Which of the following would be considered a 'General Control' in an IT environment?

Answer options:

A validation check that ensures the 'quantity ordered' field contains only numbers.

Procedures for managing passwords and user access rights across the organization.

Automatic calculation of sales tax by the invoicing software.

A hash total of employee IDs in a payroll batch.

How to approach this question

Distinguish General (Environment/Infrastructure) from Application (Specific Transaction).

Full Answer

B.Procedures for managing passwords and user access rights across the organization.✓ Correct

Procedures for managing passwords and user access rights across the organization.

General controls are policies and procedures that relate to many applications and support the effective functioning of application controls. Examples include data center and network operations, system software acquisition, access security, and application system acquisition, development, and maintenance.

Common mistakes

Confusing input/processing controls (Application) with environmental controls (General).

Question 21 All questions Question 23

Practice the full CPA AUD Practice Exam

78 questions · hints · full answers · grading

More questions from this exam

Q01A CPA firm is auditing a large public company. The audit partner's spouse has just been promoted ...Hard Q02During the acceptance phase of a new audit engagement for a private company, the successor audito...Hard Q03A CPA firm is designing its system of quality control. Which of the following policies would most...Medium Q04An auditor is establishing an understanding with a client regarding the services to be performed ...Medium Q05Under the AICPA Code of Professional Conduct, which of the following fee arrangements is prohibit...Medium

View all 78 questions →