According to COSO, one of the most important control activities is the segregation of incompatible functions. What are the implications if functions are not separated?

Q: Two characteristics contributing to reliability are ‘neutrality’ and ‘prudence’. Explain the meaning…

A: Neutrality and Prudence are two characteristics of reliability of accounting information. Neutrality…

Q: Identify the traditionally segregated duties in noncomplex IT systemsand explain how increases in…

A: In the traditional accounting system, the duties related to the transaction authorization,…

Q: How is EDI more than technology? What unique control problems may it pose?

A:

Q: In the consideration of internal control, the operating effectiveness of controls is tested by:…

A: internal controls -    internal controls are the policies and procedures laid down by the management…

Q: "hich of the following is not a principle ôf internal Control?

A: Internal controls are the controls used to safeguard the business from internal frauds. Internal…

Q: Why is human behavior considered one of the biggest potential threats to operating system integrity?

A: Operating system: The system which provides the basic functioning of a device by interconnecting the…

Q: Controls are only as good as the predetermined standard on which they are based. Discuss the…

A: Predetermined standard are the estimate or budgets that are made in the beginning of the period.…

Q: This method of documenting understanding of internal control structure is advantageous because it…

A: This method of documenting understanding of internal control structure is advantageous because it…

Q: Which of the following is not true concerning control activities? a.Control procedures is another…

A: Control activities relate to those activities designed to reduce the chances of risk and failure…

Q: For the given scenario, identify the weakness or weaknesses in internal control and opposite the…

A: Internal control is a process, performed by a board of directors of business, management and other…

Q: Which of the following is not one of the elements of a good system of internal control? a.Control…

A: Internal controls are the policies and procedure implemented by the organization to control day to…

Q: List the disadvantages of decentralization.

A: Decentralization refers to a company's top management delegating authority to subunits of the…

Q: For each of the internal controls: a. Describe the risks that the above-mentioned internal control…

A: For prevention of fraud, theft, and manipulation of records, control over the internal…

Q: What are the disadvantages of a Double Entry System?

A: Double entry system is a method of keeping records of transaction in the books of accounts, where…

Q: True or False Segregation of duties is one of the categories of control activities.

A:

Q: What is the risk of assessing Control Risk too low?

A: Definition:   Tests of controls: Tests of controls form the part of audit procedures to be…

Q: Give an explanation about this statement: Why does control or internal control fails?

A: Internal control refers to the process of implementing and exercising the various mechanisms, rules,…

Q: Which of the following is NOT an advantage ofcommercial software?a. Costb. Independencec.…

A: The software market has infiltrated every aspect of a business or service as technology has…

Q: Explain the risks associated with the creation of unnecessary roles and why it can happen.

A: Role Based Access Control: RBAC can be defined as an access control which is used to restrict the…

Q: In the absence of protocols, networks would be unusable. Describe the significance of these…

A: Answer: Concept: Network can be defined as the connection of devices sharing data provided under…

Q: Describe some limitations of internal conrol systems. Why do limititations on internal control…

A: Please find the answer to the above questions below:

Q: Disruptions to operations are a common side effect of implementing an ERP. Explain the primary…

A: ERP: Enterprise resource planning is management software that helps in integrating all the…

Q: What is the purpose for a Control Environment assessment?

A: Control environment: Control environment is one of the components of internal control over…

Q: What are the limitations on Control Activities?

A: Internal control: Internal control is a process which ensures continuous reliability of…

Q: What are (a) an internal control deficiency, (b) a significant deficiency, and (c) a material…

A:

Q: If detective controls signal error flags, why shouldn’t these types of controls automatically make a…

A:

Q: Controls are only as good as the predetermined standard on which they are based. Discuss the comment…

A: Predetermined standard are the estimate or budgets that are made in the beginning of the period.…

Q: Networks would be inoperable without protocols. Explain their importance and what functions they…

A: Protocol:   Protocols are the rules and instruction which are formed and followed to send or receive…

Q: What is database conversion? Why is it risky activity, and what precautions should be taken?

A: Database Conversion: Database conversion is defined as the process of transferring the data from the…

Q: When is the timing of substantive procedures most flexible? O detection risk is assessed as low O…

A: Substantive procedure refers to a process performed by the auditor in order to detect the material…

Q: Which of the following is NOT a common type of white box test of controls?a. completeness testsb.…

A: Inference tests is NOT a common type of white box test of controls so the correct option in the…

Q: Which of the following statements best describes the phrase, “evaluating the design of a control”?…

A: "Evaluating the design of control" means Considering whether the control, individually or in…

Q: If detective controls signal error flags, why shouldn’t this type of controls automatically make a…

A: Definition:   Internal control: Internal control involves the norms and rules which are followed…

Q: Which of the following is NOT a data communications control objective?a. maintaining the critical…

A:

Q: What is the concept of reasonable assurance? What are the key limitations of an internal…

A:

Q: what are the advantages and disadvantages of decentralization?

A: Decentralization: When the power of decision making is transferred from the higher authority to…

Q: The quality of the environment in which internal control operates has a pervasive effect on many…

A: Concept Pervasive effect               Pervasive effect means that the effect is spread to most of…

Q: Explain why monitoring alone cannot completely eliminate the agency costs

A: The costs incurred as a result of conflict of interest between company and its stakeholders is known…

Q: What are some limitations of using the direct write-off method?

A: In order to increase sales generally business enterprises sales the goods on a credit basis. When…

Q: What are some limitations of internal control?

A: The below-mentioned points indicate that every system has its frailties and despite such…

Q: Management and auditor are concerned about segregation of duties in computer based systems? Why? How…

A: The process or technique implemented by an entity to increase the operational efficiency and…

Q: Why is it often difficult to obtain competent and meaningful user involvement in the SDLC?

A: System Development Life Cycle (SDLC): System Development Life Cycle (SDLC) is a system development…

Q: Which of the following is NOT an example of a significant deficiency in internal control?

A: Statement 2,3 and 4 are examples of significant deficiency in internal control as they are…

Q: Discuss limitations to establishing the system of internal controls at organization.

A: Internal controls are those rules and procedures established by a company to ensure the correctness…