Question 1

Identify the three categories of application controls and give one example of each.

Accepted Answer

Application controls fall into three cat

Question 2

The auditor may decide NOT to reduce assessed control risk even if internal controls are adequate. This approach is followed if:

Accepted Answer

A)  the cost of the study and tests of controls will exceed the savings from reduced substantive procedures. 
B)  the auditor plans to rely on the controls and reduce substantive testing. 
C)  a qualified opinion will be issued. 
D)  All of the above are true. 
A)  the cost of the study and tests of controls will exceed the savings from reduced substantive procedures. 
B)  the auditor plans to rely on the controls and reduce substantive testing. 
C)  a qualified opinion will be issued. 
D)  All of the above are true.

Question 3

In database management systems many applications share files, whereas in non- database environments each application manages its own data file.

Accepted Answer

A) True 
 B)False

Question 4

The audit procedure which is least useful in gathering evidence on significant computer processes is:

Accepted Answer

A)  test data. 
B)  generalised audit software. 
C)  tracing. 
D)  observation. 
A)  test data. 
B)  generalised audit software. 
C)  tracing. 
D)  observation.

Question 5

An auditor who is testing IT controls in a payroll system would most likely use test data that contains conditions such as:

Accepted Answer

A)  time tickets with invalid job numbers. 
B)  deductions not authorised by employees. 
C)  overtime not approved by supervisors. 
D)  payroll cheques with unauthorised signatures. 
A)  time tickets with invalid job numbers. 
B)  deductions not authorised by employees. 
C)  overtime not approved by supervisors. 
D)  payroll cheques with unauthorised signatures.

Question 6

Auditing around the computer is acceptable when general controls are strong.

Accepted Answer

A) True 
 B)False

Question 7

Discuss the advantages and benefits of using generalised audit software.

Accepted Answer

Advantages and benefits of using general

Identify the three categories of application controls and give one example of each.

The auditor may decide NOT to reduce assessed control risk even if internal controls are adequate. This approach is followed if:

In database management systems many applications share files, whereas in non- database environments each application manages its own data file.

The audit procedure which is least useful in gathering evidence on significant computer processes is:

An auditor who is testing IT controls in a payroll system would most likely use test data that contains conditions such as:

Auditing around the computer is acceptable when general controls are strong.

Discuss the advantages and benefits of using generalised audit software.

Demand for Audit and Assurance Services

Auditors Legal Environment

Audit Quality and Ethics

Audit Responsibilities and Objectives

Audit Evidence

Audit Planning and Documentation

Materiality and Risk

Internal Control and Control Risk

Fraud Auditing

Overall Audit Plan and Audit Program

Audit of the Sales and Collection Cycle: Tests of Controls and Substantive Tests of Transactions

Completing Tests in the Sales and Collection Cycle: Accounts Receivable

Audit Sampling

Audit of Transaction Cycles and Financial Statement Balances I

Audit of Transaction Cycles and Financial Statement Balances II

Completing the Audit

Audit Reporting

Other Auditing and Assurance Engagements

Filters

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

Identify the three categories of application controls and give one example of each.

The auditor may decide NOT to reduce assessed control risk even if internal controls are adequate. This approach is followed if:

In database management systems many applications share files, whereas in non- database environments each application manages its own data file.

The audit procedure which is least useful in gathering evidence on significant computer processes is:

An auditor who is testing IT controls in a payroll system would most likely use test data that contains conditions such as:

Auditing around the computer is acceptable when general controls are strong.

Discuss the advantages and benefits of using generalised audit software.

Demand for Audit and Assurance Services

Auditors Legal Environment

Audit Quality and Ethics

Audit Responsibilities and Objectives

Audit Evidence

Audit Planning and Documentation

Materiality and Risk

Internal Control and Control Risk

Fraud Auditing

Overall Audit Plan and Audit Program

Audit of the Sales and Collection Cycle: Tests of Controls and Substantive Tests of Transactions

Completing Tests in the Sales and Collection Cycle: Accounts Receivable

Audit Sampling

Audit of Transaction Cycles and Financial Statement Balances I

Audit of Transaction Cycles and Financial Statement Balances II

Completing the Audit

Audit Reporting

Other Auditing and Assurance Engagements

Filters