Multiply Choice
1. Computer applications use routines for checking the validity and accuracy of transaction data called
a. operating systems.
b. edit programs.
c. compiler programs.
d. integrated test facilities.
e. compatibility tests.

2. How does a direct access file processing system edit individual transactions?
a. takes place in a separate computer run
b. takes place in online mode as transactions are entered
c. takes place during a backup procedure
d. is not performed due to time constraints
e. is not necessary

3. Which of the following is an example of an input control?
a. making sure that output is distributed to the proper people
b. monitoring the work of programmers
c. collecting accurate statistics of historical transactions while gathering data
d. recalculating an amount to ensure its accuracy
e. having another person review the design of a business form

4. A control designed to validate a transaction at the point of data entry is
a. recalculation of a batch total.
b. a record count.
c. a check digit.
d. checkpoints.
e. recalculation of hash total.

5. In a computer system, how are accounting records posted?
a. master file is updated to a transaction file
b. master file is updated to an index file
c. transaction file is updated to a master file
d. master file is updated to a year-to-date file
e. current balance file is updated to an index

6. The controls in a computerized system are classified as
a. input, processing, and output.
b. input, processing, output, and storage.
c. input, processing, output, and control.
d. input, processing, output, storage, and control.
e. collecting, sorting, summarizing, and reporting.

7. An employee in the receiving department keyed in a shipment from a remote terminal and inadvertently omitted the purchase order number. The best systems control to detect this error would be a
a. batch total.
b. completeness test.
c. sequence check
d. reasonableness test.
e. compatibility test.

8. In an automated payroll processing environment, a department manager substituted the time card for a terminated employee with a time card for a fictitious employee. The fictitious employee had the same ay rate and hours worked as the terminated employee. The best control technique to detect this action using employee identification numbers would be a
a. batch total.
b. record count.
c. hash total.
d. subsequent check.
e. financial total.

9. SOX legislation calls for sound internal control practices over financial reporting and requires SEC-registered corporations to maintain systems of internal control that meet SOX standards. An integral part of internal control is the appropriate use of preventive controls. Which of the following is not an essential element of preventive control?
a. separation of responsibilities for the recording, custodial, and authorization functions
b. sound personnel practices
c. documentation of policies and procedures
d. implementation of state-of-the-art software and hardware
e. physical protection of assets

10. Which of the following is NOT a test for identifying application errors?
a. reconciling the source code
b. reviewing test results
c. retesting the program
d. testing the authority table

11. Which of the following is NOT a common type of white box test of controls?
a. completeness tests
b. redundancy tests
c. inference tests
d. authenticity tests

12. An electronic walk-through of the application’s internal logic is called
a. a salami logic test.
b. an integrated test.
c. tracing.
d. a logic bomb test.