2. Prevention or detection of unauthorized Changes to programs.

3. Testing and documentation of programs changes.

4. Controls to prevent wrong programs or files being used.
5. Control to prevent unauthorized amendments to data files.
6. Control to ensure continuity of operations.
11. In what situation, application control becomes useless?
Ans: When general control is ineffective. So, review general control first.
12. Give some example of application control.
Ans: 1. Control over input: Completeness.
2. Control over input: Accuracy
3. Control over input: Authorization
4. Control over processing.
5. Control over mater files and standing data.
13. What controls should an auditor test about application controls?
Ans: 1. Manual controls manual input is complete, accurate.
2. Control over output System output using CA manual.
3. Programmed control procedure Using CAAT.

14. Identify application control & General control.

Ans: See page no: 95-97

15. What are the sauces of information about internal controls ?
Ans: 1. Manuals
2. Policies
3. Minutes of meetings
4. Prior year
5. Interview/Staffs
6. Observation important
16. What are the documents used to record understanding of entity?
Ans: 1. Narrative notes Good for short notes.
2. Questionnaires/Checklist Aid memories
Tick boxes
Never asked
3. Diagrams Best for recording relationships, reporting lines
Time consuming
17. Interactive # 1, 2, 3, Page: 99-100

Chapter-6
Revenue System
 1. What are the key risks associated with ordering?
Ans.
 Accepting customers with poor credit risk
 Not fulfilling orders.
2. What are the risks associated with ordering?
Ans. Orders may be taken from customers who are-
1. Not able to pay
2. Not pay long time
3. Orders may not recorded properly - not fulfilled- customers lost
3. Which internal controls will mitigate the following risks?
1. Orders may be taken from customers who are Not able to pay
2. Orders may be taken from customers who will Not pay long time
3. Orders may not recorded properly

Ans.

Sl Risks Controls
No.