Explain the fundamental control concept


1.Which one of the following would be the most persuasive type of evidence? (a). check register, (b). bank statement, (c). observation of assets, (d). inquiry with the in-house attorney.

2.Which of the following strengthens segregation of duties in the electronic environment? (a). Users are not allowed to make changes to the software; (b). Programmers test new developments on live data; (c). Database administrators are allowed to maintain the data; (d). Internal auditors are not allowed to test changes to software.

3. Which of the following is not a fundamental control concept in evaluating the organization of data processing? (a). The authorization for all transactions should originate outside the information technology department; (b). There should be a fundamental segregation of duties between users and the information technology departments;(c). Management should periodically evaluate the information system function for operational efficiency, integrity, security, and consistency with organizational objectives; (d). The external auditors should periodically audit applications and operations.

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Accounting Basics: Explain the fundamental control concept
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