Question 1

Embedded audit molecules can be used to continually monitor the system and collect audit evidence.

Accepted Answer

A) True 
 B)False  True

Question 2

Andile Uzoma is the CEO of Chibuzo Incorporated.The board of directors has recently demanded that they receive more assurance that Chibuzo Incorporated is operating in an efficient,effective manner.Which type of audit would best suit the demands of the board of directors?

Accepted Answer

A) Financial audit. 
B) Information system audit. 
C) Operational audit. 
D) Sustainability audit. 
A) Financial audit. 
B) Information system audit. 
C) Operational audit. 
D) Sustainability audit. C

Question 3

What is not a typical responsibility of an external auditor?

Accepted Answer

A) Helping management to improve organizational effectiveness. 
B) Assisting in the design and implementation of an AIS. 
C) Preparation of the company's financial statements. 
D) All of the above. 
A) Helping management to improve organizational effectiveness. 
B) Assisting in the design and implementation of an AIS. 
C) Preparation of the company's financial statements. 
D) All of the above. D

Question 4

The ________ stage of the auditing process involves (among other things)the auditors observing the operating activities and having discussions with employees.

Accepted Answer

A) audit planning 
B) collection of audit evidence 
C) communication of audit results 
D) evaluation of audit evidence 
A) audit planning 
B) collection of audit evidence 
C) communication of audit results 
D) evaluation of audit evidence

Question 5

The information systems audit objective that pertains to protect computer equipment,programs,communications,and data from unauthorized access,modification,or destruction is known as

Accepted Answer

A) overall security. 
B) program development. 
C) program modifications. 
D) processing. 
A) overall security. 
B) program development. 
C) program modifications. 
D) processing.

Question 6

Explain why the auditor's role in program development and acquisition should be limited.

Accepted Answer

The auditor's role in any organization s

Question 7

Auditors have several techniques available to them to test computer-processing controls.An audit technique that immediately alerts auditors of suspicious transactions is known as

Accepted Answer

A) a SCARF. 
B) reperformance. 
C) the snapshot technique. 
D) an audit hook. 
A) a SCARF. 
B) reperformance. 
C) the snapshot technique. 
D) an audit hook.

Question 8

As the head of the internal audit department for Orange Computing,you want to hire a person to serve as one of Orange's operational auditors.Identify the candidate below that is likely to be the most qualified person for the job.

Accepted Answer

A) Jane,a CPA who has 10 years of audit experience 
B) Kasheena,an MBA who has 10 years of management experience 
C) Joe,a CISA who has 10 years of IT audit experience 
D) Vahlia,a CPA who has 7 years of audit experience and 3 years of management experience 
A) Jane,a CPA who has 10 years of audit experience 
B) Kasheena,an MBA who has 10 years of management experience 
C) Joe,a CISA who has 10 years of IT audit experience 
D) Vahlia,a CPA who has 7 years of audit experience and 3 years of management experience

Question 9

You are the head of the IT department at Panther Designs,Inc.A systems review reveals that your firm has poor control procedures for preventing inadvertent programming errors.However,you are not concerned because you feel Panther Designs has strong compensating controls.What control likely exists to give you this confidence?

Accepted Answer

A) The internal audit department processes test data at Panther Designs. 
B) Panther Designs pays its employees well,decreasing the likelihood of errors. 
C) Panther Designs only hires competent programmers,decreasing the likelihood of errors. 
D) All of Panther Design's IT applications are less than 2 years old. 
A) The internal audit department processes test data at Panther Designs. 
B) Panther Designs pays its employees well,decreasing the likelihood of errors. 
C) Panther Designs only hires competent programmers,decreasing the likelihood of errors. 
D) All of Panther Design's IT applications are less than 2 years old.

Question 10

Audit routines that notify auditors of questionable transactions,often as they occur is an example of

Accepted Answer

A) integrated test facility. 
B) snapshot technique. 
C) system control audit review file. 
D) audit hooks. 
A) integrated test facility. 
B) snapshot technique. 
C) system control audit review file. 
D) audit hooks.

Question 11

Expanding a firm's operations to include a manufacturing facility overseas will

Accepted Answer

A) reduce inherent risk. 
B) reduce control risk. 
C) increase inherent risk. 
D) increase control risk. 
A) reduce inherent risk. 
B) reduce control risk. 
C) increase inherent risk. 
D) increase control risk.

Question 12

Why do all audits follow a sequence of events that can be divided into four stages,and what are the four stages?

Accepted Answer

The auditor's function generally remains

Question 13

Which statement below is incorrect regarding program modifications?

Accepted Answer

A) Only material program changes should be thoroughly tested and documented. 
B) During the change process,the developmental version of the program must be kept separate from the production version. 
C) After the modified program has received final approval,the change is implemented by replacing the developmental version with the production version. 
D) When a program change is submitted for approval,a list of all required updates should be compiled and then approved by management and program users. 
A) Only material program changes should be thoroughly tested and documented. 
B) During the change process,the developmental version of the program must be kept separate from the production version. 
C) After the modified program has received final approval,the change is implemented by replacing the developmental version with the production version. 
D) When a program change is submitted for approval,a list of all required updates should be compiled and then approved by management and program users.

Question 14

When a control deficiency is identified,the auditor should inquire about

Accepted Answer

A) tests of controls. 
B) compensating controls. 
C) the feasibility of a systems review. 
D) materiality and inherent risk factors. 
A) tests of controls. 
B) compensating controls. 
C) the feasibility of a systems review. 
D) materiality and inherent risk factors.

Question 15

Which auditing technique will not assist in determining if unauthorized programming changes have been made?

Accepted Answer

A) The use of a source code comparison program. 
B) The use of the reprocessing technique to compare program output. 
C) By interviewing and making inquiries of the programming staff. 
D) The use of parallel simulation to compare program output. 
A) The use of a source code comparison program. 
B) The use of the reprocessing technique to compare program output. 
C) By interviewing and making inquiries of the programming staff. 
D) The use of parallel simulation to compare program output.

Question 16

The information systems audit objective that pertains to source data being processed into some form of output is known as

Accepted Answer

A) overall security. 
B) program development. 
C) program modifications. 
D) processing. 
A) overall security. 
B) program development. 
C) program modifications. 
D) processing.

Question 17

An auditor might use ________ to convert data from several sources into a single common format.

Accepted Answer

A) Windows Media Converter 
B) concurrent audit technique 
C) computer assisted audit techniques software 
D) Adobe Professional 
A) Windows Media Converter 
B) concurrent audit technique 
C) computer assisted audit techniques software 
D) Adobe Professional

Question 18

Identify the company below that CAATS would likely provide the most value.

Accepted Answer

A) A local car dealership. 
B) A local floral shop. 
C) A large grocery store that uses an ERP system. 
D) A medium-sized restaurant chain with restaurants in many cities. 
A) A local car dealership. 
B) A local floral shop. 
C) A large grocery store that uses an ERP system. 
D) A medium-sized restaurant chain with restaurants in many cities.

Question 19

Auditors have the ability to change control risk.

Accepted Answer

A) True 
 B)False

Question 20

The evidence collection method that examines all supporting documents to determine the validity of a transaction is called

Accepted Answer

A) review of documentation. 
B) vouching. 
C) physical examination. 
D) analytical review. 
A) review of documentation. 
B) vouching. 
C) physical examination. 
D) analytical review.

Exam 11: Auditing Computer-Based Information Systems

Embedded audit molecules can be used to continually monitor the system and collect audit evidence.

Andile Uzoma is the CEO of Chibuzo Incorporated.The board of directors has recently demanded that they receive more assurance that Chibuzo Incorporated is operating in an efficient,effective manner.Which type of audit would best suit the demands of the board of directors?

What is not a typical responsibility of an external auditor?

The ________ stage of the auditing process involves (among other things)the auditors observing the operating activities and having discussions with employees.

The information systems audit objective that pertains to protect computer equipment,programs,communications,and data from unauthorized access,modification,or destruction is known as

Explain why the auditor's role in program development and acquisition should be limited.

Auditors have several techniques available to them to test computer-processing controls.An audit technique that immediately alerts auditors of suspicious transactions is known as

As the head of the internal audit department for Orange Computing,you want to hire a person to serve as one of Orange's operational auditors.Identify the candidate below that is likely to be the most qualified person for the job.

Audit routines that notify auditors of questionable transactions,often as they occur is an example of

Expanding a firm's operations to include a manufacturing facility overseas will

Why do all audits follow a sequence of events that can be divided into four stages,and what are the four stages?

Which statement below is incorrect regarding program modifications?

When a control deficiency is identified,the auditor should inquire about

Which auditing technique will not assist in determining if unauthorized programming changes have been made?

The information systems audit objective that pertains to source data being processed into some form of output is known as

An auditor might use ________ to convert data from several sources into a single common format.

Identify the company below that CAATS would likely provide the most value.

Auditors have the ability to change control risk.

The evidence collection method that examines all supporting documents to determine the validity of a transaction is called

Conceptual Foundations of Accounting Information Systems

Overview of Transaction Processing and Enterprise Resource Planning Systems

Systems Documentation Techniques

Relational Databases

Computer Fraud

Computer Fraud and Abuse Techniques

Control and Accounting Information Systems

Controls for Information Security

Confidentiality and Privacy Controls

Processing Integrity and Availability Controls

The Revenue Cycle: Sales to Cash Collections

The Expenditure Cycle: Purchasing to Cash Disbursements

The Production Cycle

The Human Resources Management and Payroll Cycle

General Ledger and Reporting System

Database Design Using the Rea Data Model

Implementing an Rea Model in a Relational Database

Special Topics in Rea Modeling

Introduction to Systems Development and Systems Analysis

Ais Development Strategies

Systems Design, implementation, and Operation

Filters