Author Question: Name one type of preventive control that would be useful in a computerized information system. ... (Read 128 times)

sammy · **on:** Jul 5, 2018

Name one type of preventive control that would be useful in a computerized information system.

What will be an ideal response?

Question 2

Merchandise inventory at the end of the year was inadvertently overstated. Which of the following statementscorrectly states the effect of the error on net income, assets, and owner's equity?
a. net income is overstated, assets are overstated, and owner's equity is understated
b. net income is overstated, assets are overstated, and owner's equity is overstated
c. net income is understated, assets are understated, and owner's equity is understated
d. net income is understated, assets are understated, and owner's equity is overstated

cupcake16 · **Reply #1 on:** Jul 5, 2018

Answer to Question 1

Preventive controls include the use of passwords and limiting access to certain computer files and programs. Computer programs could include calculations and reasonableness checks and limits to flag and correct errors.

Answer to Question 2

b