Millicent Vonareva Was Reviewing Her IT General Controls Program for Her

question 14

Multiple Choice

Millicent Vonareva was reviewing her IT General Controls program for her client visit. She noticed an item that she thought did not belong in her "Controls to prevent unauthorized access to data" section of the program. Which item did not belong there?

• A) Data files and critical applications are regularly backed up in offsite locations.
• B) Program changes are subject to formal change management procedures.
• C) Policies exist to ensure departing employees are denied access to software programs and databases.
• D) All the above items belonged in the "controls to prevent unauthorized access to data" section of the program.

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Definitions:

Cash Dividend

A cash dividend is a payment made by a company to its shareholders from its profits in the form of cash.

Current Liabilities

Financial obligations a company is due to pay within a year, including accounts payable, short-term loans, and taxes owed.

Stockholders' Equity

Represents the ownership interest of shareholders in the corporation, calculated as total assets minus total liabilities.

Noncumulative Preferred Stock

A type of preferred stock where dividend payments are not required to be paid in periods when they are not declared.