Question 1

Which of the following is not an application control?

Accepted Answer

A)  Preprocessing authorization of sales transactions 
B)  Reasonableness test for unit selling price of sale 
C)  Post-processing review of sales transactions by the sales department 
D)  Logging in to the company's information systems via a password 
A)  Preprocessing authorization of sales transactions 
B)  Reasonableness test for unit selling price of sale 
C)  Post-processing review of sales transactions by the sales department 
D)  Logging in to the company's information systems via a password

Question 2

Firewalls can protect company data and software programs.

Accepted Answer

A) True 
 B)False

Question 3

When the auditor is obtaining an understanding of the independent computer service center's internal controls the auditor should:

Accepted Answer

A)  use the same criteria used to evaluate the client's internal controls. 
B)  use different criteria because the service center resides outside the company. 
C)  use the same criteria used to evaluate the client's internal controls but omit tests of transactions. 
D)  use different criteria for the service center by including substantive tests of balances. 
A)  use the same criteria used to evaluate the client's internal controls. 
B)  use different criteria because the service center resides outside the company. 
C)  use the same criteria used to evaluate the client's internal controls but omit tests of transactions. 
D)  use different criteria for the service center by including substantive tests of balances.

Question 4

The effectiveness of automated controls depends solely on the competence of the personnel performing the controls.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is not a benefit of using IT-based controls?

Accepted Answer

A)  Ability to process large volumes of transactions 
B)  Ability to replace manual controls with computer-based controls 
C)  Reduction in misstatements due to consistent processing of transactions 
D)  Reduction in internal control evaluation in setting control risk 
A)  Ability to process large volumes of transactions 
B)  Ability to replace manual controls with computer-based controls 
C)  Reduction in misstatements due to consistent processing of transactions 
D)  Reduction in internal control evaluation in setting control risk

Question 6

Define control for general controls and application controls.Also list the categories of controls included under general controls and application controls.

Accepted Answer

General controls are those that relate t

Which of the following is not an application control?

Firewalls can protect company data and software programs.

When the auditor is obtaining an understanding of the independent computer service center's internal controls the auditor should:

The effectiveness of automated controls depends solely on the competence of the personnel performing the controls.

Which of the following is not a benefit of using IT-based controls?

Define control for general controls and application controls.Also list the categories of controls included under general controls and application controls.

The Assurance Services Market

The Audit Standards Setting Process

Audit Reports

Legal Liability Considerations for Auditors

Ethics and the Audit Profession

Audit Responsibilities and Objectives

Nature and Type of Audit Evidence

Audit Planning

Considering Materiality and Audit Risk

Considering Internal Control

Considering the Risk of Fraud

Developing the Overall Audit Plan and Audit Program

Audit of the Sales and Collection Cycle: Tests of Controls and Substantive Tests of Transactions

Audit Sampling for Tests of Controls and Substantive Tests of Transactions

Completing the Tests in the Sales and Collection Cycle: Accounts Receivable

Audit Sampling for Tests of Details of Balances

Audit of the Acquisition and Payment Cycle: Tests of Controls, Substantive Tests of Transactions, and Accounts Payable

Completing the Tests in the Acquisition and Payment Cycle: Verification of Selected Accounts

Audit of the Inventory and Warehousing Cycle

Audit of the Payroll and Personnel Cycle

Audit of the Capital Acquisition and Repayment Cycle

Audit of Cash and Financial Instruments

Audit Completion

Other Assurance Services

Internal and Governmental Financial Auditing and Operational Auditing

Filters

Exam 12: Implications of Information Technology for the Audit Process

Which of the following is not an application control?

Firewalls can protect company data and software programs.

When the auditor is obtaining an understanding of the independent computer service center's internal controls the auditor should:

The effectiveness of automated controls depends solely on the competence of the personnel performing the controls.

Which of the following is not a benefit of using IT-based controls?

Define control for general controls and application controls.Also list the categories of controls included under general controls and application controls.

The Assurance Services Market

The Audit Standards Setting Process

Audit Reports

Legal Liability Considerations for Auditors

Ethics and the Audit Profession

Audit Responsibilities and Objectives

Nature and Type of Audit Evidence

Audit Planning

Considering Materiality and Audit Risk

Considering Internal Control

Considering the Risk of Fraud

Developing the Overall Audit Plan and Audit Program

Audit of the Sales and Collection Cycle: Tests of Controls and Substantive Tests of Transactions

Audit Sampling for Tests of Controls and Substantive Tests of Transactions

Completing the Tests in the Sales and Collection Cycle: Accounts Receivable

Audit Sampling for Tests of Details of Balances

Audit of the Acquisition and Payment Cycle: Tests of Controls, Substantive Tests of Transactions, and Accounts Payable

Completing the Tests in the Acquisition and Payment Cycle: Verification of Selected Accounts

Audit of the Inventory and Warehousing Cycle

Audit of the Payroll and Personnel Cycle

Audit of the Capital Acquisition and Repayment Cycle

Audit of Cash and Financial Instruments

Audit Completion

Other Assurance Services

Internal and Governmental Financial Auditing and Operational Auditing

Filters