AIS 4

Question 1

Transaction authorization should be separate from transaction processing.​

Asset custody should be separate from asset record-keeping.​

The organization should be so structured that the perpetration of a fraud requires collusion between two or more individuals.​

Answer 1

segregation of Functions​

Question 2

credit authorization separate from SO processing​

inventory control separate from warehouse​

accounts receivable sub-ledger separate from general ledger control account​

Answer 2

Sales Order Processing
Segregationof function

Question 3

cash receipts separate from accounting records​

accounts receivable sub-ledger separate from general ledger​

Answer 3

Cash Receipts Processing
Segregationof function​

Question 4

Often used when unable to enact appropriate segregation of duties. ​

Supervision of employees serves as a deterrent to dishonest acts and is particularly important in the mailroom​

Answer 4

Supervision

Question 4

serves as a deterrent to dishonest acts and is particularly important in the mailroom

Answer 4

Supervision of employees

Question 5

entry of customer order, printout of stock release, packing slip and bill of lading; update of credit file, inventory file, and open sales orders file

Answer 5

Real-time

Question 6

printout of invoice, update of closed sales order (journal), accounts receivable and general ledger control account​

Answer 6

Batch

Question 7

are used extensively in retail establishments. ​

Answer 7

Point of sale systems

Question 8

tend to be inadequate and should be compensated for with increased supervision, detailed management reports, and frequent independent verification

Answer 8

Segregation of Duties

Question 10

______ to the data stored on the computer tends to be weak; methods such as encryption and disk locking devices should be used​

Answer 10

​Access Control

Question 10

computer disk failures cause data losses; external backup methods need to be implemented to allow data recovery​

Answer 10

Accounting Records