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

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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?

(Multiple Choice)

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Question 21

Internal control is ineffective when computer department personnel:

(Multiple Choice)

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Question 22

Internal file labels are designed to prevent errors by programmers.

(True/False)

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Question 23

When erroneous data are detected by computer program controls,such data may be excluded from processing and printed on an exception report.The exception report should most probably be reviewed and followed up on by the:

(Multiple Choice)

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Question 24

A control feature in a computer system requires the central processing unit (CPU)to send signals to the printer to activate the print mechanism for each character.The print mechanism,just prior to printing,sends a signal back to the CPU verifying that the proper print position has been activated.This type of data transmission is referred to as:

(Multiple Choice)

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Question 25

The capability for computers to communicate with physically remote terminals is an important feature in the design of modern business information systems.Which of the following risks associated with the use of telecommunications systems is minimized through the use of a password control system?

(Multiple Choice)

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Question 26

For auxiliary storage when the computer is operating,personal computers use hard disk drives.

(True/False)

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Question 27

Which of the following personnel is responsible for determining the computer processing needs of the various users?

(Multiple Choice)

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Question 28

Data encryption is an example of data transmission control.

(True/False)

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Question 29

Which of the following would the auditors consider to be a weakness in an IT system?

(Multiple Choice)

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Question 30

Which of the following is least likely to be a general control over computer activities?

(Multiple Choice)

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Question 31

Which of the following is most likely to include user group development and execution of certain computer applications?

(Multiple Choice)

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Question 32

Most advanced computer systems do not have audit trails.

(True/False)

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Question 33

Generalized audit software may be used for substantive tests or for tests of controls.

(True/False)

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Question 34

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?

(Multiple Choice)

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Question 35

A problem for a CPA associated with advanced IT systems is that:

(Multiple Choice)

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Question 36

The best method of achieving internal control over advanced IT systems is through the use of:

(Multiple Choice)

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Question 37

The operating system is an example of system software.

(True/False)

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Question 38

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?

(Multiple Choice)

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Question 39

Passwords for microcomputer software programs are designed to prevent:

(Multiple Choice)

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Question 40

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

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?

Internal control is ineffective when computer department personnel:

Internal file labels are designed to prevent errors by programmers.

When erroneous data are detected by computer program controls,such data may be excluded from processing and printed on an exception report.The exception report should most probably be reviewed and followed up on by the:

The capability for computers to communicate with physically remote terminals is an important feature in the design of modern business information systems.Which of the following risks associated with the use of telecommunications systems is minimized through the use of a password control system?

For auxiliary storage when the computer is operating,personal computers use hard disk drives.

Which of the following personnel is responsible for determining the computer processing needs of the various users?

Data encryption is an example of data transmission control.

Which of the following would the auditors consider to be a weakness in an IT system?

Which of the following is least likely to be a general control over computer activities?

Which of the following is most likely to include user group development and execution of certain computer applications?

Most advanced computer systems do not have audit trails.

Generalized audit software may be used for substantive tests or for tests of controls.

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?

A problem for a CPA associated with advanced IT systems is that:

The best method of achieving internal control over advanced IT systems is through the use of:

The operating system is an example of system software.

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?

Passwords for microcomputer software programs are designed to prevent:

The Role of the Public Accountant in the American Economy

Professional Standards

Professional Ethics

Legal Liability of CPAS

Audit Evidence and Documentation

Audit Planning, understanding the Client, assessing Risks, and Responding

Internal Control

Audit Sampling

Cash and Financial Investments

Accounts Receivable, Notes Receivable, and Revenue

Inventories and Cost of Goods Sold

Property Plant and Equipment: Depreciation and Depletion

Accounts Payable and Other Liabilities

Debt and Equity Capital

Auditing Operations and Completing the Audit

Auditors Report

Integrated Audits of Public Companies

Additional Assurance Services: Historical Financial Information

Additional Assurance Services: Other Information

Internal, Operational, and Compliance Auditing

Probability-Proportion-To-Size Sampling

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