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- December 12, 2024
Question 41
What is the primary purpose of a control total in transaction processing?
A) To organize data in sequence
B) To verify that all records have been processed correctly
C) To provide historical data for audits
D) To manage system access control
Answer: B) To verify that all records have been processed correctly
Explanation: Control totals help ensure that all records have been processed and the sum of totals matches expected values, helping to identify discrepancies.
Question 42
What is the key responsibility of an external auditor?
A) To maintain payroll records
B) To determine the validity, accuracy, and completeness of financial data
C) To process journal entries
D) To manage accounts payable
Answer: B) To determine the validity, accuracy, and completeness of financial data
Explanation: External auditors ensure that an organization’s financial data is valid, accurate, and complete by reviewing transactions and accounting systems.
Question 43
What process involves updating master files using transaction files in accounting systems?
A) Database indexing
B) File sequencing
C) Master file updating
D) Transaction processing
Answer: D) Transaction processing
Explanation: Transaction processing involves using transaction files to update master files, reflecting the latest business activities.
Question 44
What type of backup technique is used to protect data stored in sequential master files?
A) Archive storage
B) Firewall replication
C) Grandfather-father-son backup
D) Database snapshot
Answer: C) Grandfather-father-son backup
Explanation: The GFS technique uses sequential master files and stores three versions: the grandfather (oldest), father (previous), and son (current).
Question 45
What is a block code commonly used for in accounting systems?
A) To prevent unauthorized access
B) To summarize financial transactions
C) To assign specific ranges of values for data attributes
D) To store customer tax records
Answer: C) To assign specific ranges of values for data attributes
Explanation: Block codes assign ranges of values to particular attributes, such as account classifications in a chart of accounts.
Question 46
What does a depreciation report contain?
A) Details of inventory movements
B) Payroll records
C) Fixed asset acquisitions and depreciation details
D) Sales orders
Answer: C) Fixed asset acquisitions and depreciation details
Explanation: Depreciation reports provide information about the acquisition and the accumulated depreciation of fixed assets over time.
Question 47
What role do access tests play in transaction processing systems?
A) To confirm that mathematical calculations are correct
B) To ensure only authorized users can enter the system
C) To verify that transactions are processed completely
D) To track sales performance
Answer: B) To ensure only authorized users can enter the system
Explanation: Access tests verify the validity and authenticity of users trying to access a system by checking IDs, passwords, or other credentials.
Question 48
What is the primary focus of physical internal controls in an organization?
A) To manage network traffic
B) To authorize and verify transactions
C) To safeguard physical assets and restrict access
D) To control access to digital systems
Answer: C) To safeguard physical assets and restrict access
Explanation: Physical internal controls focus on protecting tangible assets such as inventory, cash, and equipment, and limiting access to them.
Question 49
What type of audit approach does not require detailed knowledge of an application’s internal logic?
A) Redundancy audit
B) Black box audit approach
C) Validity audit
D) Sequential audit
Answer: B) Black box audit approach
Explanation: The black box audit approach allows auditors to evaluate a system without needing to understand its internal workings by focusing on inputs and outputs.
Question 50
What is the role of completeness tests in transaction processing systems?
A) To ensure that no transactions are repeated
B) To identify missing records in a batch of transactions
C) To store historical transaction data
D) To validate transaction approval
Answer: B) To identify missing records in a batch of transactions
Explanation: Completeness tests ensure that no records are missing in a batch of transactions, identifying gaps that could cause data inaccuracies.