Question 1

The following are examples of specific assets except

Accepted Answer

A)  application maintenance 
B)  data warehousing 
C)  highly skilled employees 
D)  server maintenance 
A)  application maintenance 
B)  data warehousing 
C)  highly skilled employees 
D)  server maintenance

Question 2

Discuss the key features of Section 404 of the Sarbanes-Oxley Act.

Accepted Answer

Section 404 requires the management of p

Question 3

Which of the following is true?

Accepted Answer

A)  Core competency theory argues that an organization should outsource specific core assets. 
B)  Core competency theory argues that an organization should focus exclusively on its core business competencies 
C)  Core competency theory argues that an organization should not outsource specific commodity assets. 
D)  Core competency theory argues that an organization should retain certain specific non−core assets in-house. 
A)  Core competency theory argues that an organization should outsource specific core assets. 
B)  Core competency theory argues that an organization should focus exclusively on its core business competencies 
C)  Core competency theory argues that an organization should not outsource specific commodity assets. 
D)  Core competency theory argues that an organization should retain certain specific non−core assets in-house.

Question 4

Substantive testing techniques provide information about the accuracy and completeness of an application's processes.

Accepted Answer

A) True 
 B)False

Question 5

Computer fraud is easiest at the data collection stage.Why?

Accepted Answer

Computer fraud is easiest at the data co

Question 6

Discuss the key features of Section 302 of the Sarbanes-Oxley Act.

Accepted Answer

Section 302 requires corporate managemen

Question 7

Define and contrast attestation services and assurance services.

Accepted Answer

Attest services are engagements in which

Question 8

Distinguish between errors and irregularities.Which do you think concern the auditors the most?

Accepted Answer

Errors are unintentional mistakes;while

Question 9

Substantive tests include

Accepted Answer

A)  examining the safety deposit box for stock certificates 
B)  reviewing systems documentation 
C)  completing questionnaires 
D)  observation 
A)  examining the safety deposit box for stock certificates 
B)  reviewing systems documentation 
C)  completing questionnaires 
D)  observation

Question 10

Explain how IT outsourcing can lead to loss of strategic advantage.

Accepted Answer

Alignment between IT strategy and busine

Question 11

What are the components of audit risk?

Accepted Answer

Inherent risk is associated with the uni

Question 12

What are the objectives of application controls?

Accepted Answer

The objectives of application

Question 13

A qualified opinion on management's assessment of internal controls over the financial reporting system necessitates a qualified opinion on the financial statements?

Accepted Answer

A) True 
 B)False

Question 14

Supervision in a computerized environment is more complex than in a manual environment for all of the following reasons except

Accepted Answer

A)  rapid turnover of systems professionals complicates management's task of assessing the competence and honesty of prospective employees 
B)  many systems professionals have direct and unrestricted access to the organization's programs and data 
C)  rapid changes in technology make staffing the systems environment challenging 
D)  systems professionals and their supervisors work at the same physical location 
A)  rapid turnover of systems professionals complicates management's task of assessing the competence and honesty of prospective employees 
B)  many systems professionals have direct and unrestricted access to the organization's programs and data 
C)  rapid changes in technology make staffing the systems environment challenging 
D)  systems professionals and their supervisors work at the same physical location

Question 15

The same internal control objectives apply to manual and computer-based information systems.

Accepted Answer

A) True 
 B)False

Question 16

All of the following are steps in an IT audit except

Accepted Answer

A)  substantive testing 
B)  tests of controls 
C)  post-audit testing 
D)  audit planning 
A)  substantive testing 
B)  tests of controls 
C)  post-audit testing 
D)  audit planning

Question 17

All of the following are issues of computer security except

Accepted Answer

A)  releasing incorrect data to authorized individuals 
B)  permitting computer operators unlimited access to the computer room 
C)  permitting access to data by unauthorized individuals 
D)  providing correct data to unauthorized individuals 
A)  releasing incorrect data to authorized individuals 
B)  permitting computer operators unlimited access to the computer room 
C)  permitting access to data by unauthorized individuals 
D)  providing correct data to unauthorized individuals

Question 18

The most common access point for perpetrating computer fraud is at the data collection stage.

Accepted Answer

A) True 
 B)False

Question 19

Distinguish between inherent risk and control risk.How do internal controls and detection risk fit in?

Accepted Answer

Inherent risk is associated with the uni

Question 20

Tests of controls include

Accepted Answer

A)  confirming accounts receivable 
B)  counting inventory 
C)  completing questionnaires 
D)  counting cash 
A)  confirming accounts receivable 
B)  counting inventory 
C)  completing questionnaires 
D)  counting cash

The following are examples of specific assets except

Discuss the key features of Section 404 of the Sarbanes-Oxley Act.

Which of the following is true?

Substantive testing techniques provide information about the accuracy and completeness of an application's processes.

Computer fraud is easiest at the data collection stage.Why?

Discuss the key features of Section 302 of the Sarbanes-Oxley Act.

Define and contrast attestation services and assurance services.

Distinguish between errors and irregularities.Which do you think concern the auditors the most?

Substantive tests include

Explain how IT outsourcing can lead to loss of strategic advantage.

What are the components of audit risk?

What are the objectives of application controls?

A qualified opinion on management's assessment of internal controls over the financial reporting system necessitates a qualified opinion on the financial statements?

Supervision in a computerized environment is more complex than in a manual environment for all of the following reasons except

The same internal control objectives apply to manual and computer-based information systems.

All of the following are steps in an IT audit except

All of the following are issues of computer security except

The most common access point for perpetrating computer fraud is at the data collection stage.

Distinguish between inherent risk and control risk.How do internal controls and detection risk fit in?

Tests of controls include

The Information System: An Accountant’s Perspective

Introduction to Transaction Processing

Ethics, Fraud, and Internal Control

The Revenue Cycle

The Expenditure Cycle Part I: Purchases and Cash Disbursements Procedures

The Expenditure Cycle Part II: Payroll Processing and Fixed Asset Procedures

The Conversion Cycle

General Ledger, Financial Reporting, and Management Reporting Systems

Database Management Systems

The REA Approach to Business Process Modeling

Enterprise Resource Planning Systems

Electronic Commerce Systems

Managing the Systems Development Life Cycle

Construct, Deliver, and Maintain Systems Projects

IT Controls : Security and Access

IT Controls : Systems Development Program Changes and Application Controls

Filters

Exam 15: IT Controls : Sarbanes-Oxley and IT Governance

The following are examples of specific assets except

Discuss the key features of Section 404 of the Sarbanes-Oxley Act.

Which of the following is true?

Substantive testing techniques provide information about the accuracy and completeness of an application's processes.

Computer fraud is easiest at the data collection stage.Why?

Discuss the key features of Section 302 of the Sarbanes-Oxley Act.

Define and contrast attestation services and assurance services.

Distinguish between errors and irregularities.Which do you think concern the auditors the most?

Substantive tests include

Explain how IT outsourcing can lead to loss of strategic advantage.

What are the components of audit risk?

What are the objectives of application controls?

A qualified opinion on management's assessment of internal controls over the financial reporting system necessitates a qualified opinion on the financial statements?

Supervision in a computerized environment is more complex than in a manual environment for all of the following reasons except

The same internal control objectives apply to manual and computer-based information systems.

All of the following are steps in an IT audit except

All of the following are issues of computer security except

The most common access point for perpetrating computer fraud is at the data collection stage.

Distinguish between inherent risk and control risk.How do internal controls and detection risk fit in?

Tests of controls include

The Information System: An Accountant’s Perspective

Introduction to Transaction Processing

Ethics, Fraud, and Internal Control

The Revenue Cycle

The Expenditure Cycle Part I: Purchases and Cash Disbursements Procedures

The Expenditure Cycle Part II: Payroll Processing and Fixed Asset Procedures

The Conversion Cycle

General Ledger, Financial Reporting, and Management Reporting Systems

Database Management Systems

The REA Approach to Business Process Modeling

Enterprise Resource Planning Systems

Electronic Commerce Systems

Managing the Systems Development Life Cycle

Construct, Deliver, and Maintain Systems Projects

IT Controls : Security and Access

IT Controls : Systems Development Program Changes and Application Controls

Filters