18 Questions
What is the primary objective of output controls in an organization?
To ensure information is not lost, misdirected, or corrupted and system processes function properly
What is the purpose of a Transaction Log in an output control system?
To provide a permanent record of valid transactions, containing only successful transactions
What is the Accounts Receivable Change Report, and what information does it provide?
A summary report that shows overall change to accounts receivable from sales orders and cash receipts
How do output controls contribute to the overall security of an organization's assets?
By ensuring that information is not lost, misdirected, or corrupted, and system processes function properly
What is the relationship between output controls and the testing of physical controls?
Output controls ensure that information is accurate and reliable, while testing physical controls helps prevent unauthorized access to assets
How do output controls support the segregation of duties and independent verification in an organization?
By ensuring that information is accurate and reliable, output controls facilitate the segregation of duties and independent verification
What is the key goal of output controls?
Ensure transactions are valid, accurate and complete.
What is the purpose of Credit Authorization Procedures (Credit check) in terms of transaction processing?
To establish the creditworthiness of the customer.
What is the main role of data validation controls?
To detect transcription errors in transaction data before processing.
What does batch control aim to achieve in transaction data management?
To reconcile output with the input entered into the system.
Why is testing the logic of a validation program considered a significant undertaking?
To provide evidence about the accuracy assertion.
Explain the significance of validation procedures being performed close to the source of transaction data.
To detect errors early and prevent processing inaccurate data.
Why is it important for a system to produce a transaction listing of all successful transactions?
To facilitate reconciliation input.
What is the purpose of maintaining a log of automatic transactions?
To maintain an audit trail of activities.
Why is it necessary for each transaction processed by the system to have a unique identifier?
To uniquely identify each transaction.
What is the significance of sending a listing of error records to the appropriate user?
To support error correction and resubmission.
What is the purpose of reviewing summary reports for accuracy, completeness, timeliness, and relevance?
To ensure the reports are reliable and relevant for decision-making.
What is the key goal of output controls in a system?
To ensure information is not lost, misdirected, or corrupted, and system processes function properly.
Learn about output controls that aim to ensure information accuracy and system functionality. Topics include transaction listings and logs of automatic transactions to maintain an audit trail.
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