FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- Select the correct answer(s) for the following multiple-choice questions. Note that there may be more than one correct answer. The number of incidents and the total dollar losses from computer fraud are increasing rapidly for several reasons: a. Many instances of computer fraud go undetected and many frauds are not reported. b. Many companies are moving to cloud services where there are few data security controls. c. Internet sites offer step-by-step instructions on how to perpetrate computer fraud and abuse. d. Law enforcement is not interested in preventing or prosecuting computer fraud. e. There are no laws against computer fraud so prosecution is difficultarrow_forwardWhat is the difference between line and staff activities? Give an example of each. In a flat world where profit margins are growing thinner and more and more data resides on cyber clouds, is it better to be a line or staff worker?arrow_forwardThe internal auditor of a small company has recommended to the CEO that it invest in a disaster recovery plan (DRP) because of several identified vulnerabilities. Traditional in-house DRP approaches are, however, not a viable option because the company lacks the necessary IT resources to implement and manage these tasks. The auditor has suggested that outsourcing disaster recovery to a cloud-based service provider may be a reasonable alternative. The CEO has no experience with cloud computing and has asked the internal auditor to provide him with more information. Required: Prepare a report outlining cloud computing. Your report should address the following: Describe how the services provided under cloud computing relate to disaster recovery planning. Outline the risks associated with this technologyarrow_forward
- 3. Which of the following is not a computer facility control? (a) Place the data processing center where unauthorized individuals cannot gain entry to the facility. (b) Limit access to the data processing center all employees of the company. (c) Buy insurance to protect against loss of equipment in the computer facility. (d) Use advanced technology to identify individuals who are authorized access to the data processing center. 4.For internal control over computer program changes, a policy should be established requiring that: (a) All proposed changes be approved by a responsible individual and logged. (b) The programmer designing the change should be responsible for ensuring that the revised program is adequately tested. (c) All program changes be supervised by the information system control group. (d) To facilitate operational performance, superseded portions of programs should not be deleted from the program run manual. 5. Auditing "around the computer": (a) Assumes that accurate…arrow_forwardIs it an entity inherent risk for the information below? A computer network and personal computers support Marco Inc's accounting and inventory management systems. Personal computers are located in the offices and warehouse and a central server handles all accounting and inventory files. Printers are located in areas where employees need printed documents and other records routinely. The computer is used to control and process most transactions, to print documents, prepare accounting records, and prepare periodic financial statements. Marco uses commercial software recommended by their auditor. To date, they have had only the usual startup problems. They have used it for two years and have upgraded it once. If it is an inherent risk, what is the feature of the firm that will possibly affect inherent risk and explain how and why; that is whether it increases or decreases inherent risk. Please address a specific risk to the accuracy of the financial statements with the "how" and whether…arrow_forwardA group of IT experts disclosed the “internet cookies” vulnerability of your organisation in a recent online security test. Describe to your management the security concerns that “internet cookies” portend?arrow_forward
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