Exam 10: The impact of information technology on the audit process

One disadvantage of IT systems is the potential elimination of the control provided by division of duties of independent persons normally present in manual systems.

Which of the following tests CANNOT be performed with the auditor's computer program?

An auditor's investigation of a company's IT control procedures has disclosed the following four circumstances.Indicate which circumstance constitutes a weakness in internal control.

Controls which are built in by the manufacturer to detect equipment failure are called:

Which of the following is NOT an application control?

Auditing a small client in an IT environment poses some particular challenges for the auditor.Identify and describe.

Why does a well-controlled IT system offer greater potential for reducing misstatements?

The accumulation of source documents and records that allows the organisation to trace accounting entries back to their initiation is the:

An advantage of generalised audit software (GAS)is the ability to access and test client data independently.

Assume you are using generalised audit software (GAS)during your audit of accounts receivable.Discuss four kinds of tests or audit procedures you can perform with the GAS if the client's data are in machine-readable form.

What type of analyst coordinates development and changes to IT systems?

One key to a backup and contingency plan is to make sure that all critical copies of software and data files are backed up and stored off-premises.

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

Controls which apply to the processing of individual transactions are called:

If a control total were to be computed on each of the following data items, which would BEST be identified as a hash total for a payroll IT application?

A site is allowed to retain the Webtrust seal if the auditor monitors compliance at least every:

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

Which type of control is designed to assure that the information processed by computer is authorised, complete, and accurate?

Auditing through the computer is justified when general controls are acceptable.

How is internal control enhanced by information technologies?