Chapter 9—Controlling Information Systems: Business Process and Application ControlsTRUE/FALSE1. Specifying control goals is the first step in building a control matrix.ANS: T2. In the control matrix the M stands for present controls.ANS: F3. A control matrix is a tool that assists in evaluating the control goals and recommended control plans ofan information system.ANS: T4. Control efficiency addresses whether the control goals are being achieved.ANS: F5. Control effectiveness addresses how individual control plans achieve multiple control goals.ANS: F6. The purpose of security controls is to ensure that entity resources are protected from loss, destruction, disclosure, copying, sale, or other misuse.ANS: T7. Control redundancy addresses whether multiple control plans are directed toward the same control goal.ANS: T8. Input control goals include those to ensure input validity, input completeness and input accuracy.ANS: T9. The use of the letter P in a control matrix represents a missing control plan.ANS: F10. The most error prone and inefficient steps in an operations or information process is master file updates.ANS: F11. 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: T12. Written approval takes the form of a signature or initials on a document to indicate that the proper person has authorized the event.ANS: T13. 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.ANS: F14. Preformatted screens describes a computer system's asking the user for input or asking questions that the user must answer.ANS: F15. Programmed edit checks are edits automatically performed by data entry programs upon entry of the input data.ANS: T16. Another name for a reasonableness check is a credit limit check.ANS: F17. Dollar totals represent a summarization of any numeric data field within the input document or record.ANS: F18. 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.ANS: T19. 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.ANS: T20. Confirm input acceptance is a control that helps ensure input completeness by informing the user that the input has been accepted and recorded.ANS: T21. The control plan called data verification is designed to reduce the possibility that one person will misread or mis-key data.ANS: F22. 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.ANS: F23. A digital signature tests whether the contents of two or more data fields bear the correct logical relationship.ANS: F24. An exception and summary report reflects the transactions that were accepted by the system and processed and those that were rejected by the system.ANS: T25. Master data control plans regulate transaction processing by calculating control totals at various points in a processing run and subsequently comparing these totals.ANS: F26. Document/record counts are simple counts of the number of documents entered.ANS: T27. 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.ANS: T28. The total dollar value of all invoice totals in a batch of sales invoices is called a hash total.ANS: F29. A hash total is the general term to describe the summation of data that would not normally be totaled except for control purposes.ANS: T30. 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.ANS: F31. Batch control plans regulate information processing by calculating control totals at various points in a processing run and subsequently comparing those totals.ANS: T32. In order to implement either a batch sequence check or cumulative sequence check, transactions must be captured on prenumbered documents.ANS: T33. Dollar totals are a summarization of the dollar value of items in the batch.ANS: T34. 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.ANS: T35. 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.ANS: T36. Data encryption is a process that employs mathematical algorithms and keys to encode data so that it isunintelligible to the human eye.ANS: TMULTIPLE CHOICE1. The two primary steps in preparing the control matrix includea. specifying control goals, identifying recommended control plansb. specifying control plans, specifying input goalsc. specifying the control environment, identifying information process goalsd. specifying control procedures, identifying process goalsANS: A2. The purpose of ____ control goals is to ensure the successful accomplishment of the goals set forth forthe operations process under consideration.a. efficiencyb. effectivenessc. securityd. inputANS: B3. The purpose of ____ control goals is to ensure that all resources used throughout the business process are being employed in the most productive manner.a. efficiencyb. effectivenessc. securityd. inputANS: A4. The purpose of ____ control goals is to ensure that entity resources are protected from loss, destruction, disclosure, copying, sale, or other misuse..a. efficiencyb. effectivenessc. securityd. inputANS: C5. Immediately endorsing incoming checks satisfies the control goal of a. ensure effectiveness of operationsb. ensure update completeness and accuracyc. ensure input accuracyd. ensure security of resourcesANS: D6. The purpose of input control goals is to ensure a. input validity, completeness, and accuracyb. update completeness and accuracyc. input accuracyd. none of the aboveANS: A7. In a control matrix the coding P-1 meansa. process 1b. process 1 is presentc. process 1 is missingd. none of the aboveANS: D8. In a the columns representing control goals in a