Internal Control Is Ineffective When Computer Programmers

question 30

Multiple Choice

Internal control is ineffective when computer programmers:

• A) design documentation for computerised systems.
• B) request physical security be provided for program files.
• C) have access to actual programs used to produce accounting information.
• D) participate in computer software acquisition decisions.

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Definitions:

FIFO Inventory Reporting

An approach to reporting inventory where the oldest stock is recorded as sold first; reiterates the First-In, First-Out method in financial statements.

Consistent Application

The principle that accounting rules and methods should be applied the same way in each accounting period to ensure comparability of financial statements.

All-Inclusive Concept

A pricing strategy or business model where a single price includes all related services and products.

Retained Earnings

The portion of net income that is retained by a company rather than distributed to its shareholders as dividends.