The following questions concern controls for automated information systems. Choose the best answer.

a. Small Manufacturing Company has only two staff members that get involved in accounting: the owner and a full-time bookkeeper/receptionist. Which of the following functions is it most important that the owner do, rather than the receptionist?

(1) Review of master file changes

(2) Transferal of backup tapes offsite

(3) Approval of programming standards

(4) Printing of accounts receivable aging report

b. Which of the following items should be assessed as part of a company's control environment?

(1) Program change procedures

(2) Cheque signature procedures

(3) Disaster recovery plans

(4) Document sequencing methods

c. JKM Company is an on-line Internet-based bookstore. Customers place orders, inputting their credit card numbers. All Internet electronic traffic is encrypted, but pass¬ words are not required for customers. To prevent hackers from accessing JKM's accounting systems, JKM should

(1) use firewalls to restrict access of known problem Web sites.

(2) use dial-back methods to connect with all customers who want to place an order.

(3) use a dedicated, stand-alone computer for Web site systems.

(4) have detection software to prevent junk E-mail and other abuses.

d. To help ensure that only authorized payments for sup¬ plier invoices are sent using EDI, a company should

(1) match electronic fund transfer amounts to purchase orders.

(2) compare control totals of supplier invoices to control totals of payments sent.

(3) compare record counts sent to record counts received

(4) encrypt all Internet electronic traffic.