Explain the concept of discretionary access privileges
In centralized systems, a system administrator usually determines who is granted access to specific resources and maintains the access control list. In distributed systems, however, resources may be controlled (owned) by end users. Resource owners in this setting may be granted discretionary access privileges, which allow them to grant access privileges to other users. For example, the controller, who is the owner of the general ledger, may grant read-only privileges to a manager in the budgeting department. The accounts payable manager, however, may be granted both read and write permissions to the ledger. Any attempt by the budgeting manager to add, delete, or change the general ledger will be denied. The use of discretionary access control needs to be closely supervised to prevent security breaches because of its liberal use.
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According to the FRC which of the following attributes contributes to the reliability and usefulness of audit reporting?
a. The audit methodology is well structured. b. Quality technical support is available when auditors require guidance. c. Auditors appropriately conclude as to the truth and fairness of the financial statements. d. The audit work is effectively reviewed.
Cash equivalents are defined as investments that carry terms of 90 days or less
Indicate whether the statement is true or false
Philp Inc. sold equipment with a $132,900 adjusted tax basis for $200,000. The purchaser paid $20,000 in cash and assumed Philp's $180,000 mortgage on the asset. Compute Philp's net cash flow from the sale assuming a 21% tax rate.
A. $20,000 B. -0- C. $15,800 D. None of the above
Which of the following consumer decision-making processes will probably be used in purchasing toothpaste?
A. Extended decision making B. Routinized response behavior C. Intensive decision making D. Limited decision making E. Perceptual scanning