Question 1

Each of the following automated application controls are designed to ensure that the input of individual transactions and data is accurate except for

Accepted Answer

A) Check digits. 
B) Valid sign tests. 
C) Sequence tests. 
D) Limit and reasonableness tests. 
A) Check digits. 
B) Valid sign tests. 
C) Sequence tests. 
D) Limit and reasonableness tests. C

Question 2

Which of the following is not an example of a general control?

Accepted Answer

A) The organization's use of the systems development life cycle when implementing or modifying computerized processing systems. 
B) The organization's use of check digits to ensure accurate input of transaction data. 
C) Periodic and preventative maintenance performed on the computer and related equipment. 
D) The existence of appropriate separation of duties within the computer department. 
A) The organization's use of the systems development life cycle when implementing or modifying computerized processing systems. 
B) The organization's use of check digits to ensure accurate input of transaction data. 
C) Periodic and preventative maintenance performed on the computer and related equipment. 
D) The existence of appropriate separation of duties within the computer department. B

Question 3

Computer operations controls are typically implemented for files and data used in processing.The major objectives of these controls include each of the following except for

Accepted Answer

A) Ensure that appropriate files are used in computerized processing. 
B) Ensure restricted access to the computing environment. 
C) Ensure that files are appropriately secured and protected from loss. 
D) Ensure that files can be reconstructed from earlier versions of information used in processing. 
A) Ensure that appropriate files are used in computerized processing. 
B) Ensure restricted access to the computing environment. 
C) Ensure that files are appropriately secured and protected from loss. 
D) Ensure that files can be reconstructed from earlier versions of information used in processing. B

Question 4

Audit teams would most likely introduce test data into a computerized payroll system to test internal controls related to the

Accepted Answer

A) Existence of unclaimed payroll checks held by supervisors. 
B) Early cashing of payroll checks by employees. 
C) Discovery of invalid employee identification numbers. 
D) Proper approval of overtime by supervisors. 
A) Existence of unclaimed payroll checks held by supervisors. 
B) Early cashing of payroll checks by employees. 
C) Discovery of invalid employee identification numbers. 
D) Proper approval of overtime by supervisors.

Question 5

Match between columns
                        Premises: Ensuring that emergency requests are appropriately documented and properly authorized.
Separating the duties of systems programmers,computer operators,and data librarians
Requiring the use of passwords to access computer programs and files.
Maintaining backup copies of files at safe,remote locations.
Using the Systems Development Life Cycle for testing and validation of new programs.
6___.Involving users in the design of programs and selection of prepackaged software.
Using external labels to identify files and programs.
Requiring program modifications to be tested and implemented by appropriate personnel.

Accepted Answer

The Answer of Access to programs and data controls and is...

Question 6

Which of the following is an example of a computer operations control?

Accepted Answer

A) Control totals. 
B) Balancing input to output. 
C) File backup and retention. 
D) Transaction logs. 
A) Control totals. 
B) Balancing input to output. 
C) File backup and retention. 
D) Transaction logs.

Question 7

The purpose of test data is to determine whether

Accepted Answer

A) The audit team's test data are consistent with the client's normal transactions. 
B) Controls operate as described in responses to internal control questionnaire items and program flowcharts. 
C) Every possible error is prevented or detected by the client's computer controls. 
D) All possible combinations of valid data are correctly processed. 
A) The audit team's test data are consistent with the client's normal transactions. 
B) Controls operate as described in responses to internal control questionnaire items and program flowcharts. 
C) Every possible error is prevented or detected by the client's computer controls. 
D) All possible combinations of valid data are correctly processed.

Question 8

When programs or files can be accessed from terminals,users should be required to enter a(n)

Accepted Answer

A) Parity check. 
B) Personal identification code. 
C) Self diagnosis test. 
D) Echo check. 
A) Parity check. 
B) Personal identification code. 
C) Self diagnosis test. 
D) Echo check.

Question 9

Which of the following is not an appropriate statement with regard to computer control activities?

Accepted Answer

A) The duties of application programming,computer operation,and control of data files should be separated. 
B) Computer operators should maintain control of all software programs. 
C) Specific passwords should be required to access online files. 
D) Computer programmers should be periodically rotated across different applications. 
A) The duties of application programming,computer operation,and control of data files should be separated. 
B) Computer operators should maintain control of all software programs. 
C) Specific passwords should be required to access online files. 
D) Computer programmers should be periodically rotated across different applications.

Question 10

As part of assessing the risk of material misstatement,the audit team must assess the control risk in the computerized processing system.Initially,the audit team must identify the overall processing scope of the system(s),which would include each of the following considerations except

Accepted Answer

A) The types of transactions that are processed through the system. 
B) The specific control procedures that have been implemented by the client to prevent or detect misstatements that could occur based on the audit team's analysis. 
C) The programs and files that are accessed by the system in processing transactions. 
D) The type of output that is created as a result of processing transactions through the system. 
A) The types of transactions that are processed through the system. 
B) The specific control procedures that have been implemented by the client to prevent or detect misstatements that could occur based on the audit team's analysis. 
C) The programs and files that are accessed by the system in processing transactions. 
D) The type of output that is created as a result of processing transactions through the system.

Question 11

Which of the following controls most likely would ensure that an organization can reconstruct its financial records?

Accepted Answer

A) Hardware controls are built into the computer by the computer manufacturer. 
B) Backup files are stored in a location separate from original copies. 
C) Personnel who are independent of data input perform parallel simulations. 
D) System flowcharts provide accurate descriptions of computer operations. 
A) Hardware controls are built into the computer by the computer manufacturer. 
B) Backup files are stored in a location separate from original copies. 
C) Personnel who are independent of data input perform parallel simulations. 
D) System flowcharts provide accurate descriptions of computer operations.

Question 12

Which of the following input controls would be least likely to identify the failure of an employee to input a transaction for which documentary evidence has been prepared?

Accepted Answer

A) Batch totals. 
B) Hash totals. 
C) Missing data tests. 
D) Sequence tests. 
A) Batch totals. 
B) Hash totals. 
C) Missing data tests. 
D) Sequence tests.

Question 13

Which of the following would most likely be a weakness in the internal control of a client that utilizes portable computing devices rather than a larger computer system?

Accepted Answer

A) Employee collusion possibilities are increased because portable computing devices from one vendor can process the programs of a system from different vendors. 
B) Computer operators may be able to remove hardware and software components and modify them at an off-site location. 
C) Programming errors result in all similar transactions being processed incorrectly because those transactions are processed under the same conditions. 
D) Certain transactions may be automatically initiated by the computerized processing system and management's authorization of these transactions may be implicit in its acceptance of the system design. 
A) Employee collusion possibilities are increased because portable computing devices from one vendor can process the programs of a system from different vendors. 
B) Computer operators may be able to remove hardware and software components and modify them at an off-site location. 
C) Programming errors result in all similar transactions being processed incorrectly because those transactions are processed under the same conditions. 
D) Certain transactions may be automatically initiated by the computerized processing system and management's authorization of these transactions may be implicit in its acceptance of the system design.

Question 14

The effectiveness of general controls is an important consideration for audit teams when assessing control risk on an audit.Which management assertions are primarily affected by general controls?

Accepted Answer

A) Completeness and Accuracy. 
B) Occurrence and Rights and Obligations. 
C) Accuracy and Occurrence. 
D) Completeness and Occurrence. 
A) Completeness and Accuracy. 
B) Occurrence and Rights and Obligations. 
C) Accuracy and Occurrence. 
D) Completeness and Occurrence.

Question 15

Which of the following control procedures most likely could prevent computer personnel from modifying programs to bypass computer controls?

Accepted Answer

A) Periodic management review of computer utilization reports and systems documentation. 
B) Separation of duties for computer programming and computer operations. 
C) Participation of user department personnel in designing and approving new systems. 
D) Physical security of computer facilities in limiting access to computer equipment. 
A) Periodic management review of computer utilization reports and systems documentation. 
B) Separation of duties for computer programming and computer operations. 
C) Participation of user department personnel in designing and approving new systems. 
D) Physical security of computer facilities in limiting access to computer equipment.

Question 16

Which of the following is not true with respect to the test data approach for evaluating computer controls?

Accepted Answer

A) The test data are created for a separate entity and are run simultaneously with the client's actual data. 
B) Only one of each type of error transaction needs to be included in the test data. 
C) The manual results of processing the test data are compared to the results of processing these data through the client's computerized processing system. 
D) Audit teams consider potential errors and conditions of interest in generating the test data. 
A) The test data are created for a separate entity and are run simultaneously with the client's actual data. 
B) Only one of each type of error transaction needs to be included in the test data. 
C) The manual results of processing the test data are compared to the results of processing these data through the client's computerized processing system. 
D) Audit teams consider potential errors and conditions of interest in generating the test data.

Question 17

Which of the following statements best describes the impact on an audit when a client uses computerized processing of transactions?

Accepted Answer

A) The objective of the audit examination focuses on detection of fraud and theft through the computer. 
B) The type of substantive procedures performed by the audit team change because of the use of computerized processing. 
C) The effectiveness of computer controls implemented by the client over its computerized processing may need to be evaluated by audit teams. 
D) Different independence standards are introduced for audit teams when clients utilize computerized processing. 
A) The objective of the audit examination focuses on detection of fraud and theft through the computer. 
B) The type of substantive procedures performed by the audit team change because of the use of computerized processing. 
C) The effectiveness of computer controls implemented by the client over its computerized processing may need to be evaluated by audit teams. 
D) Different independence standards are introduced for audit teams when clients utilize computerized processing.

Question 18

When a real-time computerized processing system is in use,the computer controls can be strengthened by

Accepted Answer

A) Providing for the separation of duties between data input and error listing operations. 
B) Using a systems development life cycle for authorization,user involvement,and testing of program modifications. 
C) Preparing batch totals to provide assurance that file updates are made for the entire group of transactions. 
D) Performing a validity check of an identification number before a user can obtain access to the computer files. 
A) Providing for the separation of duties between data input and error listing operations. 
B) Using a systems development life cycle for authorization,user involvement,and testing of program modifications. 
C) Preparing batch totals to provide assurance that file updates are made for the entire group of transactions. 
D) Performing a validity check of an identification number before a user can obtain access to the computer files.

Question 19

Why is it important that the organization establish systems development and documentation standards?

Accepted Answer

A) These standards enable the organization to understand the programming logic underlying recently-developed programs. 
B) These standards ensure that the program controls and documentation included in recently-developed programs is adequate. 
C) The absence of these standards would constitute a material weakness in internal control. 
D) These standards ensure the appropriate separation of duties of computer personnel. 
A) These standards enable the organization to understand the programming logic underlying recently-developed programs. 
B) These standards ensure that the program controls and documentation included in recently-developed programs is adequate. 
C) The absence of these standards would constitute a material weakness in internal control. 
D) These standards ensure the appropriate separation of duties of computer personnel.

Question 20

Which of the following is not a control included as part of the systems development life cycle?

Accepted Answer

A) Ensuring that all software acquisition and program development efforts are consistent with the organization's needs and objectives. 
B) Testing and validating new programs and developing proper implementation plans. 
C) Requiring that all programming efforts take place under the control of the requesting user department. 
D) Ensuring that data are converted completely and accurately for use in the new systems. 
A) Ensuring that all software acquisition and program development efforts are consistent with the organization's needs and objectives. 
B) Testing and validating new programs and developing proper implementation plans. 
C) Requiring that all programming efforts take place under the control of the requesting user department. 
D) Ensuring that data are converted completely and accurately for use in the new systems.

Each of the following automated application controls are designed to ensure that the input of individual transactions and data is accurate except for

Which of the following is not an example of a general control?

Computer operations controls are typically implemented for files and data used in processing.The major objectives of these controls include each of the following except for

Audit teams would most likely introduce test data into a computerized payroll system to test internal controls related to the

Which of the following is an example of a computer operations control?

The purpose of test data is to determine whether

When programs or files can be accessed from terminals,users should be required to enter a(n)

Which of the following is not an appropriate statement with regard to computer control activities?

As part of assessing the risk of material misstatement,the audit team must assess the control risk in the computerized processing system.Initially,the audit team must identify the overall processing scope of the system(s),which would include each of the following considerations except

Which of the following controls most likely would ensure that an organization can reconstruct its financial records?

Which of the following input controls would be least likely to identify the failure of an employee to input a transaction for which documentary evidence has been prepared?

Which of the following would most likely be a weakness in the internal control of a client that utilizes portable computing devices rather than a larger computer system?

The effectiveness of general controls is an important consideration for audit teams when assessing control risk on an audit.Which management assertions are primarily affected by general controls?

Which of the following control procedures most likely could prevent computer personnel from modifying programs to bypass computer controls?

Which of the following is not true with respect to the test data approach for evaluating computer controls?

Which of the following statements best describes the impact on an audit when a client uses computerized processing of transactions?

When a real-time computerized processing system is in use,the computer controls can be strengthened by

Why is it important that the organization establish systems development and documentation standards?

Which of the following is not a control included as part of the systems development life cycle?

Auditing and Assurance Services

Professional Standards

Engagement Planning

Management Fraud and Audit Risk

Risk Assessment: Internal Control Evaluation

Employee Fraud and the Audit of Cash

Revenue and Collection Cycle

Acquisition and Expenditure Cycle

Production Cycle

Finance and Investment Cycle

Completing the Audit

Reports on Audited Financial Statements

Other Public Accounting Services

Professional Ethics

Legal Liability

Internal Audits, Governmental Audits, and Fraud Examinations

Overview of Sampling

Attributes Sampling

Variables Sampling

Filters

Exam 20: Auditing and Information Technology

Each of the following automated application controls are designed to ensure that the input of individual transactions and data is accurate except for

Which of the following is not an example of a general control?

Computer operations controls are typically implemented for files and data used in processing.The major objectives of these controls include each of the following except for

Audit teams would most likely introduce test data into a computerized payroll system to test internal controls related to the

Which of the following is an example of a computer operations control?

The purpose of test data is to determine whether

When programs or files can be accessed from terminals,users should be required to enter a(n)

Which of the following is not an appropriate statement with regard to computer control activities?

As part of assessing the risk of material misstatement,the audit team must assess the control risk in the computerized processing system.Initially,the audit team must identify the overall processing scope of the system(s),which would include each of the following considerations except

Which of the following controls most likely would ensure that an organization can reconstruct its financial records?

Which of the following input controls would be least likely to identify the failure of an employee to input a transaction for which documentary evidence has been prepared?

Which of the following would most likely be a weakness in the internal control of a client that utilizes portable computing devices rather than a larger computer system?

The effectiveness of general controls is an important consideration for audit teams when assessing control risk on an audit.Which management assertions are primarily affected by general controls?

Which of the following control procedures most likely could prevent computer personnel from modifying programs to bypass computer controls?

Which of the following is not true with respect to the test data approach for evaluating computer controls?

Which of the following statements best describes the impact on an audit when a client uses computerized processing of transactions?

When a real-time computerized processing system is in use,the computer controls can be strengthened by

Why is it important that the organization establish systems development and documentation standards?

Which of the following is not a control included as part of the systems development life cycle?

Auditing and Assurance Services

Professional Standards

Engagement Planning

Management Fraud and Audit Risk

Risk Assessment: Internal Control Evaluation

Employee Fraud and the Audit of Cash

Revenue and Collection Cycle

Acquisition and Expenditure Cycle

Production Cycle

Finance and Investment Cycle

Completing the Audit

Reports on Audited Financial Statements

Other Public Accounting Services

Professional Ethics

Legal Liability

Internal Audits, Governmental Audits, and Fraud Examinations

Overview of Sampling

Attributes Sampling

Variables Sampling

Filters