a)
To suggest: Monitoring activity for credit approval.
Introduction: Monitoring activities are implemented to review the process and control the variances in the process and reduce the deviations from the standards.
b)
To suggest: Monitoring activity for removal of terminated employee access to computer systems.
Introduction: Monitoring activities are implemented to review the process and control the variances in the process and reduce the deviations from the standards.
c)
To suggest: Monitoring activity for new background check.
Introduction: Monitoring activities are implemented to review the process and control the variances in the process and reduce the deviations from the standards.
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- Which of the following is NOT a general control?* a. Backup of live data b. Use of passwords c. Setting an acceptable range for working hours d. Calamity-proof IT facilities ABOUT AUDITING/ACCOUNTING TOPICSarrow_forwardOperating system security involves policies, procedures, and controls that determine who can access the operating system. User access privileges are assigned to individuals and to entire workgroups authorized to use the system.The way access privileges are assigned influences system security. Priviliges should be carefully administered and closely monitored for compliance with organizational policy. Choose one of the options below, that is not a test of control of the audit objective relating to access privileges. a. Review employee records to determine whether users have formally acknowledged their responsibility to maintain the confidentiality of company data.b. Review the privileges of a selection of user groups and individuals to determine if their access rights are appropriate for their job descriptions and positions.c. The auditor should verify that individuals are granted access to data and programs based on their need to know.d. Review the account lockout policy and procedures…arrow_forwardMatch each of the following control activities with its definition. Control Activities Definitions 1. Separation of duties 2. Physical controls 3. Proper authorization 4. Employee management 5. Reconciliations 6. Performance reviews a. The company should maintain security over assets and accounting records.b. Management should periodically determine whether the amounts of physical assets of the company match the accounting records.c. The company should provide employees with appropriate guidance to ensure they have the knowledge necessary to carry out their job duties.d. The actual performance of individuals or processes should be checked against their expected performance.e. Authorizing transactions, recording transactions, and maintaining control of the related assets should be separated among employees.f. To prevent improper use of the company’s resources, only certain employees are allowed to carry out certain business activities.arrow_forward
- When planning the audit of internal controls for an issuer, the audit team shoulda. Identify significant accounts, locations, and assertions.b. Conduct a walkthrough of the internal control process.c. Make inquiries of employees regarding the existence of control activities.d. Reperform control activities performed by client employees to determine theireffectiveness.arrow_forwardWhich of the following controls would most effectively minimize the need to correct failures to collect required information in the account opening process? A quality review staff that checks paper applications to ensure all fields are complete An automated account opening platform that required data entry prior to allowing the accoun to be opened Requiring that a manager review and apprive all new account applications Documenting a procedure that sets forth the steps required to open an accountarrow_forwardA company implements internal controls to improve the chances that employee will function according to the plans and standard operating procedures developed by the management team. Select one: True Falsearrow_forward
- Written Policies and Procedures as a part of internal control system serves all of the following objectives, except a. Provide a source of continuity and a basis for uniformity. b. Serve as reference material for future c. Helps discrepancies to be resolved immediately d. Provide a training tool for new employeesarrow_forwardWhat is the purpose of the following control procedures (i.e., what threats is it designed to mitigate)? f. Limit checks on hours worked for each time card.arrow_forwardWhich of the following is an example of an input control? a.making sure report that are distributed to the proper people b.monitoring the work of data entry clerks. c. Collecting accurate statistics of historical transactions while gathering data. d. Performing a check-digit test on a customer acount number e.Having anothr person review the design of a business formarrow_forward
- When a fraud has occurred within an organization, management must decide what follow-up action (s) to take. Briefly describe the three follow-up alternatives available to organizations?arrow_forwardThe IT Audit Director is responsible for monitoring and approving network-related changes to the company's production network. This is an appropriately designed preventive control. a) True b) Falsearrow_forwardTesting a company's internal controls through inspection of documents to see if approval or other checking was performed is specifically referred as ________. a. Documents Trial b. No Trial c. Audit Test d. Test of Controlsarrow_forward
- Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,Auditing: A Risk Based-Approach (MindTap Course L...AccountingISBN:9781337619455Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:Cengage LearningPkg Acc Infor Systems MS VISIO CDFinanceISBN:9781133935940Author:Ulric J. GelinasPublisher:CENGAGE L