Question

Automated business process controls contained within IT systems are called:

a. preventive controls
b. pervasive controls
c. application controls
d. management controls

Answer 1

Correct choice would be (C) Application controls are specific controls embedded within the application systems or software used by an organization to ensure the accuracy, completeness, validity, and security of data processing. These controls are designed to monitor and manage the processing of transactions within the application systems, ensuring that business processes operate effectively and in accordance with predefined rules or criteria.

Answer 2

Automated business process controls in IT systems are known as application controls. They ensure accurate and secure processing of transactions within a system. Other control types include preventive, management, and pervasive controls.

Step-by-step explanation:

Automated business process controls contained within IT systems are referred to as application controls. These controls are designed to ensure that transactions are processed correctly, and they play a critical role in maintaining data integrity and accuracy. Application controls can include a range of automated checks, such as data input validation, authentication procedures, and access controls to prevent unauthorized access or changes to data.

Preventive controls are a different type of control that aims to deter errors or irregularities from occurring in the first place. Management controls are broader and involve strategies, policies, and procedures used by management to ensure the organization's objectives are achieved. Lastly, pervasive controls are generally embedded in the software environment to provide a secure and stable foundation for specific application controls.