Explain the technique known as destructive update.

Q: Give an example of a corrective control.

A: Internal Controls:   Internal controls are the controls established within an organization to check…

Q: Define breakup value

A: The breakup value is the valuation of the company for liquidation in the market. It is best known as…

Q: Why can the formal announcement of a new system technique be crucial?

A: Formal Announcement:   Formal announcement in context to a new system technique means to make the…

Q: Explain breakeven analysis.

A:

Q: What is an Audit Hook?

A: Auditing: The analytical process of evaluating and assessing the accounting information furnished by…

Q: At which point are errors are most costly to correct? a. programming b. conceptual design c.…

A:

Q: Describe the shortcomings of the direct write-off method.

A: Direct write-off method: This method does not make allowance or estimation for uncollectible…

Q: Why is poor-quality systems documentation a prevalent problem?

A: Computer Based Information System: Computer based information system refers to the record of data…

Q: Explain Anti-dilutive Security

A: Explanation to Securities Securities are referred to as the tradeable financial instruments which…

Q: What is the control issue related to reentering corrected error records into a batch processing…

A:

Q: Give one example of an error that a check digit control detects.

A:

Q: Why should test data be saved after it has been used?

A: Test Data: The data which prepared before the conduction of a test to evaluate its results is known…

Q: What are some advantages of the Direct Write-Off method? What are some disadvantages of the Direct…

A: Direct Write Off Method: According to Direct Write off method, Bad Debt Expense is recognized once…

Q: Explain red herring

A: Red herring It is an introductory prospectus recorded with the Securities and Exchange Commission…

Q: Define red-line method

A: Answer: A red-line strategy is nothing but a tactic used for controlling the stock, as it is the…

Q: Describe Detection Risk.

A: Risk: It is the uncertainty about the future events of the company. The adverse chances of choosing…

Q: What does the elimination process accomplish?

A: Intercompany elimination:   Intercompany elimination refers to the process in which the transactions…

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: Explain direct write off method.

A:

Q: Discuss the risks from equipment failure and how they can be controlled.

A: Under data communication, equipment failure can be defined as the special device or equipment that…

Q: What are the Basic Concepts and Terminology of Replacement-Analysis?a

A: Assets: Assets are those items that provide value for money and future economic benefit for an…

Q: Define check tampering.

A:

Q: What is the equipment replacement?

A: Under replacement, one is focused with equipment and machinery that worsens with the passage of…

Q: Explain term Renovation and Refinancing with example?

A: A renovation loan is a type of loan that includes the amount of mortgage as well as the amount of…

Q: Explain how the magnetic audit trail functions.

A:

Q: Discuss the correction of errors in more detail.

A: Errors in Accounting: Error is a mistake committed in book keeping.

Q: Give an example of a preventive control.

A:

Q: Why is it necessary to decompose the DFD to a level of high detail before preparing the structure…

A: Definition: Data flow diagram (DFD): Data flow diagram can be defined as the method to show the data…

Q: Describe the fundamentals of Replacement-Analysis?

A: Replacement analysis is the process where it is determined whether it would be beneficial to replace…

Q: What are the risks that exist in the conversion cycle and the changes needed to reduce the risks?

A: The risks involved in the current system of the conversion cycle are as given below: There can be a…

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: Explain three common approaches of system cutover. Also describe their advantages and disadvantages.

A: System cutover:   System cutover is defined as the conversion of data from old systems to the new…

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

A:

Q: Discuss some of the techniques available to reduce risk exposure.

A: Risk exposure means possible losses which can be occur in future due to specific projects or…

Q: How can spooling present an added exposure?

A:

Q: Explain Replacement-Analysis Fundamentals?

A: Replacement-analysis fundamentalUnder this, the decision regarding the replacement of obsolete as…

Q: Explain the lockbox system.

A: A lockbox system is a collection of lockboxes strategically located near geographic clusters of firm…

Q: ust be either overhauled or replaced with a new syst ro alternatives:

A: The NPV can be computed as follows:

Q: Define the term spoilage.

A: Definition:   Product costs: The costs incurred to acquire the merchandise, ship the stock, prepare…

Q: Describe the steps to be taken to correct an error.

A: Accounting Error:   It is an unintentional mistake in recording an accounting entry and is…

Q: What are the risks associated with conversion cycle and changes need to reduce that risks?

A: Cash conversion cycle The cash conversion cycle is a method that tracks the time a company would…

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…