Question 1

The control goal of ensure ___________________________________ provides assurance that objects or events which were entered into the computer are in reflected correctly in their respective master data.

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Question 2

A(n) ___________________________________ is designed to discover problems that have occurred.

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Question 3

Listed below are 13 specific fraud examples taken from some well-known fraud cases: MiniScribe, ZZZZ Best Carpet Cleaning, Lesley Fay, and Equity Funding.Required:
For each fraud example, enter a letter corresponding to which information control goal was initially violated--Validity, Completeness, or Accuracy.Some examples might involve more than one violation.NOTE: When we say initially, we mean what control goal failure led to this example, not what is the present condition.For example, master data might contain information that is inaccurate, but it might have been an inaccurate input that initially caused the data to be inaccurate.Fraud Examples:

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Question 4

The control goal that is concerned with the correctness of the transaction data that are entered into a system is called ensure _________________________.

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Question 5

Three terms used in the chapter to refer to when a control plan is exercised are ____________________, ____________________, and corrective control plans.

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Question 6

______________________________ are applied to all IT service activities.

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Question 7

Figure TB-7.1 depicts the objective setting process shown in Chapter 7 but with all labels removed.Required:
Complete Figure TB-7.1 by inserting the following labels where they belong in the model:
Box Title
Box Description
$\bullet$
Related objectives
$\bullet$
e.g., expand production of our top-five selling retail products to meet increased demand
  
e.g., to be in the top quartile of product sales for retailers of our products
$\bullet$
Strategy
$\bullet$
e.g., to be the leading producer of household products in the regions in which we operate
$\bullet$
Mission, vision, purpose
$\bullet$increase production of x by 15%
$\bullet$hire 180 qualified new staff
$\bullet$maintain product quality
$\bullet$
Strategic objectives
$\bullet$

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The answer of Figure TB-7.1 depicts the objective setting process...

Question 8

A control plan requires that a manager sign his/her approval of timecards for employees in that department.This control plan is an example of a ________________________________________.

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Question 9

___________________________________ are automated business process controls contained within IT application systems.

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The answer of ___________________________________ are automated business process controls contained...

Question 10

A(n) ___________________________________ is designed to rectify problems that have occurred.

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The answer of A(n) ___________________________________ is designed to rectify problems...

Question 11

Information-processing policies and procedures that assist in accomplishing control goals are known as ______________________________.

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Question 12

Control plans that relate to a multitude of goals and processes are called ________________________________________.

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Question 13

The control goal of ensure input ____________________ requires that all valid objects or events are captured and entered into the computer.

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Question 14

A ___________________________________ relates to a specific AIS process or to the technology used to implement the process

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Question 15

The control goal of ensure ___________________________________ provides assurance that all valid objects or events which were entered into the computer are in turn reflected in their respective master data.

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Question 16

A missing data field on a source document or computer screen is an example of an error that could undermine the achievement of the control goal of ensure ______________________________.

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Question 17

A batch of business events is accurately entered into a business event data, but the computer operator fails to use the data to update master data.This type of processing error would be classified as a(n) ____________________ error.

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The answer of A batch of business events is accurately...

Question 18

Below is an alphabetical list of sources with information and guidance on internal controls.The second list contains descriptions or information provided by these sources.Required:
On the blank line to the left of each numbered item, place the capital letter of the source that best matches that description.HINT: Some letters may be used more than once.Conversely, some letters may not apply at all.

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The answer of Below is an alphabetical list of sources...

Question 19

The CFO of Exeter Corporation is very uncomfortable with its current risk exposure related to the possibility of business disruptions.Specifically, Exeter is heavily involved with e-business and its internal information systems are tightly interlinked with its key customers' systems.The CFO has estimated that every hour of system downtime will cost the company about $5,000 in sales.The CFO and CIO have further estimated that if the system were to fail, the average downtime would be about 2 hours per incident.The have anticipated (assume with 100% annual probability) that Exeter will likely experience 10 downtime incidents in a given year due to internal computer system problems, and another 10 incidents per year due to external problems; specifically system failures with the Internet service provider (ISP).Currently, Exeter pays an annualized cost of $25,000 for redundant computer and communication systems, and another $25,000 for Internet service provider (ISP) support just to keep total expected number of incidents to 20 per year.Required:
a.Given the information provided thus far, how much ($) is the company's current expected gross risk?
b.A further preventative control would be to purchase and maintain more redundant computers and communication lines where possible, at an annualized cost of $30,000, which would reduce the expected number of downtimes per year to 5 per year due to internal computer system problems.What would the dollar amount of Exeter's current residual expected risk at this point?

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Question 20

Below is a list of control goals followed by a list of short scenarios describing system failures (i.e., control goals not met) and/or instances of successful control plans (i.e., plans that helped to achieve control goals).Required:
On the blank line to the left of each numbered scenario, place the capital letter of the control goal that best matches the situation described.HINT: Some letters may be used more than once.Conversely, some letters may not apply at all.Control Goals

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The answer of Below is a list of control goals...

Quiz 7: Controlling Information Systems: Introduction to Enterprise Risk Management and Internal Control