AAT L4 Accounting Systems and Controls

Question 1

Which of the following is an example of an application control in an accounting information system?

Accepted Answer

Input validation checks on data entry fields

Answer

Physical access restrictions to the server room

Answer

Password policies requiring regular changes

Answer

Uninterruptible power supply for the server

Question 2

The internal control principle of segregation of duties requires that:

Accepted Answer

No single person should control all aspects of a transaction from initiation to completion

Answer

All employees should be able to perform all tasks

Answer

The managing director should approve all transactions

Answer

Only qualified accountants should access the system

Question 3

A SWOT analysis conducted as part of an accounting systems review considers:

Accepted Answer

Strengths, Weaknesses, Opportunities, and Threats related to the system

Answer

Only financial data from the trial balance

Answer

Staff holiday entitlements and absence records

Answer

The company's share price performance

Question 4

Which of the following would be classified as a weakness in an accounting system?

Accepted Answer

The purchase ledger clerk can also authorise payments to suppliers

Answer

Monthly bank reconciliations performed by an independent person

Answer

All journal entries require supporting documentation

Answer

Access to the payroll system is restricted to HR and payroll staff

Question 5

Under the Bribery Act 2010, a UK organisation can be held liable if:

Accepted Answer

A person associated with the organisation bribes another to obtain business, and the organisation lacked adequate procedures

Answer

An employee commits bribery but the organisation had adequate procedures to prevent it

Answer

A competitor engages in bribery in the same market

Answer

A foreign subsidiary operates in a country where bribery is customary

Question 6

When evaluating an accounting system, a cost-benefit analysis is used to:

Accepted Answer

Compare the costs of proposed system changes against the expected benefits

Answer

Calculate the company's profit margin

Answer

Determine the depreciation charge on computer equipment

Answer

Allocate overhead costs to departments