Tag: Ethics

In each of the following three examples, select whether the computer controls that operate at Alex plc are either “General” or “Application”.

Example 1 – Storing extra copies of programs and data files off-site

Example 2 – Programmes to check data fields on input transactions

Example 3 – Manual checks to ensure that the input data was authorised

Select ONE answer:

1. Example 1. General and Example 2. General and Example 3. General
2. Example 1. General and Example 2. General and Example 3. Application
3. Example 1. General and Example 2. Application and Example 3. Application
4. Example 1. Application and Example 2. Application and Example 3. Application

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct => Example 1 is a general control as it supports the effective functioning of application controls. Examples 2 and 3 are correct as they relate specifically to the processing of individual applications.
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

The following are examples of internal controls which operate at Alex plc.

For the example below, select the type of control activity which it illustrates.

• The receivables ledger clerk (Arthur) posts invoices to the receivables ledger. The cash book clerk (Jonny) posts the cash receipts to the receivables ledger.

Select ONE answer:

1. Information processing
2. Segregation of duties
3. Performance review
4. Physical control

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Not correct
2. Correct – Having separate clerks recording sales invoices and posting cash receipts in the sales ledger reduces the risk of fraud and error (is therefore a segregation of duties control).
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

The following are examples of internal controls which operate at Alex plc.

For the example below, select the type of control activity which it illustrates.

The financial controller (Lucy) reconciles the receivables ledger to the receivables ledger control account monthly.

Select ONE answer:

1. Information processing
2. Segregation of duties
3. Performance review
4. Physical control

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct – Reconciliations are information processing activities undertaken to verify the completeness and accuracy of information.
2. Not correct
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

The following are examples of internal controls which operate at Alex plc.

For the example below, select the type of control activity which it illustrates.

-There are two keys to the locked finance department safe: one held by the finance director (Stuart) and the other by the managing director (Alex).

Select ONE answer:

1. Authorisation
2. Information processing
3. Segregation of duties
4. Physical control

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct => It is a physical control

This work is licensed under a Creative Commons Attribution 4.0 International License.

The following are examples of internal controls which operate at Alex plc.

For the example below, select the type of control activity which it illustrates.

– The financial controller, Lucy, counts petty cash every month.

Select ONE answer:

1. Authorisation
2. Information processing
3. Physical control
4. Segregation of duties

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct => It is a physical control
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.