Question 1

Internal control system have limitations.These include all of the following except

Accepted Answer

A)  possibility of honest error 
B)  circumvention 
C)  management override 
D)  stability of systems 
A)  possibility of honest error 
B)  circumvention 
C)  management override 
D)  stability of systems

Question 2

Application controls apply to a wide range of exposures that threaten the integrity of all programs processed within the computer environment.

Accepted Answer

A) True 
 B)False

Question 3

Define the management assertions of: existence or occurrence,completeness,rights and obligations,valuation or allocation, presentation and disclosure.

Accepted Answer

The existence or occurrence assertion af

Question 4

When duties cannot be segregated,the most important internal control procedure is

Accepted Answer

A)  supervision 
B)  independent verification 
C)  access controls 
D)  accounting records 
A)  supervision 
B)  independent verification 
C)  access controls 
D)  accounting records

Question 5

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 6

What are the key points of the section 404 of the Sarbanes-Oxley Act?

Accepted Answer

Section 404 requires the management of p

Question 7

Typically,internal auditors perform all of the following tasks except

Accepted Answer

A)  IT audits 
B)  evaluation of operational efficiency 
C)  review of compliance with legal obligations 
D)  internal auditors perform all of the above tasks 
A)  IT audits 
B)  evaluation of operational efficiency 
C)  review of compliance with legal obligations 
D)  internal auditors perform all of the above tasks

Question 8

Section 404 requires management to make a statement identifying the control framework used to conduct their assessment of internal controls.Discuss the options in selecting a control framework.

Accepted Answer

The SEC has made specific reference to t

Question 9

What are the objectives of application controls?

Accepted Answer

The objectives of application

Question 10

The text describes six internal control activities.List four of them and provide a specific example of each one.

Accepted Answer

The answer of The text describes six internal control activities.List...

Question 11

Audit risk is the probability that the auditor will render an unqualified opinion on financial statements that are materially misstated.

Accepted Answer

A) True 
 B)False

Question 12

Which concept is not an integral part of an audit?

Accepted Answer

A)  evaluating internal controls 
B)  preparing financial statements 
C)  expressing an opinion 
D)  analyzing financial data 
A)  evaluating internal controls 
B)  preparing financial statements 
C)  expressing an opinion 
D)  analyzing financial data

Question 13

Section 302 requires the management of public companies to assess and formally report on the effectiveness of their organization's internal controls.

Accepted Answer

A) True 
 B)False

Question 14

Discuss the advisory services that external auditors are no longer permitted to render to audit clients under SOX legislation.

Accepted Answer

The Act addresses auditor independence b

Question 15

The fundamental difference between internal and external auditing is that

Accepted Answer

A)  internal auditors represent the interests of the organization and external auditors represent outsiders 
B)  internal auditors perform IT audits and external auditors perform financial statement audits 
C)  internal auditors focus on financial statement audits and external auditors focus on operational audits and financial statement audits 
D)  external auditors assist internal auditors but internal auditors cannot assist external auditors 
A)  internal auditors represent the interests of the organization and external auditors represent outsiders 
B)  internal auditors perform IT audits and external auditors perform financial statement audits 
C)  internal auditors focus on financial statement audits and external auditors focus on operational audits and financial statement audits 
D)  external auditors assist internal auditors but internal auditors cannot assist external auditors

Question 16

Both the SEC and the PCAOB require management to use the COBIT framework for assessing internal control adequacy.

Accepted Answer

A) True 
 B)False

Question 17

The most cost-effective type of internal control is

Accepted Answer

A)  preventive control 
B)  accounting control 
C)  detective control 
D)  corrective control 
A)  preventive control 
B)  accounting control 
C)  detective control 
D)  corrective control

Question 18

Tests of controls determine whether the database contents fairly reflect the organization's transactions.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following indicates a strong internal control environment?

Accepted Answer

A)  the internal audit group reports to the audit committee of the board of directors 
B)  there is no segregation of duties between organization functions 
C)  there are questions about the integrity of management 
D)  adverse business conditions exist in the industry 
A)  the internal audit group reports to the audit committee of the board of directors 
B)  there is no segregation of duties between organization functions 
C)  there are questions about the integrity of management 
D)  adverse business conditions exist in the industry

Question 20

Attestation services require all of the following except

Accepted Answer

A)  written assertions and a practitioner's written report 
B)  the engagement is designed to conduct risk assessment of the client's systems to verify their degree of SOX compliance 
C)  the formal establishment of measurements criteria 
D)  the engagement is limited to examination, review, and application of agreed-upon procedures 
A)  written assertions and a practitioner's written report 
B)  the engagement is designed to conduct risk assessment of the client's systems to verify their degree of SOX compliance 
C)  the formal establishment of measurements criteria 
D)  the engagement is limited to examination, review, and application of agreed-upon procedures

Internal control system have limitations.These include all of the following except

Application controls apply to a wide range of exposures that threaten the integrity of all programs processed within the computer environment.

Define the management assertions of: existence or occurrence,completeness,rights and obligations,valuation or allocation, presentation and disclosure.

When duties cannot be segregated,the most important internal control procedure is

All of the following are steps in an IT audit except

What are the key points of the section 404 of the Sarbanes-Oxley Act?

Typically,internal auditors perform all of the following tasks except

Section 404 requires management to make a statement identifying the control framework used to conduct their assessment of internal controls.Discuss the options in selecting a control framework.

What are the objectives of application controls?

The text describes six internal control activities.List four of them and provide a specific example of each one.

Audit risk is the probability that the auditor will render an unqualified opinion on financial statements that are materially misstated.

Which concept is not an integral part of an audit?

Section 302 requires the management of public companies to assess and formally report on the effectiveness of their organization's internal controls.

Discuss the advisory services that external auditors are no longer permitted to render to audit clients under SOX legislation.

The fundamental difference between internal and external auditing is that

Both the SEC and the PCAOB require management to use the COBIT framework for assessing internal control adequacy.

The most cost-effective type of internal control is

Tests of controls determine whether the database contents fairly reflect the organization's transactions.

Which of the following indicates a strong internal control environment?

Attestation services require all of the following except

Auditing IT Governance Controls

Security Part I: Auditing Operating Systems and Networks

IT Security Part II: Auditing Database Systems

Systems Development and Program Change Activities

Overview of Transaction Processing and Financial Reporting Systems

Computer-Assisted Audit Tools and Techniques

Data Structures and CAATTs for Data Extraction

Auditing the Revenue Cycle

Auditing the Expenditure Cycle

Business Ethics, Fraud, and Fraud Detection

Enterprise Resource Planning Systems

Filters

Exam 1: Auditing and Internal Control

Internal control system have limitations.These include all of the following except

Application controls apply to a wide range of exposures that threaten the integrity of all programs processed within the computer environment.

Define the management assertions of: existence or occurrence,completeness,rights and obligations,valuation or allocation, presentation and disclosure.

When duties cannot be segregated,the most important internal control procedure is

All of the following are steps in an IT audit except

What are the key points of the section 404 of the Sarbanes-Oxley Act?

Typically,internal auditors perform all of the following tasks except

Section 404 requires management to make a statement identifying the control framework used to conduct their assessment of internal controls.Discuss the options in selecting a control framework.

What are the objectives of application controls?

The text describes six internal control activities.List four of them and provide a specific example of each one.

Audit risk is the probability that the auditor will render an unqualified opinion on financial statements that are materially misstated.

Which concept is not an integral part of an audit?

Section 302 requires the management of public companies to assess and formally report on the effectiveness of their organization's internal controls.

Discuss the advisory services that external auditors are no longer permitted to render to audit clients under SOX legislation.

The fundamental difference between internal and external auditing is that

Both the SEC and the PCAOB require management to use the COBIT framework for assessing internal control adequacy.

The most cost-effective type of internal control is

Tests of controls determine whether the database contents fairly reflect the organization's transactions.

Which of the following indicates a strong internal control environment?

Attestation services require all of the following except

Auditing IT Governance Controls

Security Part I: Auditing Operating Systems and Networks

IT Security Part II: Auditing Database Systems

Systems Development and Program Change Activities

Overview of Transaction Processing and Financial Reporting Systems

Computer-Assisted Audit Tools and Techniques

Data Structures and CAATTs for Data Extraction

Auditing the Revenue Cycle

Auditing the Expenditure Cycle

Business Ethics, Fraud, and Fraud Detection

Enterprise Resource Planning Systems

Filters