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Flashcards in Computer Systems and Information Technology Deck (26):

List and describe the three broad classes of computer controls?

General Controls - overall operation

Application Controls - Specific programs input, processing and output

User controls - human controls applied by individuals outside of the computer system


Name the categories of general computer controls?

controls over data center and network operations, system software acquisition, change and maintenance

access security

application system acquisition, development and maintenance


How is test data used to check a computer program?

a batch of transactions is entered into a software program with one valid transaction. if programmed properly it should handle the invalid transactions appropriately


What are some of the testing methods in auditing through the computer process?

test data approach

parallel simulation

embedded audit module approach

integrated test facility


What is a controlled program?

an original program copy that is kept unchanged to perform a parallel simulation.


What is an integrated test facility?

allows dummy data to be processed along with live data. if dummy data is processed correctly then it assumed live data is also processed correctly


What is a parallel simulation?

client data is processed in some type of controlled process, then same data processed using client's software. results should be the same


What is the definition of online real-time processing?

direct access into the processing unit of main computer, changes made at a terminal are immediately processed and the effect of the changes are immediate


What are several controls to ensure computers, programs and data are adequately secured?

locked files

locked computers


ID numbers

access logs

restricted access to all computer hardware

exception reporting for failed attempts to access the system or data files


What separation of duties is particularly important in the IT department?

programmers be separate from system design and computer operators

access to data and system files should also be separate from program and system development

specific individuals charged with IT management who are responsible for oversight of IT functions


What are several application controls to keep bad or faulty data out of the computer system?

self-checking numbers

control totals

batch totals

item counts

hash totals

limit tests

validity checks


What is a self-checking number?

a number where the final digit or a digit in a consistent position within the number derived by some mathematical formula based on other digits in the number


What is being measured by item counts, hash totals, and batch totals?

item count is number of transactions

hash total is a number derived from a group of computer transactions that is not normally determined

batch total is a total normally derived but also used for control purposes


What is a limit test?

an application control where upper and lower limits are set for certain transactions


What is a validity check?

compares data being processed to an independent database


What is a control group?

independent team established for review of computer system controls


How should companies reduce the chance of misuse of EDI transmissions?

authentication controls to ensure proper submission and delivery of information

encryption so that messages are unreadable to unauthorized parties


What prevents mixing of data between several programs running simultaneously?

program boundary protection


What is a generalized audit software package?

a set of programs designed specifically for auditing purposes, which can be easily operated on an auditor's desktop or laptop computers


What is a control total?

a total that has been determined in advance for data being entered into a computer program


What is EDI?

transmission of document image and data within that image directly from a computer at one entity to a computer at another entity


What are the two benefits of an EDI system?

increase the speed of data transmission between two or more entities that are doing business with one another

decrease the opportunity for clerical errors


What is the main problem an auditor faces when auditing a client that uses an online real-time system?

it gives users access into the computerized info systems from a remote terminal location


What controls should an online real-time computer system have?

frequently changing passwords

approved terminals

limit of log-on attempts


What is a value-added network?

an organization that gathers and transmits EDI communications between specific parties


What is a code comparison program?

an application software program that compares an existing program with a controlled program to discover any differences in program code