Exam 10: The Impact of Information Technology on the Audit Process

Although IT can enhance a company's internal control, it can also affect a company's overall control risk. Identify any four of these new risks specific to IT environments.

Systems development, operations and data control, and librarianship are separated in an IT system.

Which one of the following computer- assisted auditing techniques allows fictitious and real transactions to be processed together without client operating personnel being aware of the testing process?

Discuss the circumstances that may exist in a 'network environment' which may challenge traditional general CIS controls.

One disadvantage of IT systems is the potential elimination of the control provided by division of duties of independent persons normally present in manual systems.

An auditor's investigation of a company's IT control procedures has disclosed the following four circumstances. Indicate which circumstance constitutes a weakness in internal control.

The most important output control is:

Auditing a small client in an IT environment poses some particular challenges for the auditor. Identify and describe.

Which one of the following is NOT a general control?

Internal control is ineffective when computer programmers:

Physical control over computer equipment restricts access to:

Discuss the major factors associated with complex IT systems that increase control risk and the likelihood of material misstatements in the financial statements.

Controls which apply to the processing of individual transactions are called:

A well- controlled IT system offers greater potential for reducing misstatements because:

When the auditor decides to audit around the computer, he or she is not required to test the client's IT controls.

Discuss what is meant by the term 'auditing through the computer'.

Identify the six categories of general controls and give one example of each.

A common assumption is that 'the information is because the computer produced it'.

Which one of the following is NOT usually part of a contingency plan?

Using the test data approach, the auditor processes a set of the client's actual transaction data using the auditor's computer programs on the auditor's computer equipment to determine whether the client's computer programs and equipment are processing data correctly.