CPA Quiz: Evaluate Input Processing And Output Controls

What this quiz covers

This quiz focuses on Evaluate Input Processing And Output Controls, giving you a quick way to practice the rules, question types, and explanations that matter most for CPA.

How to use this quiz

Try each quiz question before looking at the correct answer. Use the explanations to review missed ideas, then come back to similar questions until the pattern feels familiar.

Question 1

1. Encryption of the batch file before processing begins.
2. Access controls limiting who can initiate batch processing runs.
3. A run-to-run control total that compares the number of records and total amounts processed against expected totals established before the run. (correct answer)
4. A format check validating the structure of each transaction record.

Question 2

1. Input validation - preventing entries in incorrect date formats.
2. Processing control - enforcing period-end cutoff by preventing transactions from being processed to a closed accounting period. (correct answer)
3. Output control - ensuring reports reflect only transactions in the current period.
4. Access control - restricting which users can post journal entries.

Question 3

1. Input control - validating journal entries before posting.
2. Processing control - ensuring journal entries are calculated correctly.
3. Access control - restricting who can view journal entries.
4. Output control - using system-generated reports as a detective control to identify unusual or unauthorized transactions after posting. (correct answer)

Question 4

1. An input control verifying payroll data at entry.
2. A processing control ensuring the payroll calculations are correct.
3. An output control reconciling system-generated totals to the general ledger to verify completeness and accuracy of the payroll processing. (correct answer)
4. An access control limiting who can approve payroll disbursements.

Question 5

1. Attempting to enter transactions with invalid customer IDs, missing required fields, or out-of-range amounts, and verifying that the system rejects or flags them. (correct answer)
2. Reviewing the system's access control log to identify who has made entries.
3. Reconciling the total revenue recognized to the general ledger balance.
4. Reviewing the disaster recovery plan for the revenue recognition system.

Question 6

1. A checklist or automated template that validates the financial statement package against required components (all statements, notes, supplementary schedules) before distribution. (correct answer)
2. Encrypting the financial statements before sending them to external parties.
3. Requiring that financial statements be printed on company letterhead.
4. Storing a copy of all financial statements in an archive system.

Question 7

1. Requiring the report to be printed on secure paper.
2. Restricting electronic access to the report to finance managers only.
3. Reconciling the prior period figures in the report to the prior period's audited financial statements or general ledger balances. (correct answer)
4. Applying a date stamp to all report pages when printed.

Question 8

1. An output control that verifies payment reports after disbursements are made.
2. An access control that restricts payment processing to authorized staff.
3. A processing control that validates transactions against multiple authorization records before allowing them to proceed. (correct answer)
4. An input control that validates invoice data format at the time of entry.

Question 9

1. A processing control that prevents unmatched payments from being processed.
2. An output control that provides a detective check over payment processing completeness and authorization. (correct answer)
3. An input control that validates purchase order data at entry.
4. An access control restricting who can approve vendor payments.

Question 10

1. Completeness check failure - the quantity field was left blank.
2. Limit or range check failure - the system should have rejected or flagged quantities exceeding a reasonable maximum. (correct answer)
3. Validity check failure - the quantity does not match an authorized list.
4. Format check failure - the quantity was entered in an incorrect format.

Question 11

1. Encrypting all billing data and storing it in a secure database.
2. Input: validating customer IDs and amounts at entry; Processing: run-to-run control totals verifying all invoices are processed; Output: reconciling billed amounts to the accounts receivable ledger. (correct answer)
3. Restricting billing system access to accounts receivable staff only.
4. Generating daily billing reports and distributing them to the finance team.

Question 12

1. A processing control that recalculates debits and credits after posting.
2. An output control that generates a trial balance report.
3. An input control that enforces the fundamental accounting equation at the point of data entry. (correct answer)
4. An access control requiring two users to approve each journal entry.

Question 13

1. To encrypt input data fields for security before database storage.
2. To generate output reports summarizing all input transactions for management review.
3. To restrict which users are authorized to enter data into the application.
4. To automatically validate data at the point of entry using rules such as format, range, completeness, and validity checks - rejecting or flagging entries that fail validation. (correct answer)

Question 14

1. A range check input control enforcing reasonable boundaries for useful life values. (correct answer)
2. A validity check verifying the useful life against an authorized list.
3. A completeness check ensuring the useful life field is not blank.
4. A processing control applied during the depreciation calculation run.

Question 15

1. A range check validating transaction amounts.
2. A completeness check ensuring all required fields are populated.
3. An output reconciliation comparing processed totals to source documents.
4. A duplicate transaction check that compares new entries to previously processed transactions on key fields such as vendor, invoice number, amount, and date. (correct answer)

Question 16

1. Reviewing the application's access control list to confirm only authorized users can access the system.
2. Re-performing a sample of interest calculations manually using known inputs and comparing the results to system outputs to verify calculation accuracy. (correct answer)
3. Reviewing the system's backup logs to confirm data is protected.
4. Confirming that the application was tested before its initial deployment.

Question 17

1. Ensure that data entered into a system is accurate, complete, and authorized before it is processed. (correct answer)
2. Encrypt all data as it is entered to protect confidentiality.
3. Prevent unauthorized users from logging into the application.
4. Generate output reports that management uses for decision-making.

Question 18

1. Implementing access controls on the report distribution system, requiring authentication to retrieve reports, and logging all report access. (correct answer)
2. Applying range checks to all amounts in the report before distribution.
3. Requiring a second employee to verify all calculations before the report is finalized.
4. Printing reports immediately after generation and locking them in a filing cabinet.

Question 19

1. Format check - verifying the data is in the correct format.
2. Range check - verifying the data falls within an acceptable range.
3. Validity check - verifying the data matches an authorized value in a reference table. (correct answer)
4. Completeness check - verifying all required fields are populated.

Question 20

1. A field validation that rejects entries exceeding a maximum dollar amount.
2. A batch control total that compares the sum of transaction amounts before and after processing to verify completeness. (correct answer)
3. A report that lists all transactions processed during the period for management review.
4. A system prompt that requires users to confirm their identity before entering data.