Question 1

Which of the following statements regarding an audit program is true?

Accepted Answer

A) An audit program should be standardized so that it may be used on any client engagement. 
B) The audit program should be completed by the client company before the audit planning stage begins. 
C) An audit program should be developed by the internal auditor during the audit's completion/reporting phase. 
D) An audit program establishes responsibility for each audit test by requiring the signature or initials of the auditor who performed the test. 
A) An audit program should be standardized so that it may be used on any client engagement. 
B) The audit program should be completed by the client company before the audit planning stage begins. 
C) An audit program should be developed by the internal auditor during the audit's completion/reporting phase. 
D) An audit program establishes responsibility for each audit test by requiring the signature or initials of the auditor who performed the test.

Question 2

Decision makers are typically forced to rely on others for information.When the source of the information is removed from the decision maker, the information stands a greater chance of being misstated.A decision maker may become detached from the source of information due to geography, organizational layers, or other factors.This describes which cause of information risk?

Accepted Answer

A) The lack of CPA independence 
B) The volume and complexity of underlying data 
C) The motive of the preparer 
D) The remoteness of information 
A) The lack of CPA independence 
B) The volume and complexity of underlying data 
C) The motive of the preparer 
D) The remoteness of information

Question 3

The chance that information used by decision makers may be inaccurate is referred to as:

Accepted Answer

A) Sample risk 
B) Data risk 
C) Audit trail risk 
D) Information risk 
A) Sample risk 
B) Data risk 
C) Audit trail risk 
D) Information risk

Question 4

Which of the following is not considered a cause for information risk?

Accepted Answer

A) Management's geographic location is far from the source of the information needed to make effective decisions. 
B) The information is collected and prepared by persons who use the information for very different purposes 
C) The information relates to business activities that are not well understood by those who collect and summarize the information for decision makers. 
D) The information has been tested by internal auditors and a CPA firm. 
A) Management's geographic location is far from the source of the information needed to make effective decisions. 
B) The information is collected and prepared by persons who use the information for very different purposes 
C) The information relates to business activities that are not well understood by those who collect and summarize the information for decision makers. 
D) The information has been tested by internal auditors and a CPA firm.

Question 5

When companies rely on external, independent computer service centers to handle all or part of their IT needs, it is referred to as:

Accepted Answer

A) External processing 
B) WAN processing 
C) Database management system 
D) IT out 
A) External processing 
B) WAN processing 
C) Database management system 
D) IT out

Question 6

Audit tests developed for an audit client are documented in a(n):

Accepted Answer

A) Audit Program 
B) Audit Objective 
C) Management Assertion 
D) General Objectives 
A) Audit Program 
B) Audit Objective 
C) Management Assertion 
D) General Objectives

Question 7

The management assertion related to valuation of transactions and account balances would include all of the following, except:

Accepted Answer

A) Accurate in terms of dollar amounts and quantities 
B) Supported by detailed evidence 
C) Real 
D) Correctly summarized 
A) Accurate in terms of dollar amounts and quantities 
B) Supported by detailed evidence 
C) Real 
D) Correctly summarized

Question 8

The IT environment plays a key role in how auditors conduct their work in all but which of the following areas:

Accepted Answer

A) Consideration of risk 
B) Consideration of information fairness 
C) Design and performance of audit tests 
D) Audit procedures used 
A) Consideration of risk 
B) Consideration of information fairness 
C) Design and performance of audit tests 
D) Audit procedures used

Which of the following statements regarding an audit program is true?

The chance that information used by decision makers may be inaccurate is referred to as:

Which of the following is not considered a cause for information risk?

When companies rely on external, independent computer service centers to handle all or part of their IT needs, it is referred to as:

Audit tests developed for an audit client are documented in a(n):

The management assertion related to valuation of transactions and account balances would include all of the following, except:

The IT environment plays a key role in how auditors conduct their work in all but which of the following areas:

Introduction to AIS

Foundational Concepts of the AIS

Fraud, Ethics, and Internal Control

Internal Controls and Risks in IT Systems

IT Governance

Enterprise Resource Planning ERP Systems

Revenue and Cash Collection Processes and Controls

Expenditures Processes and Controlspurchases

Expenditures Processes and Controlspayroll and Fixed Assets

Conversion Processes and Controls

Administrative Processes and Controls

Data and Databases

E-Commerce and E-Business

Filters

Exam 7: Auditing Information Technology-Based Processes

Which of the following statements regarding an audit program is true?

The chance that information used by decision makers may be inaccurate is referred to as:

Which of the following is not considered a cause for information risk?

When companies rely on external, independent computer service centers to handle all or part of their IT needs, it is referred to as:

Audit tests developed for an audit client are documented in a(n):

The management assertion related to valuation of transactions and account balances would include all of the following, except:

The IT environment plays a key role in how auditors conduct their work in all but which of the following areas:

Introduction to AIS

Foundational Concepts of the AIS

Fraud, Ethics, and Internal Control

Internal Controls and Risks in IT Systems

IT Governance

Enterprise Resource Planning ERP Systems

Revenue and Cash Collection Processes and Controls

Expenditures Processes and Controlspurchases

Expenditures Processes and Controlspayroll and Fixed Assets

Conversion Processes and Controls

Administrative Processes and Controls

Data and Databases

E-Commerce and E-Business

Filters