Question 1

Increasing the effectiveness of internal controls would have the greatest effect on

Accepted Answer

A) reducing inherent risk. 
B) reducing control risk. 
C) reducing detection risk. 
D) reducing audit risk. 
A) reducing inherent risk. 
B) reducing control risk. 
C) reducing detection risk. 
D) reducing audit risk.

Question 2

The auditor's objective is to seek ________ that no material error exists in the information audited.

Accepted Answer

A) absolute reliability 
B) reasonable objectivity 
C) reasonable evidence 
D) reasonable assurance 
A) absolute reliability 
B) reasonable objectivity 
C) reasonable evidence 
D) reasonable assurance

Question 3

Auditors have the ability to change detection risk.

Accepted Answer

A) True 
 B)False

Question 4

Briefly describe tests that can be used to detect unauthorized program modifications.

Accepted Answer

Review procedures for requesting,approvi

Question 5

You are an internal auditor for Ron Burgandy Suits.The CEO has asked you to perform an audit of the program modifications process.Identify one procedure you might use to test controls surrounding the program modification process.

Accepted Answer

A) Review logical access control policies. 
B) Discuss modification policies with management,users,and systems personnel. 
C) Verify logical access controls are in effect for program changes. 
D) Separate development,test,and production versions of programs. 
A) Review logical access control policies. 
B) Discuss modification policies with management,users,and systems personnel. 
C) Verify logical access controls are in effect for program changes. 
D) Separate development,test,and production versions of programs.

Question 6

Identify the activity below that the external auditor should not be involved.

Accepted Answer

A) Examining system access logs. 
B) Developing the information system. 
C) Examining logical access policies and procedures. 
D) Making recommendations to management for improvement of existing internal controls. 
A) Examining system access logs. 
B) Developing the information system. 
C) Examining logical access policies and procedures. 
D) Making recommendations to management for improvement of existing internal controls.

Question 7

Describe the concept of materiality and provide an example.

Accepted Answer

Materiality is the amount of an error,fr

Question 8

Which of the following is not a control procedure for preventing inadvertent programming errors?

Accepted Answer

A) Review software license agreements. 
B) Test new programs,including user acceptance testing. 
C) Purchase hardware only from management approved vendors. 
D) Require management approval of programming specifications. 
A) Review software license agreements. 
B) Test new programs,including user acceptance testing. 
C) Purchase hardware only from management approved vendors. 
D) Require management approval of programming specifications.

Question 9

Auditors often use reperformance to test a company's internal control.

Accepted Answer

A) True 
 B)False

Question 10

a)What is test data processing? b)How is it done? c)What are the sources that an auditor can use to generate test data?

Accepted Answer

a)Test data processing is a technique us

Question 11

Which of the following is not one way CAATS could be used?

Accepted Answer

A) To merge files. 
B) To test files for specific risks. 
C) To process electronic transactions. 
D) To query data files to retrieve records meeting specified criteria. 
A) To merge files. 
B) To test files for specific risks. 
C) To process electronic transactions. 
D) To query data files to retrieve records meeting specified criteria.

Question 12

Andile Uzoma is the CEO of Chibuzo Incorporated.The board of directors has recently demanded that they receive independent assurance regarding the financial statements,which are generated using an accounting information system.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.

Question 13

The evidence collection method that considers the relationships and trends among information to detect items that should be investigated further is called

Accepted Answer

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

Question 14

What role should an auditor play in system development?

Accepted Answer

A) an independent reviewer only 
B) a developer of internal controls 
C) an advisor and developer of internal control specifications 
D) A and B above 
A) an independent reviewer only 
B) a developer of internal controls 
C) an advisor and developer of internal control specifications 
D) A and B above

Question 15

How and to whom does an auditor communicate the audit results?

Accepted Answer

The auditor prepares a written report su

Question 16

Explain the differences between each type of audit risk.

Accepted Answer

Inherent risk is the threat faced just b

Increasing the effectiveness of internal controls would have the greatest effect on

The auditor's objective is to seek ________ that no material error exists in the information audited.

Auditors have the ability to change detection risk.

Briefly describe tests that can be used to detect unauthorized program modifications.

You are an internal auditor for Ron Burgandy Suits.The CEO has asked you to perform an audit of the program modifications process.Identify one procedure you might use to test controls surrounding the program modification process.

Identify the activity below that the external auditor should not be involved.

Describe the concept of materiality and provide an example.

Which of the following is not a control procedure for preventing inadvertent programming errors?

Auditors often use reperformance to test a company's internal control.

a)What is test data processing? b)How is it done? c)What are the sources that an auditor can use to generate test data?

Which of the following is not one way CAATS could be used?

The evidence collection method that considers the relationships and trends among information to detect items that should be investigated further is called

What role should an auditor play in system development?

How and to whom does an auditor communicate the audit results?

Explain the differences between each type of audit risk.

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

Exam 11: Auditing Computer-Based Information Systems

Increasing the effectiveness of internal controls would have the greatest effect on

The auditor's objective is to seek ________ that no material error exists in the information audited.

Auditors have the ability to change detection risk.

Briefly describe tests that can be used to detect unauthorized program modifications.

You are an internal auditor for Ron Burgandy Suits.The CEO has asked you to perform an audit of the program modifications process.Identify one procedure you might use to test controls surrounding the program modification process.

Identify the activity below that the external auditor should not be involved.

Describe the concept of materiality and provide an example.

Which of the following is not a control procedure for preventing inadvertent programming errors?

Auditors often use reperformance to test a company's internal control.

a)What is test data processing? b)How is it done? c)What are the sources that an auditor can use to generate test data?

Which of the following is not one way CAATS could be used?

The evidence collection method that considers the relationships and trends among information to detect items that should be investigated further is called

What role should an auditor play in system development?

How and to whom does an auditor communicate the audit results?

Explain the differences between each type of audit risk.

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