Question 1

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 2

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 amended program has received final approval,the change is implemented by replacing the production version with the developmental 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 amended program has received final approval,the change is implemented by replacing the production version with the developmental version.

Question 3

To document the review of source data controls,an auditor may use

Accepted Answer

A) an input control matrix. 
B) test data processing. 
C) computer audit software. 
D) analysis of program logic. 
A) an input control matrix. 
B) test data processing. 
C) computer audit software. 
D) analysis of program logic.

Question 4

One way an auditor gauges how much audit work and testing needs to be performed is through evaluating materiality and seeking reasonable assurance about the nature of the information or process.What is key to determining materiality during an audit?

Accepted Answer

A) determining if material errors exist in the information or processes undergoing audit 
B) the testing of records,account balances,and procedures on a sample basis 
C) determining what is and is not important given a set of circumstances is primarily a matter of judgment 
D) none of the above 
A) determining if material errors exist in the information or processes undergoing audit 
B) the testing of records,account balances,and procedures on a sample basis 
C) determining what is and is not important given a set of circumstances is primarily a matter of judgment 
D) none of the above

Question 5

The risk-based audit approach is

Accepted Answer

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

Question 6

Auditing involves the

Accepted Answer

A) collection,review,and documentation of audit evidence. 
B) planning and verification of economic events. 
C) collection of audit evidence and approval of economic events. 
D) testing,documentation,and certification of audit evidence. 
A) collection,review,and documentation of audit evidence. 
B) planning and verification of economic events. 
C) collection of audit evidence and approval of economic events. 
D) testing,documentation,and certification of audit evidence.

Question 7

Discuss the collection of evidence in audits.

Accepted Answer

Since the audit effort revolves around t

Question 8

The auditor's role in systems development should be

Accepted Answer

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

Question 9

What is the purpose of an AIS audit?

Accepted Answer

A) to determine the inherent risk factors found in the system 
B) to review and evaluate the internal controls that protects 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 protects 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 10

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 11

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 12

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 13

What are the types of evidence-gathering activities generally used in an operational audit?

Accepted Answer

There are six general categories of evid

Question 14

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 15

Which of the following is not one of the three types of internal audits?

Accepted Answer

A) Financial 
B) Operational 
C) Information systems 
D) Organizational 
A) Financial 
B) Operational 
C) Information systems 
D) Organizational

Question 16

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 17

The __________ procedure for auditing computer process controls uses a hypothetical series of valid and invalid transactions.

Accepted Answer

A) concurrent audit techniques 
B) test data processing 
C) integrated test facility 
D) dual process 
A) concurrent audit techniques 
B) test data processing 
C) integrated test facility 
D) dual process

Question 18

List and explain the types of risk possible when conducting an audit.

Accepted Answer

Inherent risk - the susceptibility to ma

Question 19

The evidence collection method that considers the relationship 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 20

Which characteristics below is not a characteristic of auditing?

Accepted Answer

A) evidence collection 
B) establishing audit criteria 
C) objectivity 
D) systems development 
A) evidence collection 
B) establishing audit criteria 
C) objectivity 
D) systems development

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

Regarding program modifications,which statement below is incorrect?

To document the review of source data controls,an auditor may use

One way an auditor gauges how much audit work and testing needs to be performed is through evaluating materiality and seeking reasonable assurance about the nature of the information or process.What is key to determining materiality during an audit?

The risk-based audit approach is

Auditing involves the

Discuss the collection of evidence in audits.

The auditor's role in systems development should be

What is the purpose of an AIS audit?

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

What is not a typical responsibility of an internal auditor?

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

What are the types of evidence-gathering activities generally used in an operational audit?

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

Which of the following is not one of the three types of internal audits?

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

The __________ procedure for auditing computer process controls uses a hypothetical series of valid and invalid transactions.

List and explain the types of risk possible when conducting an audit.

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

Which characteristics below is not a characteristic of auditing?

Accounting Information Systems

Overview of Business Processes

Systems Development and Documentation Techniques

Relational Databases

Computer Fraud and Security

Control and Accounting Information Systems

Infromation System Controls for Systems Reliability

Auditing Computer-Based Information Systems

The Revenue Cycle: Sales an Cash Collections

The Expenditure Cycle: Purchasing and Cash Disbursements

The Production Cycle

The Human Resources Managementpayroll Cycle

General Ledger and Reporting System

Data Modeling and Database Design

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 9: Auditing Computer-Based Informtion Systems

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

Regarding program modifications,which statement below is incorrect?

To document the review of source data controls,an auditor may use

One way an auditor gauges how much audit work and testing needs to be performed is through evaluating materiality and seeking reasonable assurance about the nature of the information or process.What is key to determining materiality during an audit?

The risk-based audit approach is

Auditing involves the

Discuss the collection of evidence in audits.

The auditor's role in systems development should be

What is the purpose of an AIS audit?

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

What is not a typical responsibility of an internal auditor?

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

What are the types of evidence-gathering activities generally used in an operational audit?

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

Which of the following is not one of the three types of internal audits?

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

The __________ procedure for auditing computer process controls uses a hypothetical series of valid and invalid transactions.

List and explain the types of risk possible when conducting an audit.

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

Which characteristics below is not a characteristic of auditing?

Accounting Information Systems

Overview of Business Processes

Systems Development and Documentation Techniques

Relational Databases

Computer Fraud and Security

Control and Accounting Information Systems

Infromation System Controls for Systems Reliability

Auditing Computer-Based Information Systems

The Revenue Cycle: Sales an Cash Collections

The Expenditure Cycle: Purchasing and Cash Disbursements

The Production Cycle

The Human Resources Managementpayroll Cycle

General Ledger and Reporting System

Data Modeling and Database Design

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