Which of the following is usually a benefit of using electronic funds transfer EFT) for international cash transactions?
Answer(s): C
The processing and transmission of electronic transactions, such as EFTs, virtually eliminates human interaction. This process not only helps eliminate errors but also allows for the rapid detection and recovery from errors when they do occur.
Which of the following is a risk that is higher when an electronic funds transfer EFT system is used?
Answer(s): B
Unauthorized access to money transfer activities or data is an inherent and unique risk of EFT systems. An unauthorized person may attempt to read, alter, or delete information in data files or to enter authorized fund transfers. Hence, in the financial services industry, protection of confidential customer transactions is especially important. Moreover, unauthorized transfers subject a financial institution to a direct risk of serious loss.
If electronic funds transfer EFT) is used to pay vendor invoices, which of the following computer- assisted audit procedures would an auditor use to determine if any payments were made twice?I). Testing of EFT transactions for reasonableness.II). Identification of EFT transactions to the same vendor for the same dollar amount.III). Extraction of EFT transactions with unauthorized vendor codes.IV). Searching for EFT transactions with duplicate purchase order numbers.
EFT is a service provided by financial institutions worldwide that is based on EDI technology. EFT transaction costs are lower than for manual systems because documents and human intervention are eliminated from the transactions process.Inaccurate transaction processing including duplication) is a risk specific to EFT. Thus, an auditor should 1) review transactions with the same vendor for the same amount and 2) search for transactions with duplicate purchase order numbers. However, selection of transactions with unauthorized vendor codes and testing of transactions for reasonableness do not identify duplicate payments.
All of the following are potential security issues for e-commerce except:
E-commerce is the purchase and sale of goods and services by electronic means. Ecommerce may occur via online transactions on public networks electronic data interchange EDI), and email. E- commerce security issues include the correct identification of transacting parties authentication), determining who may rightfully make decisions authorization), and verification of payment data.While proliferation of computer viruses is a general security issue with regard to information systems, it is not a specific risk associated with e- commerce.
ABC Company is a clothing retailer. Greg is an employee of ABC Company and has recently purchased a leather jacket from ABC Company's website. This activity is:
Answer(s): A
Electronic commerce e-commerce) is generally defined as "conducting commercial activities over the Internet. These commercial activities can be business-to-business B2B), because-to-consumer B2C), and business-to-employee B2E). The activity that took place between Greg and ABC Company is hest characterized as a business-to-consumer activity.The transaction was with an individual who was not performing an employee function.
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