Question

Which of the following best explains the relationship between general controls and application controls?

A) Application controls are effective even if general controls are extremely weak.
B) Application controls are likely to be effective only when general controls are effective.
C) General controls have no impact on application controls.
D) None of the above

Answer 1

Application controls are most effective when supported by strong general controls, as the latter establish a secure and functional IT environment necessary for the former to operate effectively.

Step-by-step explanation:

The relationship between general controls and application controls is that application controls are likely to be effective only when general controls are effective. General controls, which include overall governance of the IT environment, security management, and operating procedures, create a supportive framework for application controls to function properly. Without strong general controls, application-specific controls can be more easily circumvented or rendered ineffective, as the broader systems and protocols that uphold security and proper processing may not be reliable.