Exam 7: Auditing Information Technology-Based Processes

The primary objective of compliance testing in a financial statement audit is to determine whether:

The two broad categories of general controls that relate to IT systems include which of the following:

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

A large part of the work performed by an auditor in the audit planning process is the gathering of evidence about the company's internal controls.This can be completed in any of the following ways, except:

Which management assertion determines that transactions and related asset accounts balances are actually owned and that liability account balances represent actual obligations?

Which of the following types of audits is most likely to be conducted for the purpose of identifying areas for cost savings?

IT audit procedures typically include a combination of data accuracy tests where the data processed by computer applications are reviewed for correct dollar amounts or other numerical values.These procedures are referred to as:

Audit procedures designed to evaluate both general controls and application controls are referred to as:

Techniques used for gathering evidence include all of the following, except:

In addition to testing system documentation, auditors should test the three main functions of computer applications.Which of the following is not one of these functions?

During substantive testing, if material misstatements have been found to exist, which of the following actions should be taken next?

The proof of the fairness of the financial information is:

This concept means that the auditors should not automatically assume that their clients are honest, but that they (the auditors) must have a questioning mind and a persistent approach to evaluating evidence for possible misstatements.

Which of the following is most likely to be an attribute unique to the financial statement audit work of CPAs, compared with work performed by attorneys or practitioners of other business professions?

Which of the following audit objectives relates to the management assertion of existence?

Related audit tests to review the existence and communication of company policies regarding important aspects of IT administrative control include all of the following, except:

The generally accepted auditing standards are divided into three groups.Which of the following is not one of those groups?

Which of the following is the most effective way of auditing the internal controls of an IT system?

Controls meant to prevent the destruction of information as the result of unauthorized access to the IT system are referred to as:

This type of processing control test involves a comparison of different items that are expected to have the same values, such as comparing two batches or comparing actual data against a predetermined control total.