Internal Controls Like Edit Checks and Preformatted Data Entry Screens

question 55

Multiple Choice

Internal controls like edit checks and preformatted data entry screens would help reduce: (i) systems risk, (ii) human error risk.

• A) i only.
• B) ii only.
• C) Both i and ii.
• D) Neither i nor ii.

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Definitions:

Insurance Policy

A contract between an insurer and a policyholder that specifies the terms under which the insurer agrees to compensate the policyholder for specified losses.

Adjusting Entry

An accounting entry made in the books at the end of an accounting period to allocate income and expenditure to the correct period.

General Ledger

A complete record of all financial transactions over the life of a company, used to compile financial statements.