The principles of internal control include: Multiple Choice Separate recordkeeping from custody of assets. Maintain minimal records. Use only computerized systems. Bond all employees. O Require automated sales systems.

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 (d) To facilitate operational performance, superseded portions of programs should not be deleted from the program run manual. 5.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…

Which of the following describes preventive controls? (Several choices may be correct.) Expected to be 100% effective. O Easily verified as to whether the control has worked. O Designed to stop misstatement from occurring. O Applied to each transaction prior to entering transactions into the accounting system. Applied to each transaction after transactions have been processed. O Designed to detect fraud or errors that have occurred.

One of the principles of internal control is "establishment of responsibility". This principle does not include: a. one person being responsible for one task. b. independent internal verification. c. authorisation of transactions. d. approval of transactions.

Allowing only certain employees to order goods and services for the company is an example of what internal control procedure? a.Proper authorization b.Independent verification c.Segregation of duties d.Safeguarding of assets and records

Is 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…

Which of the following software functions can help protect sales revenue from external and internal threats of theft? a) Reconcile inventory reductions with product issues from kitchen. b) Reconcile product issues from kitchen with guest check totals. c) Create over and short computations by server, shift, and day. d) All of the above e) Only a. and b. above

Segregation of Functions Comment on the specific risks (if any) that are caused by the following combination of tasks. A)  A sales manager, who works on commission based on gross sales, approves credit and has the authority to write off uncollectible accounts. B)  The warehouse clerk, who has custodial responsibility over inventory in the warehouse, updates the inventory subsidiary ledger and prepares an inventory summary for the general ledger department. C). The billing clerk bills customers and records sales in the sales journal. D).  The shop foreman approves and submits time cards to timekeeping and distributes paychecks to employees. E)  The accounting clerk posts to individual accounts receivable subsidiary accounts and performs the reconciliation of the subsidiary ledger and the GL control account.