Exam 12: Implications of Information Technology for the Audit Process

Controls which are designed to assure that the information processed by the computer is authorized,complete,and accurate are called:

When purchasing software or developing in-house software:

Which of the following is a correct statement regarding general controls?

Discuss the advantages and benefits of using generalized audit software.

An example of a physical control is:

Auditors usually obtain information about general and application controls through:

Auditors typically obtain information about general and application controls through all of the following ways except for:

Processing controls include the following tests: Validation Sequence Data Reasonableness Completeness Describe what each control is designed to do:

Computers process information consistently for all transactions.This creates a risk that:

Controls that are designed for each software application and are intended to help a company satisfy the transaction-related audit objectives are:

In comparing (1)the adequacy of the hardware controls in the system with (2)the organization's methods of handling the errors that the computer identifies,the independent auditor is:

Misstatements in the financial statement may not be detected with the increased use of IT due to: I.the loss of a visible audit trail. II.reduced human involvement.

General controls may include firewalls which are used to protect from:

The most important output control is:

Which of the following describes the process of implementing a new system in one part of the organization,while other locations continue to use the current system?

The auditor's objective in determining whether the client's automated controls can correctly handle valid and invalid transactions as they arise is accomplished through the:

Parallel testing is more expensive than pilot testing.

When a client uses desktops and networked servers for the accounting functions,there is a risk of computer viruses.

One category of general controls is physical and online access controls.Describe the control and give at two examples of implementation of the control.

A large portion of errors in IT systems result from data entry errors.