Question 1

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

Accepted Answer

A)  a local car dealership 
B)  a mom and pop grocery store 
C)  a large lumber mill that uses an ERP system 
D)  a medium-sized shoe retailer with outlets in many cities 
A)  a local car dealership 
B)  a mom and pop grocery store 
C)  a large lumber mill that uses an ERP system 
D)  a medium-sized shoe retailer with outlets in many cities

Question 2

Which of the choices below best describes a risk-based audit approach?

Accepted Answer

A)  a four-step approach to internal control evaluation. 
B)  a three-step approach to internal control evaluation. 
C)  a four-step approach to financial statement review and recommendations. 
D)  a three-step approach to financial statement review and recommendations. 
A)  a four-step approach to internal control evaluation. 
B)  a three-step approach to internal control evaluation. 
C)  a four-step approach to financial statement review and recommendations. 
D)  a three-step approach to financial statement review and recommendations.

Question 3

What type of data does CAATS use to produce an auditing program?

Accepted Answer

A)  archived data 
B)  backup data 
C)  live data 
D)  a copy of live data 
A)  archived data 
B)  backup data 
C)  live data 
D)  a copy of live data

Question 4

A type of software that auditors can use to analyze program logic and detect unexecuted program code is

Accepted Answer

A)  an audit log. 
B)  a mapping program. 
C)  a scanning routine. 
D)  program tracing. 
A)  an audit log. 
B)  a mapping program. 
C)  a scanning routine. 
D)  program tracing.

Question 5

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 6

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 7

An audit software program that generates programs that perform certain audit functions,based on auditor specifications,is referred to as a(n)

Accepted Answer

A)  input controls matrix. 
B)  CAATS. 
C)  embedded audit module. 
D)  mapping program. 
A)  input controls matrix. 
B)  CAATS. 
C)  embedded audit module. 
D)  mapping program.

Question 8

With regards to an accounting information system,a financial audit is most concerned with

Accepted Answer

A)  the system's output. 
B)  the system's input. 
C)  the system's processing. 
D)  the system's storage. 
A)  the system's output. 
B)  the system's input. 
C)  the system's processing. 
D)  the system's storage.

Question 9

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 10

Describe the disadvantages of test data processing.

Accepted Answer

The auditor must spend considerable time

Question 11

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

Accepted Answer

Financial audits examine the reliability

Question 12

An auditor sets an embedded audit module to selectively monitor transactions.Selected transactions are then reprocessed independently,and the results are compared with those obtained by the normal system processing.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 13

The scope of a(n)________ audit encompasses all aspects of systems management.

Accepted Answer

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

Question 14

During the evidence evaluation stage of an operational audit,the auditor measures the system against generally accepted accounting principles (GAAP).

Accepted Answer

A) True 
 B)False

Question 15

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 16

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 17

Name and describe the different types of audits.

Accepted Answer

The financial audit - this audit examine

Question 18

Expanding a firm's operations to include a manufacturing facility in Russia 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 19

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 20

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.

Exam 11: Auditing Computer-Based Information Systems

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

Which of the choices below best describes a risk-based audit approach?

What type of data does CAATS use to produce an auditing program?

A type of software that auditors can use to analyze program logic and detect unexecuted program code is

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

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

An audit software program that generates programs that perform certain audit functions,based on auditor specifications,is referred to as a(n)

With regards to an accounting information system,a financial audit is most concerned with

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

Describe the disadvantages of test data processing.

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

An auditor sets an embedded audit module to selectively monitor transactions.Selected transactions are then reprocessed independently,and the results are compared with those obtained by the normal system processing.The auditor is using

The scope of a(n)________ audit encompasses all aspects of systems management.

During the evidence evaluation stage of an operational audit,the auditor measures the system against generally accepted accounting principles (GAAP).

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

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.

Name and describe the different types of audits.

Expanding a firm's operations to include a manufacturing facility in Russia will

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

Accounting Information Systems: an Overview

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

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