IT Controls That the Auditor Might Expect to Find in the Investment

question 35

Multiple Choice

IT controls that the auditor might expect to find in the investment process are

• A)IT system restricts access to individuals authorized to input investment purchases and investment sales
• B)IT system restricts access to individuals authorized to input cash transfers between bank and accounts
• C)IT system restricts access to individuals authorized to adjust cash balances
• D)The accounting system matches information on the broker's advice with the purchase history of the investment security before processing a sale of investment securities
• E)Bank transfer report is generated daily (weekly or monthly)and is reviewed by an individual one level above the level making the transfer
• F)both A and B
• G)both A and D
• H)both C and E

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Definitions:

Qualified Indorsement

An endorsement on a negotiable instrument that limits the liability of the endorser or specifies particular conditions.

Probability Value

A measure that indicates the likelihood of the occurrence of a given event or the significance of results obtained in a statistical hypothesis testing.

Statistical Tests

Mathematical procedures used in statistics to assess hypotheses or make inferences based on sample data.

Chance Fluctuation

Random variations or changes that occur without a specific cause or pattern, often used in statistical analysis.