Internal Control Is Ineffective When Computer Programmers

question 49

Multiple Choice

Internal control is ineffective when computer programmers:

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

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Definitions:

Raw Materials Cost

The expense of materials that are used in the manufacturing process to create goods, not yet processed or altered.

Direct Labor Wage

The remuneration paid to employees who are directly involved in the production of goods or the provision of services.

Budgeted Cash Balance

An estimated amount of cash a company expects to have on hand at the end of a specified period, based on anticipated inflows and outflows.

Cash Receipts

Cash receipts are the collection of money, including currency, checks, and electronic transfers, received by a business.