A sales transaction was coded with an invalid customer account code (XXX-XX-XXX rather than XXX-XXX-XXX). The error was not detected until the updating run when it was found that there was no such account to which the transaction could be posted. A control procedure that would serve as a preventive control for this situation would be: Select one: O a. Hash total O b. Check digit O c. Validity test O d. Either B or C

A sales transaction was coded with an invalid customer account code (XXX-XX-XXX rather than XXX-XXX-XXX). The error was not detected until the updating run when it was found that there was no such account to which the transaction could be posted. A control procedure that would serve as a preventive control for this situation would be: Select one: O a. Hash total O b. Check digit O c. Validity test O d. Either B or C

Accounting Information Systems

10th Edition

ISBN:9781337619202

Author:Hall, James A.

Publisher:Hall, James A.

Chapter8: Financial Reporting And Management Reporting Systems

Section: Chapter Questions

Problem 2MCQ

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Similar questions

An employee in the receiving department keyed in a shipment from a remote terminal and inadvertently omitted the purchase order number. The best systems control to detect this error would be aa. batch total.b. completeness test.c. sequence check.d. reasonableness test.e. compatibility test.
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FireballCompany requires that all documents supporting a check (purchase order, invoice, and receiving report) be canceled by punching a hole through the packet. Why is this practice required?What might happen if it were not?
Which of the following control procedures mitigates the threat of duplicate payments? Select one: a. When an invoice is paid, the invoice and the entire voucher package should be canceled (for example marked “paid”) in a way that it cannot be submitted again. b. When evaluated receipt settlement (invoice-less system) is used, receiving reports need not be marked as paid as no invoices are generated. c. Photocopied invoices can be paid. d. Invoices should be approved for payment only when accompanied by a valid purchase order.
Which of the following is NOT an example of application control?* a. Pre-filled forms are already sent to users to minimize input errors b. After processing, the daily sales summary are reconciled with the individual sales invoices processed c. Reasonableness tests on acceptable working hours are embedded in the payroll software d. An equipment failure causes an error message on the monitor
A control designed to validate a transaction at the point of data entry is a. recalculation of a batch total. b. a record count. c. a check digit. d. checkpoints. e. recalculation of hash total.
Choose only one answer as well as state their reasons/rationale for the answer chosen. 3) A sales representative mistakenly entered a nonexistent account number into the system. As a result, the goods were shipped but the customer was never billed. Which type of control would be most effective in preventing this type of problem?a. Turnaround documentb. Completeness checkc. Field checkd. Validity checke. Check digit verification
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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Choose only one answer as well as state their reasons/rationale for the answer chosen. A customer entered the wrong account number on the memo line of the check mailed to the company. Consequently, another customer’s account was credited for that payment. The most effective way to prevent such problems would be to use:a. Turnaround documentsb. A validity check of customer account numbersc. Closed loop verificationd. Check digit verification of customer account numbers
Explain the difference between an attribute and an exceptioncondition. State the exception condition for the audit procedure: The duplicate salesinvoice has been initialed indicating the performance of internal verification.
Which statement is NOT true? Batch processinga. is subject to deadlocks when processing commonaccounts.b. permits data to be edited in a separate computerrun.c. can use databases and flat files.d. can be initiated from a terminal.