Learning Objective 3-6
1) Which of the following risks is
NOT
associated with financial information?
A) errors in recording and updating the financial accounting information
B) unauthorized access to the financial accounting records
C) loss of the data in the financial accounting records
D) loss of product quality
2) A computerized accounting system requires users to type in a password before they are allowed to enter data in the system. This control is primarily designed to ________.
A) prevent errors in recording and updating the financial accounting information
B) prevent unauthorized access to the financial accounting records
C) prevent loss of the data in the financial accounting records
D) eliminate the risk of incorrect acceptance
3) A computerized accounting system stores duplicate accounting data in a secure, remote location. This control is primarily designed to prevent ________.
A) errors in recording and updating the financial accounting information
B) unauthorized access to the financial accounting records
C) loss of the data in the financial accounting records
D) incorrect acceptance of material items
4) A computerized accounting system will not allow anyone to enter data that puts the accounting equation out of balance. This control is primarily designed to prevent ________.
A) errors in recording and updating the financial accounting information
B) unauthorized access to the financial accounting records
C) loss of the data in the financial accounting records
D) the risk of incorrect acceptance
5) An electronic cash register in a department store will not allow anyone to enter a sales transaction without an authorization code. This control is primarily designed to prevent ________.
A) errors in recording and updating the financial accounting information
B) unauthorized access to the financial accounting records
C) loss of the data in the financial accounting records
D) incorrect acceptance of material items
6) At a fast-food restaurant, employees punch separate keys for each item on the menu that a customer orders. This control is primarily designed to prevent ________.
A) errors in recording and updating the financial accounting information
B) unauthorized access to the financial accounting records
C) loss of the data in the financial accounting records
D) incorrect acceptance of material items
7) A company’s computer system is housed on a separate floor of the company’s corporate headquarters. Employees must enter their thumbprints on an electronic lock before the elevator will take them to this floor. This control is primarily designed to prevent ________.
A) errors in recording and updating the financial accounting information
B) unauthorized access to the financial accounting records
C) loss of the data in the financial accounting records
D) incorrect acceptance of material items
8) An accounting clerk compares a bill received from a supplier with the packing slip that accompanied the shipment from the supplier. This control is primarily designed to prevent ________.
A) errors in recording and updating the financial accounting information
B) unauthorized access to the financial accounting records
C) loss of the data in the financial accounting records
D) incorrect acceptance of material items
9) Accounting software guarantees that all transactions have been recorded properly.
10) Computerized accounting systems make sure that the accounting equation is in balance.
11) A computerized accounting system is completely safe from fraud.
12) A company should keep a copy of the data in its accounting information system at a remote location.
13) A company should never allow copies of its accounting data to be stored outside of the company.
14) Passwords and user IDs are controls that limit access to a company’s computer information system.