IT Controls Integrated into Internal Control Evaluations Explain input controls


The control procedures designed to assure that the organization fully captures all the transactions between itself and another entity, and to properly record those transactions, are referred to as input controls.
Input controls are designed to ensure that authorized transactions are correct, complete, and recorded in a timely fashion and that only authorized transactions exist. They include:
* Input validation tests
* Self-checking digits

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Fantastic Futons manufactures futons. The estimated number of futon sales for the first three months of 2010 are as follows: January 40,000 February 50,000 March 60,000 Finished goods inventory at the end of 2009 was 12,000 units. On average, 25 percent of the futons are produced during the month before they are sold, which normally accounts for the ending balance in finished goods inventory. The

planned selling price is $150 per unit. How many futons are budgeted to be produced in January? a. 44,500 b. 28,000 c. 40,500 d. 52,500

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Net present value analysis is based on a project's cash flows

Indicate whether the statement is true or false

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In a decentralized advertising system, the company sets up separate ad departments for different divisions, subsidiaries, regions, brands, or other categories that suit the company's needs.

Answer the following statement true (T) or false (F)

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Under the Privacy Act, any agency that proposes to establish or alter any system of

records must provide notice to: a. Congress b. the Office of Management and Budget c. Congress and the Office of Management and Budget d. none of the above; changes are published in the Federal Register and a hearing is conducted to decide the appropriateness and legality of the changes

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