Explain why monitoring alone cannot completely eliminate the agency costs

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: What are agency problems?

A: Owners of the company are shareholders. The number of the shareholders for a corporation will be…

Q: What is meant by data mining, and why must technical analysts be careful not to engage in it?

A: Data mining: Data mining is considered as a process utilized by corporations to turn raw data in to…

Q: According to COSO, one of the most important control activities is the segregation of incompatible…

A: Separation of duties refers to the means through which no single or individual person has sole…

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: What is the fundamental concept behind the rule of least access? Explain why this is a potential…

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Q: Why an internal control system can only provide reasonable assurance on the achievement of an…

A: Internal Control is the process designed, implemented and maintained by those  charged with…

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…

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A: In finance, the agency problem refers to a conflict of interest between the management of the…

Q: In scanning environment, why the strategic auditor focuses more on external environment rather than…

A: Environmental scanning refers to the possession and utilization of knowledge regarding different…

Q: How can intranet expansion increase risk to an organization?

A: Organization: Organization refers to the group of organized people with a particular purpose of…

Q: How can a poorly designed database result in unintentional loss of critical records?

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Q: What two types of exposures can close supervision of the receiving department reduce?

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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: Define agency conflict

A: Agency conflict denotes to the conflicts that arise between the agent and Principal. In the finance…

Q: When does an agency problem happen?

A: Agency problem is the probelm of difference in opinion of management and the shareholders.

Q: how does general control area of systems development and program change impact day-to-day…

A: Accounting Information system:  The Accounting Information System is a system that a business uses…

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: Identify instances for which feedback becomes useless in helping to control activities.

A: Definition: Internal Control: Internal control refers to the plan of a company. Implementation of…

Q: How does the Representational faithfulness is enhanced if information is free from error?

A: Accounting:   Accounting is the process of recording the financial transaction of the organization…

Q: What are the risks from subversive threats?

A: Taking illegal access over a firm internal system network by doing activity of surpassing the…

Q: What is an agency problem?

A: Agency problems also known as principal-agent problems  are conflicts of interest between managers…

Q: What are the limitations on Control Activities?

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

Q: What tests may be conducted for identifying unauthorized program changes?

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

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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: Why might firm decide to implement only certain modules in an an ERP system rather than a complete…

A: ERP is a software used by companies in managing their operating activities electronically in a more…

Q: What are valid weaknesses of NPO?

A: Not for profit organization have certain weaknesses. some for them are- 1. Limited Purposes In order…

Q: Operational risks may result from breakdowns in ______ procedures, people and systems as opposed to…

A: Operational risks Operational risks are referred to as that risk that includes errors because of the…

Q: What are some of the reasons that ABM implementation may lose the support of highermanagement?

A: ABM (account-based marketing) is a company marketing technique that focuses efforts on a small…

Q: COSO to Assess IT Controls

A: Answer:  Internal control is very basic measure to minimize the risk in any organization. In today's…

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

A: Control risk refers to the probability of financial statements that were considered wrongly stated…

Q: describe mechanisms that discipline fi nancial reporting quality and the potential limitationsof…

A: The mechanism that discipline financial reporting quality includes the free market and incentives…

Q: What is an agency problem?

A: The agency drawback may be a conflict of interest that happens once agents do not absolutely…

Q: What are some limitations of internal control?

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

Q: Two potential pitfalls encountered in the design of performance indicators and measurement systems

A: Transfer price is the price quoted between the departments or companies that are related to each…

Q: What problems does the data cleansing step attempt to resolve?

A: Accounting information system : AIS is a structure used in business for collecting, storing,…

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: Define agency problems, and describe how they give rise to agency costs.

A: Agency problems occur when the managers use the firm's resources to invest in projects that may not…

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…