Professional Documents
Culture Documents
I. Review Questions
2. In a real-time system, much of the data are stored internally and documentation
is often not as extensive as in a batch system. Retrieval and audit of transaction
data, therefore, are often more difficult in a real-time system. Also, controls are
more likely to be programmed in real-time systems, and for this reason, are
more difficult to test.
4. In a batch system, files are stored off-line for the most part, and access control
assumes the form of safeguarding the programs, transaction files, and master
files by assigning responsibility for the files to a librarian and instituting a
formal checkout system. Only those persons authorized to process transactions
(computer operators) are permitted access to transaction and master files; and
programmers are permitted access to programs only for testing and “debugging”
purposes. In an on-line, real-time system, transactions and master files are
stored internally, often in a system of integrated data bases. Access control in
this type of data environment assumes the form of controlling access to data
bases and fixing of responsibility for the data base components. Assigning a
password to an individual who is responsible for the data base component
20-2 Solutions Manual - Principles of Auditing and Other Assurance
Services
accessible by that password, canceling passwords of former employees, and
frequent changing of existing employees’ passwords are examples of access
controls in a real-time system.
5. Recording forms and transaction logs assure consistency and completeness of
data inputs. The form or log should include codes describing such transaction
components as employee number, customer number, vendor number,
department number, stock number, purchased part number, or job number. The
form should also provide for quantities, prices, dates, and usually a short
narrative description of products, parts, materials, or services for purchase and
sales transactions.
6. A transaction file is the batch of entered data that has been converted into
machine-readable form. A transaction file may contain payroll information for a
specific period of time. It is similar to a journal in a manually prepared system.
A master file contains updated information through a particular time period. It
is similar to a ledger in a manual system.
1. d 5. c 9. c 13. c 17. c
2. c 6. c 10. c 14. d 18. a
3. a 7. c 11. d 15. a 19. b
4. a 8. b 12. c 16. a 20. a
An auditor should have the following concerns about the Box system:
• Does the system have any flaws or incompatibilities? (No one appears to
have tested the software or found out about others’ satisfaction with it.)
• The computer sits out in the open. (Anyone could have access to and
damage the hardware.)
• Anyone could come up with the password by guessing.
The Computer Environment 21-3
• The backup disks are not stored in a safe place.
• Was the conversion appropriately executed, with no data lost or added?