Tag: Risk

Which ONE of the following are essential qualities of good information?

Select ONE answer:

1. Detailed
2. Accurate
3. Immediate
4. Profuse

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 == > This is based on the ACCURATE model of good information. Information does not need to be DETAILED – in fact, too much detail could detract from it by undermining its ease of use. Nor does it have to be IMMEDIATE – it only needs to be available when it is required (timely). And PROFUSE implies lots of information and this can obscure the important information which could undermine both relevance and ease of use.
3. Not correct
4. Not correct

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

Which of the following characteristics relates to strategic information as opposed to operational information?

Select ONE answer:

1. Often based on estimates
2. Often very detailed
3. Mostly very accurate
4. Usually routine

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 == > Strategic information is used by an organisation’s senior management to plan its long-term future. Therefore, much use is made of estimates about future sales, costs etc. Because strategic planning is undertaken at a level removed from day-to-operations the information is not likely to be very detailed.
2. Not correct
3. Not correct
4. Not correct

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

The information system employed by Ted The Bear plc automatically maintains a log of user activity.

This log contains details of identity, log-on and log-off times and details of processing carried out or access attempts made by Ted’s employees who are users of the system.

All transactions are tagged to identify the person responsible for that processing task.

The log-on details of the user determine processing privileges within the information system.

Which ONE of the following control objectives should this system effectively address?

Select ONE answer:

1. Correction
2. Accuracy
3. Deterrence
4. Completeness

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 == > Because any transaction can be traced to the perpetrator (user) trying to access the information system, the log will aid detection or deterrence. The log can do little about correction, completeness or accuracy of what the user enters into the information system.
4. Not correct

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

The information system employed by Ted The Bear plc automatically maintains a log of user activity.

This log contains details of identity, log-on and log-off times and details of processing carried out or access attempts made by Ted’s employees who are users of the system.

All transactions are tagged to identify the person responsible for that processing task.

The log-on details of the user determine processing privileges within the information system.

Which ONE of the following control objectives should this system effectively address?

Select ONE answer:

1. Correction
2. Detection
3. Accuracy
4. Completeness

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 == > Because any transaction can be traced to the perpetrator (user) trying to access the information system, the log will aid detection or deterrence. The log can do little about correction, completeness or accuracy of what the user enters into the information system.
3. Not correct
4. Not correct

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

The information system employed by Ted The Bear plc automatically maintains a log of user activity.

This log contains details of identity, log-on and log-off times and details of processing carried out or access attempts made by Ted’s employees who are users of the system.

All transactions are tagged to identify the person responsible for that processing task.

The log-on details of the user determine processing privileges within the information system.

Which ONE of the following control objectives should this system effectively address?

Select ONE answer:

1. Prevention
2. Correction
3. Accuracy
4. Completeness

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 == > The log should help to prevent unauthorised processing as processing privileges of the users are defined by the log-in details they provide. The log can do little about correction, completeness or accuracy of what the user enters into the information system.
2. Not correct
3. Not correct
4. Not correct

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