10.5 What are some business processes for which an organization might use batch
processing?
10.6 Why do you think that surveys continue to find that a sizable percentage of
organizations either do not have formal disaster recovery and business continuity
plans or have not tested and revised those plans for more than a year?
10.1 Match the following terms with their definitions:
__s__ 1. business continuity plan (BCP)
a. A file used to store information for long
periods of time.
__j__ 2. completeness check
b. A plan that describes how to resume IT
functionality after a disaster.
__o__ 3. hash total
c. An application control that verifies that the
quantity ordered is greater than 0.
__u__ 4. incremental daily backup
d. A control that verifies that all data was
transmitted correctly by counting the
number of odd or even bits.
__a__ 5. archive
e. An application control that tests whether a
customer is 18 or older.
__v__ 6. field check
f. A daily backup plan that copies all changes
since the last full backup.
__c__ 7. sign check
g. A disaster recovery plan that contracts for
use of an alternate site that has all
necessary computing and network
equipment, plus Internet connectivity.
__i__ 8. cold site
h. A disaster recovery plan that contracts for
use of another company’s information
system.
__e__ 9. limit check
i. A disaster recovery plan that contracts for
use of an alternate site that is pre-wired for
Internet connectivity but has no computing
or network equipment.
__k__ 10. zero-balance test
j. An application control that ensures that a
customer’s ship-to address is entered in a
sales order.
__n__ 11. recovery point objective (RPO)
k. An application control that makes sure an
account does not have a balance after
processing.
__m__ 12. recovery time objective (RTO)
l. An application control that compares the
sum of a set of columns to the sum of a set
of rows.
__p__ 13. record count
m. A measure of the length of time that an
organization is willing to function without
its information system.
__r__ 14. validity check
n. The amount of data an organization is
willing to re-enter or possibly lose in the
event of a disaster.
__t__ 15. check digit verification
o. A batch total that does not have any
intrinsic meaning.
__w__ 16. closed-loop verification
p. A batch total that represents the number of
transactions processed.
__d__ 17. parity checking
q. An application control that validates the
correctness of one data item in a
transaction record by comparing it to the
value of another data item in that
transaction record.
__q__ 18. reasonableness test
r. An application control that verifies that an
account number entered in a transaction
record matches an account number in the
related master file.
__x__ 19. financial total
s. A plan that describes how to resume
business operations after a major calamity,
like Hurricane Katrina, that destroys not
only an organization’s data center but also
its headquarters.
__y__ 20. turnaround document
t. A data-entry application control that
verifies the accuracy of an account number
by recalculating the last number as a
function of the preceding numbers.
u. A daily backup procedure that copies only
the activity that occurred on that particular
day.
v. A data-entry application control that could
be used to verify that only numeric data is
entered into a field.
w. A data-entry application control that
displays the value of a data item and asks
the user to verify that the system has
accessed the correct record.
x. A batch total that represents the total dollar
value of a set of transactions.
y. A document sent to an external party and
subsequently returned so that preprinted
data can be scanned rather than manually
reentered.
10.2 Excel Problem
Enter the following data into a spreadsheet and then perform the following tasks:
Employee
Number
Pay rate
Hours
worked
Gross Pay
Deductions
Net pay
12355
10.55
38
400.90
125.00
275.90
2178g
11.00
40
440.00
395.00
45.00
24456
95.00
90
8550.00
145.00
8405.00
34567
10.00
40
400.00
105.00
505.00
a. Calculate examples of these batch totals:
• A hash total
b. Assume the following rules govern normal data:
• Employee numbers are five-digits in length and range from 10000 through
99999.
• Maximum pay rate is $25, and minimum is $9.
• Hours worked should never exceed 40.
• Deductions should never exceed 40% of gross pay.
Give a specific example of an error or probable error in the data set that each of the
following controls would detect:
c. Create a control procedure that would prevent, or at least detect, each of the errors
in the data set.
• Employee number not numeric
• Pay rate too high or too low
This range test could be programmed using the data validation tool as follows:
• Hours worked too high
• Deductions too high relative to gross pay
• Error in calculating net pay
10.3 Excel Problem
The Moose Wings Cooperative Flight Club owns a number of airplanes and gliders. It
serves fewer than 2,000 members, who are numbered sequentially from the founder,
Tom Eagle (0001), to the newest member, Jacques Noveau (1368). Members rent the
flying machines by the hour, and all must be returned on the same day. The following
six records were among those entered for the flights taken on September 1, 2010:
Member #
Flight Date
MM/DD/YY
Plane Used
Takeoff time
Landing time
1234
09/10/10
G
6:25
8:46
4111
09/01/10
C
8:49
10:23
1210
09/01/10
P
3:42
5:42
0023
09/01/10
X
1:59
12:43
012A
09/01/10
P
12:29
15:32
0999
09/01/10
L
15:31
13:45
Valid plane codes (plane used column): C = Cessna, G = glider, L = Lear Jet, P = Piper
Cub)
a. Identify and describe any errors in the data.
Five of the six records contain errors as follows:
b. For each of the five data fields, suggest one or more input edit controls that could be
used to detect input errors.
Field 1 – Member number:
c. Enter the data in a spreadsheet and create appropriate controls to prevent or at
least detect the input errors.
Field 1 – Member number:
