CIA PART 1 CONTROL TYPES & TECHNIQUES EXAM.FINAL TEST 2026\2027.
Control
is "any action taken by management, the board, and other parties to manage risk and
increase the likelihood that established objectives and goals will be acheived. Management
plans, organizaes, and directs the performance of sufficient actions to provide reasonable
assurance that objectives and goals will be achieved.
Control processes
are "the policies, procedures (both manual and automated), and activities that are part of
the control framework, designed and operated to ensure that risks are contained within the
level that an organization is willing to accept
measurement and correction
Control requires feedback on the results of organizational activities for the purposes of
________ ____ __________
Transaction trails
a complete trail useful for audit and other purposes might exist for only a short time or only
in computer readable form. The nature of the trail is often dependent on the transaction
processing mode.
Uniform processing of transactions
Computer processing uniformly subjects similar transactions to the same processing
instructions and thus virtually eliminates clerical error.
Segregation of functions
many controls once performed by separate individuals may be concentrated in computer
systems. Thus, an individual who has access to the computer may perform incompatible
functions. As a result, other controls may be necessary to achieve the control objectives
ordinarily accomplished by ________ ___ ______
Potential for increased management supervision
computer systems offer management many analytical tools for review and supervision of
operations. These additional controls may enhance internal control. For example, traditional
comparisons of actual and budgeted operating ratios and reconciliations of accounts are
often available for review on a more timely basis. Furtermore, some programmed
applications provide statistics regarding computer operations that may be used to monitor
actual processing.
, CIA PART 1 CONTROL TYPES & TECHNIQUES EXAM.FINAL TEST 2026\2027.
Initiation or subsequent execution of transactions by compuer
certain transactions may be automatically initiated or certain procedures required to
execute a transaction may be automatically performed by a computer system. The
authorization of these transactions or procedures may not be documented in the same way
as those in a manual system. Accordingly, management's authorization may be implicit in its
acceptance of the design of the system.
Preventative controls
_______ ______ deter the occurrence of unwanted events
detective controls
_________ ________ alert the proper people after an unwanted event.
Corrective controls
correct the negative effects of unwanted events
directive controls
_____ _____ cause or encourage the occurrence of a desirable event.
compensatory "mitigated" controls
_______ _______ may reduce risk when the primary controls are ineffective. However, they
do not by themselves, reduce risk to an acceptable level
Complementary controls
_______ _____ work with other controls to reduce risk to an acceptable level. Their synergy
is more effective than either control by itself.
Batch processing
In this mode, transactions are accumulated and submitted to the computer as a single
batch.
Batch processing
in ________ _______, the user cannot influence the process once the job has begun (except
to ask that it be aborted completely). (S)he must wait until the job is finished running to see
whether any transactions were rejected and failed to post
Memo posting
_______ _____ is used by banks for financial transactions when bath processing is used. It
posts temporary credit or debit transactions to an account if the complete posting to update
the balance will be done as part of the end of day batch processing
Control
is "any action taken by management, the board, and other parties to manage risk and
increase the likelihood that established objectives and goals will be acheived. Management
plans, organizaes, and directs the performance of sufficient actions to provide reasonable
assurance that objectives and goals will be achieved.
Control processes
are "the policies, procedures (both manual and automated), and activities that are part of
the control framework, designed and operated to ensure that risks are contained within the
level that an organization is willing to accept
measurement and correction
Control requires feedback on the results of organizational activities for the purposes of
________ ____ __________
Transaction trails
a complete trail useful for audit and other purposes might exist for only a short time or only
in computer readable form. The nature of the trail is often dependent on the transaction
processing mode.
Uniform processing of transactions
Computer processing uniformly subjects similar transactions to the same processing
instructions and thus virtually eliminates clerical error.
Segregation of functions
many controls once performed by separate individuals may be concentrated in computer
systems. Thus, an individual who has access to the computer may perform incompatible
functions. As a result, other controls may be necessary to achieve the control objectives
ordinarily accomplished by ________ ___ ______
Potential for increased management supervision
computer systems offer management many analytical tools for review and supervision of
operations. These additional controls may enhance internal control. For example, traditional
comparisons of actual and budgeted operating ratios and reconciliations of accounts are
often available for review on a more timely basis. Furtermore, some programmed
applications provide statistics regarding computer operations that may be used to monitor
actual processing.
, CIA PART 1 CONTROL TYPES & TECHNIQUES EXAM.FINAL TEST 2026\2027.
Initiation or subsequent execution of transactions by compuer
certain transactions may be automatically initiated or certain procedures required to
execute a transaction may be automatically performed by a computer system. The
authorization of these transactions or procedures may not be documented in the same way
as those in a manual system. Accordingly, management's authorization may be implicit in its
acceptance of the design of the system.
Preventative controls
_______ ______ deter the occurrence of unwanted events
detective controls
_________ ________ alert the proper people after an unwanted event.
Corrective controls
correct the negative effects of unwanted events
directive controls
_____ _____ cause or encourage the occurrence of a desirable event.
compensatory "mitigated" controls
_______ _______ may reduce risk when the primary controls are ineffective. However, they
do not by themselves, reduce risk to an acceptable level
Complementary controls
_______ _____ work with other controls to reduce risk to an acceptable level. Their synergy
is more effective than either control by itself.
Batch processing
In this mode, transactions are accumulated and submitted to the computer as a single
batch.
Batch processing
in ________ _______, the user cannot influence the process once the job has begun (except
to ask that it be aborted completely). (S)he must wait until the job is finished running to see
whether any transactions were rejected and failed to post
Memo posting
_______ _____ is used by banks for financial transactions when bath processing is used. It
posts temporary credit or debit transactions to an account if the complete posting to update
the balance will be done as part of the end of day batch processing
