Which of the Following Would Most Likely Be a Weakness

question 13

Multiple Choice

Which of the following would most likely be a weakness in the internal control of a client that utilizes portable computing devices rather than a larger computer system?

• A)Employee collusion possibilities are increased because portable computing devices from one vendor can process the programs of a system from different vendors.
• B)Computer operators may be able to remove hardware and software components and modify them at an off-site location.
• C)Programming errors result in all similar transactions being processed incorrectly because those transactions are processed under the same conditions.
• D)Certain transactions may be automatically initiated by the computerized processing system and management's authorization of these transactions may be implicit in its acceptance of the system design.

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Definitions:

Reported Net Income

The net income that a company reports in its financial statements, which represents the company's total earnings after expenses, taxes, and costs are subtracted from total revenue.

Total Proceeds

The entire sum of money received from a transaction or series of transactions, often before any deductions or expenses are taken into account.

Sustaining Stock Price

Efforts or strategies employed by a corporation to maintain or support the current market price of its shares.

Excess Cash

The amount of cash available exceeding what is necessary for day-to-day operations, often allocated for investment or returned to shareholders.