Exam 8: Consideration of Internal Control in an Information Technology Environment

Consider the following computer applications: (1)At a catalog sales firm,as phone orders are entered into their computer,both inventory and credit are immediately checked. (2)A manufacturer's computer sends the coming week's production schedule and parts orders to a supplier's computer. Which statement below is true for these applications?

General controls over IT systems are typically tested using:

Passwords are designed primarily to prevent:

An auditor may decide not to perform tests of controls related to the control activities within the computer portion of the client's internal control.Which of the following would not be a valid reason for choosing to omit such test?

Auditing by testing the input and output of a computer system instead of the computer program itself will:

Encryption protection is least likely to be used in which of the following situations?

In the weekly computer run to prepare payroll checks,a check was printed for an employee who had been terminated the previous week.Which of the following controls,if properly utilized,would have been most effective in preventing the error or ensuing its prompt detection?

The auditors are least likely to "audit around the computer" when:

A bank wants to reject erroneous account numbers to avoid invalid input.Management of the bank was told that there is a method that involves adding another number at the end of the account numbers and subjecting the other numbers to an algorithm to compare with the extra numbers.What technique is this?

Which of the following is a password security problem?

Generalized audit software is effective for substantive procedures,but not for tests of controls.

When a client's accounts payable computer system was relocated,the administrator provided support through an Internet connection to a server.Subsequently,the administrator left the company.No changes were made to the accounts payable system at that time.Which of the following situations represents the greatest security risk?

A limit test is a general computer control built into the software.

In a client/server environment,the "client" is most likely to be the:

Which of the following is likely to be of least importance to an auditor in considering the internal control in a company with computer processing?

A company's labor distribution report requires extensive corrections each month because of labor hours charged to inactive jobs.Which of the following data processing input controls appears to be missing?

Which of the following is an example of general computer control?

Which of the following constitutes a weakness in the internal control of a computer system?

Which of the following is not a problem associated with the use of test data for computer-audit purposes?

An example of an access control is a: