

Question 6

Which of the following statements is true?

Question 6 options:

COBIT concluded that a company’s management is not responsible for establishing and monitoring a company’s internal control system.

SAS 78 rejected the definition of internal control provided in the COSO report.

The COSO report emphasized that an internal control system is a tool of management.

The COSO report failed to define internal control.

Question 7

A periodic review by internal auditors that stresses the evaluation of the efficiency and effectiveness of a department’s procedures is called a (an):

Question 7 options:

audit by exception.

operational audit.

financial audit.

management-by-exception audit.

Question 8

Thwarting computer abuse can be enhanced by all of the following except:

Question 8 options:

enlisting top-management support.

increasing employee awareness and education.

using strong passwords.

allowing only 10% of employees access to computers.

Question 9

Which of the following types of errors will check digits usually detect?

Question 9 options:

Double mistakes canceling out each other

Transposition of two digits

Inaccuracy of one digit

Fraudulent data

Question 10

Check digit control procedure have which of the following attributes?

Question 10 options:

Always recommended for accounting information systems

Guarantees data validity

None of the above

Detects fraudulent data