Question

Since the computer can do many jobs simultaneously, segregation is not a defined as it is in a manual system. How can a computer system be modified to compensate for the lack of segregation of duties?

• A. The computer system should be under the direction of the internal audit department.
• B. The computer system should be accessible to various competent parties so they can check on each others' work.
• C. Strong controls should be built into both the computer software and hardware to limit access and manipulation.
• D. Many companies run complete parallel manual an automated accounting systems for a cross check on input and output.

Answer 1

The correct option is C Strong controls should be built into both the computer software and hardware to limit access and manipulation.

The hardware and the computer software should be given more importance. It should be built in such a way that it gives limited access to its contents and less manipulation can be done. Manipulation in data in unethical and can lead to errors.