Question 1

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 2

True or False: 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 3

Who generally receives the findings and conclusions of an operational audit?

Accepted Answer

A) the board of directors 
B) management 
C) the external auditor 
D) the IRS 
A) the board of directors 
B) management 
C) the external auditor 
D) the IRS

Question 4

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 5

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 6

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 7

You are the head of the internal audit department for Apple Computer.You want to hire a person to serve as one of Apple's operational auditors.Identify the candidate below that is likely to be the most qualified person for the job.

Accepted Answer

A) Jane,a CPA who has 10 years of audit experience 
B) Kasheena,an MBA who has 10 years of management experience 
C) Joe,a CISA who has 10 years of IT audit experience 
D) Vahlia,a CPA who has 7 years of audit experience and 3 years of management experience 
A) Jane,a CPA who has 10 years of audit experience 
B) Kasheena,an MBA who has 10 years of management experience 
C) Joe,a CISA who has 10 years of IT audit experience 
D) Vahlia,a CPA who has 7 years of audit experience and 3 years of management experience

Question 8

True or False: One of the advantages of CAATS software is that it can replace the auditor's judgment in specific areas of an audit.

Accepted Answer

A) True 
 B)False

Question 9

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 10

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 11

The possibility that a material error will occur even though auditors are following audit procedures and using good judgment is referred to as

Accepted Answer

A) control risk. 
B) detection risk. 
C) inherent risk. 
D) investigating risk. 
A) control risk. 
B) detection risk. 
C) inherent risk. 
D) investigating risk.

Question 12

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

Accepted Answer

The auditor prepares a written report su

Question 13

Which of the following is an information systems audit review procedure?

Accepted Answer

A) Verify the extent and effectiveness of encryption. 
B) Inspect computer sites. 
C) Test assignment procedures for user IDs. 
D) Observe the preparation of backup files. 
A) Verify the extent and effectiveness of encryption. 
B) Inspect computer sites. 
C) Test assignment procedures for user IDs. 
D) Observe the preparation of backup files.

Question 14

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 15

An auditor examines all documents related to the acquisition,repair history,and disposal of a firm's delivery van.This is an example of collecting audit evidence by

Accepted Answer

A) confirmation. 
B) reperformance. 
C) vouching. 
D) analytical review. 
A) confirmation. 
B) reperformance. 
C) vouching. 
D) analytical review.

Question 16

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 17

What is not a typical responsibility of an internal auditor?

Accepted Answer

A) helping management to improve organizational effectiveness 
B) assisting in the design and implementation of an AIS 
C) preparation of the company's financial statements 
D) implementing and monitoring of internal controls 
A) helping management to improve organizational effectiveness 
B) assisting in the design and implementation of an AIS 
C) preparation of the company's financial statements 
D) implementing and monitoring of internal controls

Question 18

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 19

Auditors have several techniques available to them to test computer-processing controls.An audit technique that immediately alerts auditors of suspicious transactions is known as

Accepted Answer

A) a SCARF. 
B) reperformance. 
C) the snapshot technique. 
D) an audit hook. 
A) a SCARF. 
B) reperformance. 
C) the snapshot technique. 
D) an audit hook.

Question 20

An auditor might use ________ to convert data from several sources into a single common format.

Accepted Answer

A) Windows Media Converter 
B) concurrent audit technique 
C) computer assisted audit techniques software 
D) Adobe Professional 
A) Windows Media Converter 
B) concurrent audit technique 
C) computer assisted audit techniques software 
D) Adobe Professional

Exam 11: Auditing Computer-Based Information Systems

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

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

Who generally receives the findings and conclusions of an operational audit?

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

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

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

You are the head of the internal audit department for Apple Computer.You want to hire a person to serve as one of Apple's operational auditors.Identify the candidate below that is likely to be the most qualified person for the job.

True or False: One of the advantages of CAATS software is that it can replace the auditor's judgment in specific areas of an audit.

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

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

The possibility that a material error will occur even though auditors are following audit procedures and using good judgment is referred to as

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

Which of the following is an information systems audit review procedure?

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

An auditor examines all documents related to the acquisition,repair history,and disposal of a firm's delivery van.This is an example of collecting audit evidence by

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

What is not a typical responsibility of an internal auditor?

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

Auditors have several techniques available to them to test computer-processing controls.An audit technique that immediately alerts auditors of suspicious transactions is known as

An auditor might use ________ to convert data from several sources into a single common format.

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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