a. Financial vice presidentb. Corporate controllerc. Board of directorsd. Corporate stockholdersa. Preparation of monthly statements to customers and maintenance of the accounts receivable subsidiary ledger.b. Posting to the general ledger and approval of additions and terminations relating to the payroll.c. Custody of unmailed signed checks and maintenance of expense subsidiary ledgers.d. Collection of receipts on account and maintaining accounts receivable records.a. Honesty testing to hire only honest individuals.b. Organizationally separating the data processing functions from the accounting functions.c. A manually prepared control total to verify that all transactions are correctly processed through the system.d. Storing supplies in a locked room with only the supply clerk having a key to the room.b. Administrative and accountingc. Environment, general, and applicationd. Input, processing and outputPractice Multiple Choice from:Test on Internal Control: Chapter 14Note: There are pages and 74 points on this exam.Please scan the entire exam before you begin. This will allow you to start with the question with which you feel the most comfortable. GOOD LUCK!!!!!!!!!!!!!!!!!!!!!!PART 1: MULTIPLE CHOICE and short answer 74 points1. Which of the following terms best describes the type of control evidenced by a segregation of duties between computer operators and computer programmers?a. System development controlb. Hardware controlc. Applications controld. Organizational control2. Your firm has recently converted its purchasing cycle from a manual process to an online computer system. Which of the following is a probable result associated with conversion to the new automatic system?a. Processing errors are increasedb. The firm=s risk exposures are reducedc. Processing time is increasedd. Traditional duties are less segregated3. Within a computer processing activity, which control procedure typically leaves no visible or machine-readable evidence that the procedure was performed?a. Proper segregation of functionsb. Program changes for a computer applicationc. Approval of the program changesd. Computer-generated exception reports4. Feedforward, feedback, and preventive control procedures are an important part of every system. Feedback refers to a process ofa. Communicating organizational plansb. Adjusting the system after the factc. Adjusting a system during operationd. Adjusting a system according to prediction5. Which of the following is the best program for the protection of a company=s vital information resources from computer viruses?a. Stringent corporate hiring policies for staff working with computerized functions.b. Existence of a software program for virus prevention.c. Prudent management policies and procedures instituted in conjunction with technological safeguards.d. Physical protection devices in use for hardware, software, and library facilities.6. Program documentation is a control designed primarily to ensure thata. Programmers have access to the tape library or information on disk filesb. Programs do not make mathematical errorsc. Programs are kept up to date and perform as intendedd. No one has made use of the computer hardware for personal reasons7. Alex, Inc. is in the process of designing a new sales order processing system. The data processing department has completed the process of design, programming, and debugging. Before it is placed in operation, the computer processing department should test the program using not only typical data but alsoa. Incorrect or incomplete datab. Live datac. Source datad. Debug data8. Which one of the following control functions is not the responsibility of the input-output control group of the data processing department?a. Review of the efficiency and effectiveness of systems designb. Scanning the console logc. Review and distribution of computer output and resolution of control totalsd. Maintenance of an error log9. When erroneous data are detected by computer program controls, such data may be excludedfrom processing and printed on an error report. This error report should be reviewed and followed up by thea. Supervisor of Computer Operationsb. Systems analystc. Application ownerd. Computer programmer10. The online data entry control called preformatting is:a. A program initiated prior to regular input to discover errors in data before entry sothat the errors can be corrected.b. A check to determine if all data items for a transaction have been entered by the terminal operator.c. A series of requests for required input data that requires an acceptable response to each request before a subsequent request is made.d. The display of a document with blanks for data items to be entered by the terminal operator.11. If, in reviewing an applications system, it is noted that batch controls are not used, which of the following statements by the user of the system is acceptable as a compensating control?a. AThe supervisor must approve all inputs.@b. AWe do a 100% key verification of all data input.@c. AWe do a 100% physical review of the input document to the output document.@d. AThe volume of transactions prohibits batching.@12. An online bank teller system permitted withdrawals from inactive accounts. The best control for denying such withdrawals is aa. Proof calculationb. Check digit verificationc. Master file lookupd. Duplicate record check13. A company=s labor distribution report requires extensive corrections each month because of labor hours charged to inactive jobs. Which of the following data processing input controls appears to be missing?a. Completeness testb. Valid code checkc. Limit testd. Control total14. Omen Company is a manufacturer of men=s shirts and distributes weekly sales reports to each sales manager. The quantity 2R5 appeared in the quantity sold column for one of the items on the weekly sales report for one of the sales managers. The most likely explanation for what has occurred is thata. The output quantity has been stated in hexadecimal numbersb. The computer has malfunctioned during executionc. The printer has malfunctioned and the AR@ should have been a decimal pointd. The program did not contain a data checking routine for input data15. A customer inadvertently orders part number 1234-8 instead of 1243-8. Which of the following controls would detect this error during processing?a. Hash totalb. Check digitc. Limit checkd. Financial batch total16. Which of the following