Internal Control Classification
Several Common Internal Controls for Information Technology

question 59

Essay

Internal control classification
Several common internal controls for information technology are listed below. Indicate whether each is primarily preventive, detective or corrective in nature; also indicate whether each is a general control or an application control. $$\begin{array} { | l | l | l | } \hline & \begin{array} { c } \text { Preventive, } \\\text { detective } \\\text { or corrective }\end{array} & \begin{array} { c } \text { General or } \\\text { application }\end{array} \\\hline \begin{array} { l } \text { Only the credit manager can access the "increase credit } \\\text { limit" function in a company's accounting software. }\end{array} & \\\hline \begin{array} { l } \text { Computers are physically locked to desks with a } \\\text { padlock and cable. }\end{array} & \\\hline \begin{array} { l } \text { Company policy prohibits employees from downloading } \\\text { software or attaching unauthorized peripherals (such as } \\\text { web cams) to their computers. }\end{array} & \\\hline \begin{array} { l } \text { An alarm goes off if a non-accounting employee } \\\text { attempts to access accounting software. }\end{array} & \\\hline \text { All computer hardware is insured against theft or loss. } & \\\hline\end{array}$$

---

Definitions:

Money Market

A segment of the financial market where short-term funds are borrowed and lent, typically involving instruments with high liquidity and short maturities.

Treasury Bill

A short-term government security issued at a discount from the face value and paying no interest, maturing usually in one year or less.

Fraud Triangle

A model that describes the three elements present when an individual commits fraud: opportunity, pressure, and rationalization.

International Companies

Businesses that operate across multiple countries beyond their original or home country, dealing with international production or trade.