Chapter 9 Controlling Information Systems Business Process and Application Controls TRUE FALSE 1 Specifying control goals is the first step in building a control matrix 2 In the control matrix the M stands for present controls 3 A control matrix is a tool that assists in evaluating the control goals and recommended control plans of an information system 4 Control efficiency addresses whether the control goals are being achieved 5 Control effectiveness addresses how individual control plans achieve multiple control goals 6 The purpose of security controls is to ensure that entity resources are protected from loss destruction disclosure copying sale or other misuse 7 Control redundancy addresses whether multiple control plans are directed toward the same control 8 Input control goals include those to ensure input validity input completeness and input accuracy 9 The use of the letter P in a control matrix represents a missing control plan 10 The most error prone and inefficient steps in an operations or information process is master file 11 A control plan that makes it easier to prepare the document initially and later to input data from the document is called document design ANS T ANS F ANS T ANS F ANS F ANS T goal ANS T ANS T ANS F updates ANS F ANS T ANS T ANS F ANS F input data ANS T ANS F ANS F ANS T ANS T ANS T ANS F 12 Written approval takes the form of a signature or initials on a document to indicate that the proper person has authorized the event 13 Online prompting helps guide the online entry of data by defining the acceptable length of each data field and often dictating the acceptable format of certain fields 14 Preformatted screens describes a computer system s asking the user for input or asking questions that the user must answer 15 Programmed edit checks are edits automatically performed by data entry programs upon entry of the 16 Another name for a reasonableness check is a credit limit check 17 Dollar totals represent a summarization of any numeric data field within the input document or record 18 The edit that compares calculations performed manually with those performed by the computer to determine if a document has been entered correctly is referred to as mathematical accuracy checks 19 A check digit is an extra digit that is added to an identification number to help control the accuracy with which the number is entered into a computer system 20 Confirm input acceptance is a control that helps ensure input completeness by informing the user that the input has been accepted and recorded 21 The control plan called data verification is designed to reduce the possibility that one person will misread or mis key data 22 A dependency check employs data encryption specifically public key cryptography to authenticate a system user s identity and to verify the integrity of a message transmitted by that user 23 A digital signature tests whether the contents of two or more data fields bear the correct logical ANS F relationship ANS F ANS T ANS F ANS T ANS T ANS F ANS T ANS F ANS T ANS T ANS T 24 An exception and summary report reflects the transactions that were accepted by the system and processed and those that were rejected by the system 25 Master data control plans regulate transaction processing by calculating control totals at various points in a processing run and subsequently comparing these totals 26 Document record counts are simple counts of the number of documents entered 27 A count of the number of invoices being paid by all of the customer remittances is a type of batch control total called a line or item count 28 The total dollar value of all invoice totals in a batch of sales invoices is called a hash total 29 A hash total is the general term to describe the summation of data that would not normally be totaled except for control purposes 30 A turnaround document is a document that is printed as an output of multiple computer processes and is used to capture and input a previous transaction 31 Batch control plans regulate information processing by calculating control totals at various points in a processing run and subsequently comparing those totals 32 In order to implement either a batch sequence check or cumulative sequence check transactions must be captured on prenumbered documents 33 Dollar totals are a summarization of the dollar value of items in the batch 34 In a batch sequence check a computer program sorts the transactions into numerical order checks the documents against the sequence number range and reports missing duplicate and out of range event data 35 The cumulative sequence check provides input control in those situations in which the serial numbers are assigned within the organization but later are not entered in perfect serial number sequence 36 Data encryption is a process that employs mathematical algorithms and keys to encode data so that it is unintelligible to the human eye MULTIPLE CHOICE 1 The two primary steps in preparing the control matrix include a b c d specifying control goals identifying recommended control plans specifying control plans specifying input goals specifying the control environment identifying information process goals specifying control procedures identifying process goals 2 The purpose of control goals is to ensure the successful accomplishment of the goals set forth for the operations process under consideration a b c d efficiency effectiveness security input ANS B are being employed in the most productive manner a b c d efficiency effectiveness security input 3 The purpose of control goals is to ensure that all resources used throughout the business process 4 The purpose of control goals is to ensure that entity resources are protected from loss destruction disclosure copying sale or other misuse a b c d efficiency effectiveness security input ANS T ANS T ANS T ANS A ANS A ANS C 5 Immediately endorsing incoming checks satisfies the control goal of a b c d ensure effectiveness of operations ensure update completeness and accuracy ensure input accuracy ensure security of resources 6 The purpose of input control goals is to ensure input validity completeness and accuracy a b update completeness and accuracy input accuracy c d none of the above ANS D ANS A In a control matrix the coding P 1 means a process 1 b process 1 is present c process 1 is missing d none of the above ANS D 7 8 a major control plan a missing control plan In a the columns representing control goals in a control matrix the coding M 1 means