Chapter 10 Processing Integrity and Availability Controls

10.1 Identify and explain controls designed to ensure processing integrity.

1) The best example of an effective payroll transaction file hash total would most likely be
A) sum of net pay.
B) total number of employees.
C) sum of hours worked.
D) total of employees' social security numbers.
Answer: D

2) Error logs and review are an example of

A) data entry controls.
B) data transmission controls.
C) output controls.
D) processing controls.
Answer: A

3) Following is the result of batch control totals on employee Social Security numbers in a
payroll processing transaction:

Values
Correct Entered
Values From During
Masterfile Processing
487358796 487358796
534916487 534916487
498374526 498374526
514873420 514873420
534196487 534916487
678487853 678487853
471230589 471230589
3719438158 3720158158

The difference in the control totals is 720,000. Which data entry control would best prevent
similar data entry errors in the future?
A) Modules 11
B) validity check
C) check digit
D) sequence check
Answer: C

4) Which of the following data entry controls would not be useful if you are recording the
checkout of library books by members?
A) sequence check
B) prompting
C) validity check
D) concurrent update control
Answer: A
5) A customer failed to include her account number on her check, and the accounts receivable
clerk credited her payment to a different customer with the same last name. Which control
could have been used to most effectively to prevent this error?
A) closed-loop verification
B) duplicate values check
C) validity check
D) reconciliation of a batch control total
Answer: A

6) If invoices are processed in groups of fifty, which fields from the document shown below
would not be used to create a hash control total?

A) Amount
B) Item Number
C) Quantity Ordered
D) Sales Order number
Answer: A

7) ________ is a data entry input control that involves summing the first four digits of a
customer number to calculate the value of the fifth digit, then comparing the calculated
number to the number entered during data entry.
A) Validity check
B) Duplicate data check
C) Closed-loop verification
D) Check digit verification
Answer: D

8) All of the following controls for online entry of a sales order would be useful except
A) check digit verification on the dollar amount of the order.
B) validity check on the inventory item numbers.
C) field check on the customer ID and dollar amount of the order.
D) concurrent update control.
Answer: A
9) The inventory tracking system shows that 12 iPods were on hand before a customer brings
three iPods to the register for purchase. The cashier accidentally enters the quantity sold as 30
instead of 3. Which data entry control would most effectively prevent this error?
A) limit check
B) sign check
C) field check
D) validity check
Answer: B

10) A payroll clerk accidently entered an employee's hours worked for the week as 380
instead of 38. The data entry control that would best prevent this error would be
A) a limit check.
B) a check digit.
C) batch total reconciliation.
D) a field check.
Answer: A