Question 1

How has the U.S.government deployed computer-assisted audit techniques to reduce the budget?

Accepted Answer

A) To identify fraudulent Medicare claims. 
B) To identify fraudulent defense spending. 
C) To identify fraudulent tax returns. 
D) All of the above. 
A) To identify fraudulent Medicare claims. 
B) To identify fraudulent defense spending. 
C) To identify fraudulent tax returns. 
D) All of the above.

Question 2

Software that interprets a program's source code and generates a flowchart of the program's logic is called

Accepted Answer

A) automated flowcharting programs. 
B) automated decision table programs. 
C) mapping programs. 
D) tracing program. 
A) automated flowcharting programs. 
B) automated decision table programs. 
C) mapping programs. 
D) tracing program.

Question 3

Verifying the accuracy of certain information,often through communication with third parties,is known as

Accepted Answer

A) reperformance. 
B) confirmation. 
C) substantiation. 
D) documentation. 
A) reperformance. 
B) confirmation. 
C) substantiation. 
D) documentation.

Question 4

Control risk is defined as the

Accepted Answer

A) susceptibility to material risk in the absence of controls. 
B) risk that a material misstatement will get through the internal control structure and into the financial statements. 
C) risk that auditors and their audit procedures will not detect a material error or misstatement. 
D) risk auditors will not be given the appropriate documents and records by management who wants to control audit activities and procedures. 
A) susceptibility to material risk in the absence of controls. 
B) risk that a material misstatement will get through the internal control structure and into the financial statements. 
C) risk that auditors and their audit procedures will not detect a material error or misstatement. 
D) risk auditors will not be given the appropriate documents and records by management who wants to control audit activities and procedures.

Question 5

An auditor might use ________ to examining large data files.

Accepted Answer

A) Excel 
B) Access 
C) IDEA 
D) SQL 
A) Excel 
B) Access 
C) IDEA 
D) SQL

Question 6

Describe the disadvantages of test data processing.

Accepted Answer

The auditor must spend considerable time

Question 7

The ________ to auditing provides auditors with a clear understanding of possible errors and irregularities and the related risks and exposures.

Accepted Answer

A) risk-based approach 
B) risk-adjusted approach 
C) financial audit approach 
D) information systems approach 
A) risk-based approach 
B) risk-adjusted approach 
C) financial audit approach 
D) information systems approach

Question 8

The auditor uses ________ to continuously monitor the system and collect audit evidence while live data are processed.

Accepted Answer

A) test data processing 
B) parallel simulation 
C) concurrent audit techniques 
D) analysis of program logic 
A) test data processing 
B) parallel simulation 
C) concurrent audit techniques 
D) analysis of program logic

Question 9

An auditor creates a fictitious customer in the system and then creates several fictitious sales to the customer.The records are then tracked as they are processed by the system.The auditor is using

Accepted Answer

A) an integrated test facility. 
B) the snapshot technique. 
C) a system control audit review file. 
D) continuous and intermittent simulation. 
A) an integrated test facility. 
B) the snapshot technique. 
C) a system control audit review file. 
D) continuous and intermittent simulation.

Question 10

The purpose of ________ is to determine why,how,when,and who will perform the audit.

Accepted Answer

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

Question 11

Strong ________ controls can partially compensate for inadequate ________ controls.

Accepted Answer

A) development;processing 
B) processing;development 
C) operational;internal 
D) internal;operational 
A) development;processing 
B) processing;development 
C) operational;internal 
D) internal;operational

Question 12

The information systems audit objective that pertains to having management's authorization and approval 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 13

A system that employs various types of advanced technology has more ________ risk than traditional batch processing.

Accepted Answer

A) control 
B) detection 
C) inherent 
D) investing 
A) control 
B) detection 
C) inherent 
D) investing

Question 14

Evaluating effectiveness,efficiency,and goal achievement are objectives of ________ audits.

Accepted Answer

A) financial 
B) operational 
C) information systems 
D) all of the above 
A) financial 
B) operational 
C) information systems 
D) all of the above

Question 15

Which type of work listed below is not typical of internal auditors?

Accepted Answer

A) Operational and management audits. 
B) Information system audits. 
C) Financial statement audit. 
D) Financial audit of accounting records. 
A) Operational and management audits. 
B) Information system audits. 
C) Financial statement audit. 
D) Financial audit of accounting records.

Question 16

How is a financial audit different from an information systems audit?

Accepted Answer

Financial audits examine the reliability

Question 17

Increasing the effectiveness of auditing software will

Accepted Answer

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

Question 18

What is the primary purpose of computer audit software?

Accepted Answer

A) To eliminate auditor judgment errors. 
B) To assist the auditor in retrieving and reviewing information. 
C) To help auditors detect unauthorized modifications to system program code. 
D) To help auditors recheck all mathematical calculations,cross-foot,reprocess financial statements and compare to originals. 
A) To eliminate auditor judgment errors. 
B) To assist the auditor in retrieving and reviewing information. 
C) To help auditors detect unauthorized modifications to system program code. 
D) To help auditors recheck all mathematical calculations,cross-foot,reprocess financial statements and compare to originals.

Question 19

When doing an information systems audit,auditors must review and evaluate the program development process.What errors or fraud could occur during the program development process?

Accepted Answer

There can be unintentional errors due to

Question 20

An auditor sets an embedded audit module to record all credit transactions in excess of $5,000 and stores the data in an audit log.The auditor is using

Accepted Answer

A) audit hooks. 
B) the snapshot technique. 
C) a system control audit review file. 
D) continuous and intermittent simulation. 
A) audit hooks. 
B) the snapshot technique. 
C) a system control audit review file. 
D) continuous and intermittent simulation.

Exam 11: Auditing Computer-Based Information Systems

How has the U.S.government deployed computer-assisted audit techniques to reduce the budget?

Software that interprets a program's source code and generates a flowchart of the program's logic is called

Verifying the accuracy of certain information,often through communication with third parties,is known as

Control risk is defined as the

An auditor might use ________ to examining large data files.

Describe the disadvantages of test data processing.

The ________ to auditing provides auditors with a clear understanding of possible errors and irregularities and the related risks and exposures.

The auditor uses ________ to continuously monitor the system and collect audit evidence while live data are processed.

An auditor creates a fictitious customer in the system and then creates several fictitious sales to the customer.The records are then tracked as they are processed by the system.The auditor is using

The purpose of ________ is to determine why,how,when,and who will perform the audit.

Strong ________ controls can partially compensate for inadequate ________ controls.

The information systems audit objective that pertains to having management's authorization and approval is known as

A system that employs various types of advanced technology has more ________ risk than traditional batch processing.

Evaluating effectiveness,efficiency,and goal achievement are objectives of ________ audits.

Which type of work listed below is not typical of internal auditors?

How is a financial audit different from an information systems audit?

Increasing the effectiveness of auditing software will

What is the primary purpose of computer audit software?

When doing an information systems audit,auditors must review and evaluate the program development process.What errors or fraud could occur during the program development process?

An auditor sets an embedded audit module to record all credit transactions in excess of $5,000 and stores the data in an audit log.The auditor is using

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

Strong controls can partially compensate for inadequate controls.