Which of the Following May Present Itself as the Biggest

question 69

Multiple Choice

Which of the following may present itself as the biggest risk to centralizing information responsibilities that were traditionally separate?

• A) IT personnel with access to software and master files may misappropriate assets
• B) IT personnel with access to software and master files may lack the accounting skills necessary to provide useful information to management
• C) IT personnel with access to software and master files may not understand the linkages between general and application controls
• D) IT personnel with access to software and master files may not be able to convert the company's operational policies to an IT environment

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Definitions:

Stockholder's Equity

Ownership interest represented by what remains of a company's assets once all liabilities have been deducted.

Assets

Resources owned by a business that have economic value and can be used to meet debts or generate income.

Fiscal Year

A twelve-month period used for calculating annual financial statements in businesses and other organizations, which may or may not align with the calendar year.

Natural Business Year

A fiscal year that ends when business activities have reached the lowest point in an annual operating cycle.