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:

Adaptation

An inherited aspect of an individual that allows it to outcompete other members of the same population that lack the trait (or that have a different version of the trait). Adaptations are traits that have evolved through the mechanism of natural selection.

Homologous

Homologous refers to structures or genes that originate from a common ancestor, often performing similar or related functions in different organisms.

Convergent

The evolutionary process wherein organisms not closely related independently evolve similar traits as a result of having to adapt to similar environments or ecological niches.

Complex Eye

A type of eye structure found in some animals, consisting of numerous individual light-sensitive units, allowing for the perception of detailed images.