An Auditor's Investigation of a Company's IT Control Procedures Has

question 3

Multiple Choice

An auditor's investigation of a company's IT control procedures has disclosed the following four circumstances.Indicate which circumstance constitutes a weakness in internal control.

• A) Only one copy of backup files is stored in an off-premises location.
• B) Computer operators are closely supervised by programmers.
• C) Programmers do not have the authorisation to operate equipment.
• D) Computer operators do not have access to the complete run manual.

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Definitions:

Sales Returns

Transactions involving the return of goods by customers, which reduce the total sales revenue.

Discount Period

The time frame within which a buyer can pay less than the full amount due on an invoice due to early payment incentives offered by the seller.

Credit to Cash

An accounting entry that indicates a decrease in an asset account, specifically reducing cash available.

Freight In

The cost associated with transporting goods into a warehouse or to the buyer, which is often included in the inventory cost of those goods.