Question 1

The effectiveness of general controls is an important consideration for audit teams when assessing control risk on an audit.Which management assertions are primarily affected by general controls?

Accepted Answer

A)   Completeness and Accuracy
B)   Occurrence and Rights and Obligations
C)   Accuracy and Occurrence
D)   Completeness and OccurrenceE) C) and D)
F) A) and D)

Question 2

Why is it important that the organization establish systems development and documentation standards?

Accepted Answer

A)   These standards enable the organization to understand the programming logic underlying recently-developed programs.
B)   These standards ensure that the program controls and documentation included in recently-developed programs is adequate.
C)   The absence of these standards would constitute a material weakness in internal control.
D)   These standards ensure the appropriate separation of duties of computer personnel.E) B) and C)
F) B) and D)

Question 3

Which of the following categories of general controls includes retention and recovery techniques for data and related programs?

Accepted Answer

A)   Access to programs and data
B)   Computer operations
C)   Data file controls
D)   Program change controlsE) C) and D)
F) A) and C)

Question 4

The purpose of test data is to determine whether

Accepted Answer

A)   the audit team's test data are consistent with the client's normal transactions.
B)   controls operate as described in responses to internal control questionnaire items and program flowcharts.
C)   every possible error is prevented or detected by the client's computer controls.
D)   all possible combinations of valid data are correctly processed.E) None of the above
F) All of the above

Question 5

Which of the following input controls would be least likely to identify the failure of an employee to input a transaction for which documentary evidence has been prepared?

Accepted Answer

A)   Batch totals
B)   Hash totals
C)   Missing data tests
D)   Sequence testsE) C) and D)
F) B) and C)

Question 6

Computer controls that are pervasive and apply to all applications of a computerized processing system are referred to as

Accepted Answer

A)   computer controls.
B)   environment controls.
C)   automated application controls.
D)   general controls.E) All of the above
F) A) and C)

Question 7

The reprocessing of actual data using programs developed by the audit team to evaluate program controls is called

Accepted Answer

A)   test data.
B)   test deck.
C)   generalized audit software.
D)   parallel simulation.E) A) and B)
F) None of the above

Question 8

Audit teams would least likely use computer-assisted audit techniques to

Accepted Answer

A)   access client data files.
B)   prepare spreadsheets.
C)   assess control risk related to computerized processing systems.
D)   construct and perform parallel simulations.E) A) and B)
F) A) and C)

Question 9

Each of the following automated application controls are designed to ensure that the input of individual transactions and data is accurate except for

Accepted Answer

A)   check digits.
B)   valid sign tests.
C)   sequence tests.
D)   limit and reasonableness tests.E) A) and B)
F) B) and C)

Question 10

Which of the following is not a control included as part of the systems development life cycle?

Accepted Answer

A)   Ensuring that all software acquisition and program development efforts are consistent with the organization's needs and objectives
B)   Testing and validating new programs and developing proper implementation plans
C)   Requiring that all programming efforts take place under the control of the requesting user department
D)   Ensuring that data are converted completely and accurately for use in the new systemsE) A) and C)
F) A) and B)

Question 11

To obtain evidence that controls over access to computer programs are properly functioning,audit teams most likely would

Accepted Answer

A)   create checkpoints at periodic intervals after data processing to test for unauthorized use of the system.
B)   examine the transaction log to discover whether any transactions were lost or entered twice due to a system malfunction.
C)   enter invalid identification numbers or passwords to ascertain whether the system rejects them.
D)   vouch a random sample of processed transactions to assure proper authorization.E) A) and B)
F) B) and D)

Question 12

Which of the following controls most likely would ensure that an organization can reconstruct its financial records?

Accepted Answer

A)   Hardware controls are built into the computer by the computer manufacturer.
B)   Backup files are stored in a location separate from original copies.
C)   Personnel who are independent of data input perform parallel simulations.
D)   System flowcharts provide accurate descriptions of computer operations.E) A) and B)
F) B) and D)

Question 13

Which of the following is a general control that would most likely assist an organization whose systems analyst resigned during the development of a major project?

Accepted Answer

A)   Grandfather-father-son file retention
B)   Input and output validation routines
C)   Systems documentation
D)   Check digit verificationE) None of the above
F) A) and C)

Question 14

Tests of controls in an advanced computerized processing system

Accepted Answer

A)   can be performed using only actual transactions because testing simulated transactions does not provide relevant evidence.
B)   can be performed using actual transactions or simulated transactions.
C)   is impractical because many procedures within the computerized processing system leave no visible evidence of having been performed.
D)   is inadvisable because it may distort the evidence in real-time systems.E) C) and D)
F) A) and B)

Question 15

Computer operations controls are typically implemented for files and data used in processing.The major objectives of these controls include each of the following except for

Accepted Answer

A)   ensure that appropriate files are used in computerized processing.
B)   ensure restricted access to the computing environment.
C)   ensure that files are appropriately secured and protected from loss.
D)   ensure that files can be reconstructed from earlier versions of information used in processing.E) None of the above
F) A) and B)

Question 16

Which of the following is not true with respect to the test data approach for evaluating computer controls?

Accepted Answer

A)   The test data are created for a separate entity and are run simultaneously with the client's actual data.
B)   Only one of each type of error transaction needs to be included in the test data.
C)   The manual results of processing the test data are compared to the results of processing these data through the client's computerized processing system.
D)   Audit teams consider potential errors and conditions of interest in generating the test data.E) All of the above
F) A) and B)

Question 17

Audit teams would most likely introduce test data into a computerized payroll system to test internal controls related to the

Accepted Answer

A)   existence of unclaimed payroll checks held by supervisors.
B)   early cashing of payroll checks by employees.
C)   discovery of invalid employee identification numbers.
D)   proper approval of overtime by supervisors.E) C) and D)
F) A) and B)

Question 18

Which of the following statements best describes the impact on an audit when a client uses computerized processing of transactions?

Accepted Answer

A)   The objective of the audit examination focuses on detection of fraud and theft through the computer.
B)   The type of substantive procedures performed by the audit team change because of the use of computerized processing.
C)   The effectiveness of computer controls implemented by the client over its computerized processing may need to be evaluated by audit teams.
D)   Different independence standards are introduced for audit teams when clients utilize computerized processing.E) B) and C)
F) A) and D)

Exam 20: Auditing and Information Technology

Which of the following is a general control that would most likely assist an organization whose systems analyst resigned during the development of a major project?

Correct Answer
verified

To obtain evidence that controls over access to computer programs are properly functioning,audit teams most likely would

Correct Answer
verified

The purpose of test data is to determine whether

Correct Answer
verified

Each of the following automated application controls are designed to ensure that the input of individual transactions and data is accurate except for

Correct Answer
verified

Why is it important that the organization establish systems development and documentation standards?

Correct Answer
verified

Computer operations controls are typically implemented for files and data used in processing.The major objectives of these controls include each of the following except for

Correct Answer
verified

The effectiveness of general controls is an important consideration for audit teams when assessing control risk on an audit.Which management assertions are primarily affected by general controls?

Correct Answer
verified

Tests of controls in an advanced computerized processing system

Correct Answer
verified

Audit teams would least likely use computer-assisted audit techniques to

Correct Answer
verified

Audit teams would most likely introduce test data into a computerized payroll system to test internal controls related to the

Correct Answer
verified

Which of the following input controls would be least likely to identify the failure of an employee to input a transaction for which documentary evidence has been prepared?

Correct Answer
verified

Which of the following is not true with respect to the test data approach for evaluating computer controls?

Correct Answer
verified

Which of the following categories of general controls includes retention and recovery techniques for data and related programs?

Correct Answer
verified

Computer controls that are pervasive and apply to all applications of a computerized processing system are referred to as

Correct Answer
verified

Which of the following is not a control included as part of the systems development life cycle?

Correct Answer
verified

Which of the following controls most likely would ensure that an organization can reconstruct its financial records?

Correct Answer
verified

Which of the following statements best describes the impact on an audit when a client uses computerized processing of transactions?

Correct Answer
verified

The reprocessing of actual data using programs developed by the audit team to evaluate program controls is called

Correct Answer
verified

Exam 20: Auditing and Information Technology

Which of the following is a general control that would most likely assist an organization whose systems analyst resigned during the development of a major project?

Correct AnswerverifiedShow Answer

To obtain evidence that controls over access to computer programs are properly functioning,audit teams most likely would

Correct AnswerverifiedShow Answer

The purpose of test data is to determine whether

Correct AnswerverifiedShow Answer

Each of the following automated application controls are designed to ensure that the input of individual transactions and data is accurate except for

Correct AnswerverifiedShow Answer

Why is it important that the organization establish systems development and documentation standards?

Correct AnswerverifiedShow Answer

Computer operations controls are typically implemented for files and data used in processing.The major objectives of these controls include each of the following except for

Correct AnswerverifiedShow Answer

The effectiveness of general controls is an important consideration for audit teams when assessing control risk on an audit.Which management assertions are primarily affected by general controls?

Correct AnswerverifiedShow Answer

Tests of controls in an advanced computerized processing system

Correct AnswerverifiedShow Answer

Audit teams would least likely use computer-assisted audit techniques to

Correct AnswerverifiedShow Answer

Audit teams would most likely introduce test data into a computerized payroll system to test internal controls related to the

Correct AnswerverifiedShow Answer

Which of the following input controls would be least likely to identify the failure of an employee to input a transaction for which documentary evidence has been prepared?

Correct AnswerverifiedShow Answer

Which of the following is not true with respect to the test data approach for evaluating computer controls?

Correct AnswerverifiedShow Answer

Which of the following categories of general controls includes retention and recovery techniques for data and related programs?

Correct AnswerverifiedShow Answer

Computer controls that are pervasive and apply to all applications of a computerized processing system are referred to as

Correct AnswerverifiedShow Answer

Which of the following is not a control included as part of the systems development life cycle?

Correct AnswerverifiedShow Answer

Which of the following controls most likely would ensure that an organization can reconstruct its financial records?

Correct AnswerverifiedShow Answer

Which of the following statements best describes the impact on an audit when a client uses computerized processing of transactions?

Correct AnswerverifiedShow Answer

The reprocessing of actual data using programs developed by the audit team to evaluate program controls is called

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified