Exam 14: Auditing Information Technology

In ________ checking,an auditor manually processes test or real program data through the logic of a program.

The test data technique requires minimal computer expertise and is usually inexpensive to implement.

One type of tracing is to verify a hash total of the object code of software to detect modifications to the software.

Which of the following is a possible benefit of using information systems technology in the conduct of an audit?

The information system auditing technology that originated as a technique to assist in program design and testing is

Audits of computer service centers do not require as high a degree of technical expertise as do audits of computerized applications.

________ is the most recent certification programs and for individuals interested in Governance of Enterprise IT.

Information system audits to verify compliance with internal controls are performed by

Presented below is a list of terms relating to accounting information systems,followed by definitions of those terms. Required: Match the letter next to each definition with the appropriate term.Each answer will be used only once. ________ 1.Mapping ________ 2.Compliance testing ________ 3.Extended records ________ 4.Substantive testing ________ 5.Interim audit ________ 6.Snapshot ________ 7.Parallel simulation ________ 8.Audit software ________ 9.Desk checking ________10.Tracing A.Modification of programs to collect and store additional data of audit interest B.Computer programs that permit the computer to be used as an auditing tool C.Special software that is used to monitor the executing of a program D.The first stage of a financial statement audit which has the objective of establishing the degree to which the internal control system can be relied upon E.Provides a detailed audit trail of the instructions executed during a program's operation F.Modification of programs to output data of audit interest G.Direct verification of balances contained in financial statements H.The auditor manually processes test or real data through the logic of a computer program I.Testing to confirm the existence,assess the effectiveness,and check the continuity of operation of internal controls J.The processing of real data through audit programs,with the simulated output and the regular output compared for control purposes

Listed below are five examples of auditing situations and five information systems auditing techniques. Required: First,match the letter of the information system auditing technique which best identifies the example.Then,in the space below each item,write a brief explanation of how the technique works in the situation. A.Parallel simulation B.Test data approach C.Mapping D.PC software E.Extended records ________ 1.An auditor performs an inexpensive test of a cash disbursements program without modifying the client's program. ________ 2.Audit team members communicate with each other in separate locations during an audit by exchanging Word and Excel files electronically. ________ 3.An auditor inputs test sales order data to find out whether a sales order program executes the program statements needed to produce a shipping notice document. ________ 4.An internal auditor modifies a newly designed accounts receivable program to randomly select sales transactions and save each transaction's complete processing audit trail. ________ 5.During substantive testing,an auditor tests a client's loan interest accrual program by submitting the client's data to a program running on a computer at the auditor's office.

With the advances in technology today,the "around-the-computer" approach to auditing is no longer widely used.

The technology that involves the modification of actual computer programs for audit purposes is called

Parallel simulation processes test data through real programs.

An audit technique not requiring the use of the client's computer facilities is

Most information system audits follow a four-phase structure,which is followed by analysis and reporting of results.

Auditors with little computer expertise can use ________ to perform audit-related data processing functions.

In the program change control phase of an application systems development audit,an element that may represent a major loss exposure in terms of fraud and access to sensitive data is

An internal auditor conducts an information systems audit using the professional standards promulgated by the

Describe three areas that an auditor could examine in an audit of a computer service center.

The goal of RBA to auditing is to apply audit efforts to areas in proportion to their likelihood to