18 Questions
What do financial auditors primarily worry about within the accounts receivable process?
Risks within the accounts receivable process itself
What should IT auditors think about when considering risks to the system?
Risks to the business purpose of the system
What is one example of an internal control that could mitigate risks related to unauthorized code changes?
Requiring evidence of testing and approval before updating production code
Why is it important to have access controls in place for a system?
To prevent unauthorized data changes
What is a key concern if access to a system is provided to individuals who do not need it?
Data integrity issues
Which type of control focuses on verifying that changes to system code are approved and tested properly?
Technical controls
What is the purpose of administrative implementations of controls?
To include items such as policies and processes
Which type of control is a user ID and password for access to a system?
Preventive control
What is the main characteristic of technical implementations of controls?
Tools and software that logically enforce controls
Which control type records a bad event after it has happened?
Detective control
In terms of cost-effectiveness, why might preventive controls not always be the best solution?
Due to cost considerations compared to other types of controls
Which type of control includes measures like security personnel and locked doors?
Physical control
What is the purpose of reactive controls in a system?
To provide an organized way to detect and correct bad events after they occur
Which type of control is a central antivirus system that detects whether each user’s PC has the latest signature files installed?
Technical control
What is the main function of an accounts receivable system in a company?
To track who owes money to the company
Why might disallowing network access to non-compliant machines be impractical from a business perspective?
It can disrupt essential business functions
In the context provided, what kind of control is used to nag 'deadbeats' who don’t pay the company?
Corrective control
What distinguishes reactive controls from preventive controls?
Preventive controls prevent bad events from occurring, while reactive controls correct bad events after they happen.
Test your knowledge on reactive controls, also known as corrective controls, which play a crucial role in detecting and correcting bad events after they have occurred. Learn about the importance of logging activities to review for inappropriate actions post-incident.
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