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Difficulty: EasyInternal Controls in Computerized Accounting

Match each computerized internal control mechanism with its corresponding control objective in an accounting system.

  • Password ProtectionRestricts system access to authorized personnel only
  • Range CheckEnsures inputted numerical data falls within predetermined upper and lower limits
  • Audit TrailProvides an electronic record to trace accounting transactions from source to report
  • Segregation of IT DutiesSeparates system programming, data entry, and computer operation responsibilities

Answer

Password Protection matches with restricting system access to authorized personnel; Range Check matches with ensuring inputted numerical data falls within predetermined upper and lower limits; Audit Trail matches with providing an electronic record to trace accounting transactions; Segregation of IT Duties matches with separating programming, entry, and operation responsibilities.
Each control mechanism correctly pairs with its accounting system objective: password protection restricts unauthorized access, range checks enforce valid numerical ranges, audit trails log transaction histories, and segregation of duties divides operational permissions.

Step-by-Step Solution

1
Identify access controls in computerized accounting.
Password Protection corresponds to restricting system entry to authorized users.
Access controls guard system software and databases against unauthorized entry.
2
Identify data validation and input controls.
Range Check matches with verifying that values remain within upper and lower parameters.
Input validation checks prevent erroneous data entry during processing.
3
Identify verification and audit controls.
Audit Trail matches with maintaining a log for transaction tracing.
An automated audit trail preserves accountability and enables detailed verification.
4
Identify organizational and administrative security controls.
Segregation of IT Duties matches with dividing key IT responsibilities.
Dividing duties prevents fraud, error concealment, and unauthorized program changes.

Key Concept

Internal Controls in Computerized Accounting
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Internal Controls in Computerized Accounting

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