In a Daily Computer Run to Update Cheque Account Balances

question 15

Multiple Choice

In a daily computer run to update cheque account balances and to print out basic details on any customer's account that was overdrawn, the overdrawn account of the computer programmer was never printed. Which of the following control procedures would have been most effective in detecting this irregularity?

• A) A manual test check of the information in the master file against the information on the printout.
• B) Use of the test data approach by the auditor in testing the client's program and verifying the subsidiary file.
• C) Periodic recompiling of programs from approved and documented source code, and comparison with programs currently in use.
• D) A program check for valid customer code.

---

Definitions:

Interest Rate

The cost of borrowing money or the return on invested resources, typically expressed as a percentage of the principal amount per time period.

Expected Rate

Typically refers to the predicted yield or return of an investment over a specific period.

Total Investment

The aggregate amount of money invested in an economy's capital assets over a specific period, including both private and public sector spending.

Interest Rate

The proportion of a total amount of money that is levied for borrowing it, usually specified as a yearly percentage.