Application Controls

question 51

Multiple Choice

Application controls:

• A)can be classified as input controls,processing controls,and output controls.
• B)govern the design,security,and use of computer programs and the security of data files in general throughout the organization.
• C)apply to all computerized applications and consist of a combination of hardware,software,and manual procedures that create an overall control environment.
• D)include software controls,computer operations controls,and implementation controls.
• E)monitor the use of system software and prevent unauthorized access to software and programs.

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Definitions:

Opportunity Cost

The missed opportunity for profit from different options when a specific choice is made.

Resources

Assets, materials, and inputs used to produce goods and services, including land, labor, capital, and entrepreneurship.

Mental Accounting

A concept in behavioral economics where individuals categorize and treat money differently depending on its origin, intended use, or other subjective criteria, affecting spending and investment decisions.

Loss Aversion

A cognitive bias reflecting the tendency for people to prefer avoiding losses to acquiring equivalent gains, suggesting that losses are perceived as more severe than gains.