What are the classes of transcription errors?

Q: What type of internal control would recalculating the totals on a computer report be?

A: Step 1:   The rules and procedures implemented by a company to ensure the integrity of the…

Q: How do automated authorization procedures differ from manual authorization procedures?

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Q: What is the Tolerable Error Rate?

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Q: Define Errors.

A: Accounting error means occurrence of mistakes which are committed while recording the transactions…

Q: How would you find errors in recording transactions and what is the process to correct errors?

A: Often, adding a journal entry will fix an accounting error. The journal entry adjusts the retained…

Q: What items could increase the risk of material misstatement?

A: Risk of material misstatement (ROMM) is a risk that the financial statements when audited will…

Q: What information would a batch control record contain?

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

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Q: What are the possible reasons for keeping incomplete records?

A: Incomplete records:   It refers to a situation where an organization does not use double entry book…

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: How long must audit workpapers be maintained?

A: Definition:   Audit planning: Audit planning includes the designing of audit strategy for the…

Q: Which answer below is the result of this error?

A: In the given case, the journal entry is recorded incorrectly. Due to which the service revenue will…

Q: What are the three general problems associated with data redundancy?

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Q: What are the major procedural differences in applying the current rate and temporal methods of…

A: The key differences related to monetary assets carried at historical cost. Under the temporal…

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

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Q: How are errors corrected if they're not properly accounted for?

A: The errors can happen as all the things are human oriented. The error can happen as the process of…

Q: What is the effect of not returning all client-provided documents upon request?

A: If an auditor is not returning all client provided documents upon request, then this act is an…

Q: What kinds of information can be confirmed with a transfer agent?

A: The transfer agent is an entity that holds the information about the financial records of the…

Q: Distinguish between counterbalancing and noncounterbalancing errors. Give an example of each.

A: Difference:Counterbalancing errors are the type of errors that cancels out or equalize other error…

Q: What is the difference between the Codification and the Codification Research System?

A: FASB: The FASB is an independent, designated and non-profit organization established by SEC for…

Q: What are reversing entries? Are they required by GAAP?

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Q: controlling translation exposure?

A: Translation exposure refers to the change in the value of assets and liabilities which is affected…

Q: What is Projected Misstatement?

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Q: Why are denormalized tables used in data ware-houses?

A: Data Warehouse:   Data warehouse is also termed as enterprise data warehouse. It can be defined as…

Q: Briefly describe record counts, batch totals, and hash totals. What types of errors in input…

A: Input controls: It is created to provide reasonable guarantee of received data for processing by the…

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: According to our authors, what is a misstatement? Provide examples.

A: Misstatement: A remark that is not accurate or the provision of erroneous information is referred to…

Q: what is a validity check?

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Q: Name the error which was made under the following circumstances:

A: The error of omission is a type of error that takes the account of results caused due inactions or…

Q: What type of internal control is preparing batch totals for check processing?

A: Internal controls: It refers to those rules and procedures that are implemented by an enterprise for…

Q: How would you find errors in recording transactions and what is the process to correct errors?…

A: Accounting error: Accounting errors can be defined as omission of the fundamental accounting…

Q: What is changed data capture?

A: Definition: Database: A database can be defined as the collection of data in an organized manner…

Q: What is an uncorrected misstatement?

A: Auditing:   Auditing refers to an independent examination of financial information of any…

Q: What is a MIS report, why is it  prepared?

A: MIS is Management Information System. Management information system is an integrated collection of…

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 is the procedure used?

A: Journal entry is a basic accounting entry and is the first step in double entry system of…

Q: What is the purpose of a check digit?

A: A check digit is a form of control check which is used for the purpose of error detection on…

Q: What type of internal control is verifying source documents before recording transactions?

A: Step 1:   The verification of source documents means to check if all the documents relating to a…

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 problems does the data cleansing step attempt to resolve?

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

Q: Describe the problems that might come from using an incorrect bill of material in MRP.

A: About Bill of Material Once of the most significant master data elements of any manufacturing ERP…