Question 1

Describe the risk-based audit approach.

Accepted Answer

The risk-based audit approach has four s

Question 2

When programmers are working with program code,they often employ utilities that are also used in auditing.For example,as program code evolves,it is often the case that variables defined during the early part of development become irrelevant.The occurrences of variables that are not used by the program can be found using

Accepted Answer

A)  program tracing. 
B)  scanning routines. 
C)  mapping programs. 
D)  embedded audit modules. 
A)  program tracing. 
B)  scanning routines. 
C)  mapping programs. 
D)  embedded audit modules.

Question 3

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 4

One type of audit that is concerned with the economical and efficient use of resources and the accomplishment of established goals and objectives is known as a(n)________ audit.

Accepted Answer

A)  financial 
B)  information systems 
C)  internal control 
D)  operational or management 
A)  financial 
B)  information systems 
C)  internal control 
D)  operational or management

Question 5

Name and describe the different types of audits.

Accepted Answer

The financial audit this audit examines

Question 6

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 7

An auditor sets an embedded audit module to flag all credit transactions in excess of $1,500.The flag causes the system state to be recorded before and after each transaction is processed.The auditor is using

Accepted Answer

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

Question 8

Organizing the audit team and the physical examination of assets are components of which two separate audit stages?

Accepted Answer

A)  planning; evaluating audit evidence 
B)  planning; collecting audit evidence 
C)  collecting audit evidence; communicating audit results 
D)  communicating audit results; evaluating audit evidence 
A)  planning; evaluating audit evidence 
B)  planning; collecting audit evidence 
C)  collecting audit evidence; communicating audit results 
D)  communicating audit results; evaluating audit evidence

Question 9

Regarding program modifications,which statement below is incorrect?

Accepted Answer

A)  Only material program changes should be thoroughly tested and documented. 
B)  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. 
C)  During the change process, the developmental version of the program must be kept separate from the production version. 
D)  After the modified program has received final approval, the change is implemented by replacing the developmental version with the production version. 
A)  Only material program changes should be thoroughly tested and documented. 
B)  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. 
C)  During the change process, the developmental version of the program must be kept separate from the production version. 
D)  After the modified program has received final approval, the change is implemented by replacing the developmental version with the production version.

Question 10

Audit tests and procedures traditionally have been performed on a sample basis.Do options exist for auditors to test significantly more (or all)transactions?

Accepted Answer

Computer assisted audit techniques (CAAT

Question 11

An auditor sets an embedded audit module to flag questionable online transactions,display information about the transaction on the auditor's computer,and send a text message to the auditor's cell phone.The auditor is using

Accepted Answer

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

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

The use of a secure file library and restrictions on physical access to data files are control procedures used together to prevent

Accepted Answer

A)  an employee or outsider obtaining data about an important client. 
B)  a data entry clerk from introducing data entry errors into the system. 
C)  a computer operator from losing or corrupting files or data during transaction processing. 
D)  programmers making unauthorized modifications to programs. 
A)  an employee or outsider obtaining data about an important client. 
B)  a data entry clerk from introducing data entry errors into the system. 
C)  a computer operator from losing or corrupting files or data during transaction processing. 
D)  programmers making unauthorized modifications to programs.

Question 14

The ________ audit examines the reliability and integrity of accounting records.

Accepted Answer

A)  financial 
B)  informational 
C)  information systems 
D)  operational 
A)  financial 
B)  informational 
C)  information systems 
D)  operational

Question 15

Assessing the quality of internal controls,the reliability of information,and operating performance are all part of which stage of the auditing process?

Accepted Answer

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

Question 16

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

Accepted Answer

A)  Use of a source code comparison program 
B)  Use of the reprocessing technique to compare program output 
C)  Interviewing and making inquiries of the programming staff 
D)  Use of parallel simulation to compare program output 
A)  Use of a source code comparison program 
B)  Use of the reprocessing technique to compare program output 
C)  Interviewing and making inquiries of the programming staff 
D)  Use of parallel simulation to compare program output

Question 17

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 18

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.

Question 19

What is the purpose of an information systems audit?

Accepted Answer

A)  To determine the inherent risk factors found in the system 
B)  To review and evaluate the internal controls that protect the system 
C)  To examine the reliability and integrity of accounting records 
D)  To examine whether resources have been used in an economical and efficient manner in keeping with organization goals and objectives 
A)  To determine the inherent risk factors found in the system 
B)  To review and evaluate the internal controls that protect the system 
C)  To examine the reliability and integrity of accounting records 
D)  To examine whether resources have been used in an economical and efficient manner in keeping with organization goals and objectives

Question 20

The ________ audit is concerned with the economical and efficient use of resources and the accomplishment of established goals and objectives.

Accepted Answer

A)  financial 
B)  informational 
C)  information systems 
D)  operational 
A)  financial 
B)  informational 
C)  information systems 
D)  operational

Exam 11: Auditing Computer-Based Information Systems

Describe the risk-based audit approach.

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

One type of audit that is concerned with the economical and efficient use of resources and the accomplishment of established goals and objectives is known as a(n)________ audit.

Name and describe the different types of audits.

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

An auditor sets an embedded audit module to flag all credit transactions in excess of $1,500.The flag causes the system state to be recorded before and after each transaction is processed.The auditor is using

Organizing the audit team and the physical examination of assets are components of which two separate audit stages?

Regarding program modifications,which statement below is incorrect?

Audit tests and procedures traditionally have been performed on a sample basis.Do options exist for auditors to test significantly more (or all)transactions?

An auditor sets an embedded audit module to flag questionable online transactions,display information about the transaction on the auditor's computer,and send a text message to the auditor's cell phone.The auditor is using

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

The use of a secure file library and restrictions on physical access to data files are control procedures used together to prevent

The ________ audit examines the reliability and integrity of accounting records.

Assessing the quality of internal controls,the reliability of information,and operating performance are all part of which stage of the auditing process?

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

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

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

What is the purpose of an information systems audit?

The ________ audit is concerned with the economical and efficient use of resources and the accomplishment of established goals and objectives.

Accounting Information Systems: an Overview

Overview of Transaction Processing and Erp Systems

Systems Documentation Techniques

Relational Databases

Computer Fraud

Computer Fraud and Abuse Techniques

Control and Accounting Information Systems

Information Systems Controls for System Reliability Part 1: Information Security

Information Systems Controls for Systems Reliability Part 2: Confidentiality and Privacy

Information Systems Controls for Systems Reliability Part 3: Processing Integrity and Availability

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

The Rea Data Model

Implementing an Rea Model in a Relational Database

Special Topics in Rea Modeling

Introduction to Systems Development Systems Analysis

Ais Development Strategies

Systems Design, implementation, and Operation

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