Question 1

CASE 2: AGRIGROW TECH LTD

AgriGrow Tech Ltd develops automated drone-based irrigation systems. They employ 500 seasonal workers during peak harvest. The payroll master file is updated by the HR clerk, who also processes the weekly payroll run. Seasonal workers are paid in cash. The warehouse manager orders drone parts, receives the goods, and authorizes the purchase invoices for payment. AgriGrow recently implemented a new cloud-based inventory system, but the IT manager left, leaving the system with no password complexity requirements.

QUESTION:
The lack of password complexity requirements in the new cloud-based inventory system is a deficiency in which type of control?

Accepted Answer

Distinguish between IT General Controls (which apply to the whole system environment, like security and access) and IT Application Controls (which apply to specific transactions). Passwords control 'logical access' to the system.

Question 2

What mistakes do candidates make on this ACCA question?

Accepted Answer

Confusing IT General Controls with IT Application Controls.

How to approach this question

Full Answer

Common mistakes

Practice the full ACCA AA — Audit and Assurance Practice Exam 4

More questions from this exam