Which of the Following Is Not a General Control

question 38

Multiple Choice

Which of the following is not a general control?

• A) Computer performed validation tests of input accuracy.
• B) Equipment failure causes error messages on monitor.
• C) There is a separation of duties between programmer and operators.
• D) There are adequate program run instructions for operating the computer.

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Definitions:

Interest Tax Shield

The saving in taxes due to deductible interest expenses, which reduces taxable income and ultimately decreases the tax liability.

Financial Risk

Financial Risk refers to the possibility of losing money on financial investments or transactions due to market fluctuations, credit issues, or other factors.

Cost of Equity

The return a company requires to decide if an investment meets capital return requirements.

Interest Tax Shield

A reduction in taxable income resulting from deductible interest expenses, typically from debts.