A Company's Computer System Is Housed on a Separate Floor

question 22

Multiple Choice

A company's computer system is housed on a separate floor of the company's corporate headquarters.Employees must enter their thumbprints on an electronic lock before the elevator will take them to this floor.This control is primarily designed to prevent ________.

• A)errors in recording and updating the financial accounting information
• B)unauthorized access to the financial accounting records
• C)loss of the data in the financial accounting records
• D)incorrect acceptance of material items

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Definitions:

Ultra Vires

Acts or transactions conducted by a corporation that fall outside the scope of powers and purposes defined by its charter or laws; such acts may be invalid or unauthorized.

Clayton Act

The Clayton Act is a U.S. antitrust law, enacted in 1914, aimed at promoting competition and preventing monopolies by addressing specific practices not covered by the Sherman Act.

Interlocking Directorates

In antitrust law, a situation that occurs when individuals serve as directors for two corporations that are competitors.

Golden Parachute

A substantial financial package granted to a corporate executive upon termination, often after a takeover or merger.