Question 1

Which of the following controls can minimize the threat of loss or destruction of data?
A)Training and experience in applying IFRS and XBRL.
B)Responsibility accounting.
C)Backup and disaster recovery procedures.
D)Restriction of access to general ledger.

Accepted Answer

Backup and disaster recovery procedures are specifically designed to protect against the loss or destruction of data. Training and experience in IFRS and XBRL, responsibility accounting, and restriction of access to the general ledger may help prevent errors or intentional manipulation of data, but they do not directly address the threat of data loss or destruction.

Question 2

What control procedure(s)should be used to reduce the risk of the destruction of financial statement master data?
A)Multifactor authentication.
B)Backup and disaster recovery.
C)Encryption.
D)All of the above.

Accepted Answer

Backup and disaster recovery is the most effective control procedure for reducing the risk of destruction of financial statement master data. Multifactor authentication and encryption primarily help with preventing unauthorized access to the master data, but do not provide a guarantee against destruction or loss. Therefore, option B should be the preferred choice.

Question 3

Which of the following controls can minimize the threat of poorly designed reports and graphs?
A)Training and experience in applying IFRS and XBRL.
B)Responsibility accounting.
C)Backup and disaster recovery procedures.
D)Restriction of access to general ledger.

Accepted Answer

Responsibility accounting involves assigning accountability for specific tasks or processes to individuals or departments within an organization. By implementing this type of system, it ensures that those responsible for designing reports and graphs have the necessary skills and knowledge to produce effective and accurate visual representations of data. This can help minimize the risk of poorly designed reports and graphs. The other options listed (A, C, and D) do not directly address this specific threat.

Question 4

Who generally is responsible for providing the accounting department with information about financing and investing activities to create the appropriate general ledger journal entries?
A)The budget department.
B)The CFO.
C)The treasurer.
D)The CEO.

Accepted Answer

The treasurer is typically responsible for managing the company's financial activities, including financing and investing activities. As such, they are in the best position to provide the accounting department with the necessary information to create the appropriate general ledger journal entries. The CFO and CEO may also be involved in these activities, but they are not typically the primary source of information for the accounting department. The budget department generally focuses on creating and managing the company's budget, rather than providing information specific to financing and investing activities.

Question 5

Which of the following controls can minimize the threat of inaccurate financial statements?
A)Training and experience in applying IFRS and XBRL.
B)Responsibility accounting.
C)Backup and disaster recovery procedures.
D)Restriction of access to general ledger.

Accepted Answer

Training and experience in applying IFRS (International Financial Reporting Standards) and XBRL (eXtensible Business Reporting Language) can minimize the threat of inaccurate financial statements. These standards help ensure that financial statements are accurate, consistent, and transparent. XBRL also improves the accuracy and reliability of financial reporting by enabling the tagging of financial data which ensures that the same data is always represented the same way. While the other options can be effective in minimizing other types of risks, they do not directly address the accuracy of financial statements.

Question 6

A listing of journal vouchers by numerical sequence,account number,or date is an example of
A)a general ledger control report.
B)a budget report.
C)a batch to be processed.
D)responsibility accounting.

Accepted Answer

A listing of journal vouchers by numerical sequence, account number, or date is an example of a general ledger control report, which is used to monitor and verify accounting transactions in the general ledger. A budget report provides information on planned vs. actual expenses and revenues. A batch to be processed refers to a group of transactions that are processed together. Responsibility accounting is a management accounting system that assigns responsibility for the performance of specific tasks or functions to different individuals or departments within an organization.

Question 7

What control procedure(s)should be used to reduce the risk of unauthorized disclosure of the financial statements?
A)Multifactor authentication.
B)Physical security.
C)Encryption.
D)All of the above.

Accepted Answer

All three control procedures should be used to reduce the risk of unauthorized disclosure of the financial statements.

Multifactor authentication ensures that only authorized users are able to access the financial statements. This can be achieved through the use of passwords and security tokens, or biometric authentication.

Physical security measures such as security cameras, access controls, and secure storage cabinets can prevent unauthorized access to physical copies of the financial statements.

Encryption of electronic financial statements can protect them from unauthorized disclosure even if they are accessed by unauthorized users. Encrypted data cannot be read without a decryption key, which is only available to authorized users.

Question 8

Explain the purpose of a journal voucher file.

Accepted Answer

The answer of Explain the purpose of a journal voucher...

Question 9

Identify one way "rainbow tables" are often used.
A)To discover plaintext passwords associated with a hash.
B)To integrate different tables into one, master table.
C)To perform a zero-balance check.
D)To ensure referential integrity of all the associated tables.

Accepted Answer

Rainbow tables are often used to discover plaintext passwords associated with a hash. They work by pre-computing hash chains based on common algorithms and storing them in large tables, allowing for quick reverse-lookup of a password for a given hash. This can be used by attackers to quickly crack passwords and gain unauthorized access.

Question 10

Which item below is not considered a major input to the general ledger and reporting system?
A)summary entries from the major subsystems
B)reports from managers
C)adjusting entries
D)financing and investing activities

Accepted Answer

Reports from managers are not considered a major input to the general ledger and reporting system. Major inputs typically include summary entries from subsystems, adjusting entries, and records of financing and investing activities, not managerial reports.

Question 11

When updating the general ledger,sales,purchases,and production are examples of ________ entries,and issuance or retirement of debt and the purchase or sale of investment securities are examples of ________ entries.
A)adjusting; controller originated
B)accounting subsystem; treasurer originated
C)adjusting; special journal
D)controller generated; special journal

Accepted Answer

Sales, purchases, and production are all part of the accounting subsystem and would be considered accounting subsystem entries. Issuance or retirement of debt and the purchase or sale of investment securities are typically handled by the treasurer's office and would be considered treasurer originated entries. Neither adjusting nor special journal entries are accurate descriptions for these types of entries. Controller generated entries may include more general ledger entries, but they would not necessarily be related to specific transactions like issuance of debt or investment securities.

Question 12

Which of the following user groups generally receive information produced by the general ledger and reporting system?
A)internal users
B)external users
C)inquiry processing by internal or external users
D)all of the above

Accepted Answer

The general ledger and reporting system produces financial information that is used by both internal and external users. Internal users, such as managers and executives, may use the information for decision making, while external users, such as investors and creditors, may use the information to evaluate the company's financial performance. Additionally, internal and external users may also use inquiry processing to obtain specific information from the system. Therefore, all of the above user groups generally receive information produced by the general ledger and reporting system.

Question 13

Which of the following controls can minimize the threat of inaccurate or invalid general ledger data?
A)Training and experience in applying IFRS and XBRL.
B)Responsibility accounting.
C)Backup and disaster recovery procedures.
D)Restriction of access to general ledger.

Accepted Answer

Restricting access to the general ledger can help to ensure that only authorized personnel are making entries and changes, minimizing the risk of errors or fraudulent activity. Training and experience in IFRS and XBRL, responsibility accounting, and backup and disaster recovery procedures may also be important controls, but they would not directly address the specific threat of inaccurate or invalid general ledger data.

Question 14

Which of the following are used to document entries made to update the general ledger?
A)general journal
B)subsidiary journal
C)subsidiary ledgers
D)journal vouchers

Accepted Answer

The answer of Which of the following are used to...

Question 15

Identify the most correct statement with regard to how the various accounting subsystems update the general ledger.
A)Individual journal entries for each accounting subsystem transaction update the general ledger every 24 hours.
B)Summary journal entries that represent the results of all transactions for a certain time period are used to update the general ledger.
C)The controller or treasurer must approve accounting subsystem journal entries before any updating may occur.
D)Nonroutine transactions are entered into the system by the treasurer's office.

Accepted Answer

The most correct statement is that summary journal entries that represent the results of all transactions for a certain time period are used to update the general ledger. This is usually done at the end of the accounting period, and it ensures that all transactions are captured accurately and efficiently in the general ledger. Option A is incorrect because the frequency of updating the general ledger varies among companies and industries, and daily updates are not always necessary. Option C is also incorrect because approval of entries is typically done at the department level and not just by the controller or treasurer. Option D is not related to how the various accounting subsystems update the general ledger.

Question 16

Describe three threats in the general ledger and reporting system and identify corresponding controls for each threat.

Accepted Answer

The answer of Describe three threats in the general ledger...

Question 17

The general ledger system of an organization should be designed to serve the information requirements of both internal and external users.This means that the system should support
A)producing expansive regular periodic reports to cover all information needs.
B)the real-time inquiry needs of all users.
C)producing regular periodic reports and respond to real-time inquiry needs.
D)access by investors and creditors of the organization to general ledger balances.

Accepted Answer

The general ledger system should be able to produce regular periodic reports as well as respond to real-time inquiry needs of users. This means that the system should be able to serve both internal and external users' information requirements effectively. Option A is not the best choice as it suggests producing expansive periodic reports that may not necessarily cover all information needs. Option B is also not the best choice as it only caters to real-time inquiry needs without considering periodic reporting. Option D is not the best choice as it only considers access by investors and creditors to general ledger balances, thus neglecting the information requirements of internal users.

Question 18

What system privileges should an employee involved in the general ledger and reporting system be given?
A)General privileges to create, delete, update, or modify data.
B)No privileges permitting the creation, deletion, updating, or modification of data.
C)Only the specific privileges necessary to perform an employee's assigned duties.
D)Read-only privileges.

Accepted Answer

It is important to follow the principle of least privilege by only granting the specific privileges necessary for an employee to perform their assigned duties. This ensures that there is no unnecessary access to sensitive data which reduces the risk of fraud or data breaches. Giving general privileges or read-only privileges may limit the employee's ability to do their job effectively or provide too much access to sensitive data.

Question 19

If you believe not all adjusting entries were posted in the general ledger,you should prepare a general ledger control report listing journal vouchers in
A)numerical sequence.
B)chronological order.
C)general ledger account number order.
D)any order, since you have to review them all anyway.

Accepted Answer

Adjusting entries should be listed in numerical sequence in a general ledger control report. This helps in tracking and verifying each entry systematically, ensuring that all adjustments are accounted for and can be easily referenced.

Question 20

The general ledger and reporting system consists of the ________ involved in ________ the general ledger and ________ reports.
A)business transactions; updating; processing
B)data processing; business transactions for; printing
C)information processing; updating; creating
D)business transactions; data processing; preparing

Accepted Answer

The general ledger and reporting system involves information processing (not just data processing) to update the general ledger and create reports, making option C the most accurate choice. Option A is incorrect because it only includes business transactions and updating, but not creating reports. Option B is incorrect because it lists data processing instead of information processing, and does not include report generation. Option D is incorrect because it suggests that data processing is the only activity involved in preparing reports, but report preparation also requires information processing.

Quiz 16: General Ledger and Reporting System

Which of the following controls can minimize the threat of loss or destruction of data?

What control procedure(s) should be used to reduce the risk of the destruction of financial statement master data?

Which of the following controls can minimize the threat of poorly designed reports and graphs?

Who generally is responsible for providing the accounting department with information about financing and investing activities to create the appropriate general ledger journal entries?

Which of the following controls can minimize the threat of inaccurate financial statements?

A listing of journal vouchers by numerical sequence,account number,or date is an example of

What control procedure(s) should be used to reduce the risk of unauthorized disclosure of the financial statements?

Explain the purpose of a journal voucher file.

Identify one way "rainbow tables" are often used.

Which item below is not considered a major input to the general ledger and reporting system?

When updating the general ledger,sales,purchases,and production are examples of entries,and issuance or retirement of debt and the purchase or sale of investment securities are examples of entries.

Which of the following user groups generally receive information produced by the general ledger and reporting system?

Which of the following controls can minimize the threat of inaccurate or invalid general ledger data?

Which of the following are used to document entries made to update the general ledger?

Identify the most correct statement with regard to how the various accounting subsystems update the general ledger.

Describe three threats in the general ledger and reporting system and identify corresponding controls for each threat.

The general ledger system of an organization should be designed to serve the information requirements of both internal and external users.This means that the system should support

What system privileges should an employee involved in the general ledger and reporting system be given?

If you believe not all adjusting entries were posted in the general ledger,you should prepare a general ledger control report listing journal vouchers in

The general ledger and reporting system consists of the involved in the general ledger and reports.