Exam 7: Auditing Information Technology-Based Processes

Which of the following is the most significant disadvantage of auditing around the computer rather than through the computer?

This piece of audit evidence is often considered to be the most important because it is a signed acknowledgment of management's responsibility for the fair presentation of the financial statements and a declaration that they have provided complete and accurate information to the auditors during all phases of the audit.

The general guidelines, known as the generally accepted auditing standards, which include the concepts of presentation in accordance with the established criteria, the consistent application of established principles, adequate disclosure, and the expression of an opinion, relate to the:

The existence of IT-based business processes often result in details of transactions being entered directly into the computer system, results in a lack of physical evidence to visibly view.This situation is referred to as:

The main purpose of an audit is to assure users of the financial information about the:

Which of the following is not one of the identified causes of information risk?

The auditor's test of the accuracy of monetary amounts of transactions and account balances is known as:

The advantages of using IT-based accounting systems, where the details of transactions are entered directly into the computer include:

Which of the following is a proper description of an auditor report?

Which of the following is not a part of general accepted auditing standards?

These tests of the security controls involve various methods of entering the company's system to determine whether controls are working as intended.

One of the most effective ways a client can protect its computer system is to place physical controls in the computer center.Physical controls include all of the following, except:

It's necessary to study information-based processing and the related audit function because:

Risk assessment is a process designed to:

Generalized audit software can be used to:

GAAS, generally accepted auditing standards, provide a general framework for conducting quality audits, but the specific standards--or detailed guidance--are provided by all of the following groups except:

Because it is not possible to test all transactions and balances, auditors rely on this to choose and test a limited number of items and transactions and then make conclusions about the balance as a whole.

Auditors should develop a written audit program so that:

The general guidelines, known as the generally accepted auditing standards, which include the concepts of adequate planning and supervision, internal control, and evidence, relate to the:

This organization was established by the IFAC to set International Standards on Auditing (ISAs) that contribute to the uniform application of auditing practices on a worldwide basis.