Question 1

The purpose of an internal audit is

Accepted Answer

A) to evaluate the adequacy and effectiveness of company's internal controls. 
B) to determine the extent to which assigned responsibilities are actually carried out. 
C) to collect evidence on whether the company is continuing as a going concern. 
D) A and B only 
A) to evaluate the adequacy and effectiveness of company's internal controls. 
B) to determine the extent to which assigned responsibilities are actually carried out. 
C) to collect evidence on whether the company is continuing as a going concern. 
D) A and B only

Question 2

The __________ part of the auditing process involves (among other things)the auditors observing the operating activities and having discussion 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 3

An auditor must be willing to accept some degree of risk that the audit conclusion is incorrect.Accordingly,the auditor's objective is to seek __________ that no material error exists in the information audited.

Accepted Answer

A) absolute reliability 
B) reasonable evidence 
C) reasonable assurance 
D) reasonable objectivity 
A) absolute reliability 
B) reasonable evidence 
C) reasonable assurance 
D) reasonable objectivity

Question 4

In the __________ stage of an operational audit,the auditor measures the actual system against an ideal standard.

Accepted Answer

A) evidence collection 
B) evidence evaluation 
C) testing 
D) internal control 
A) evidence collection 
B) evidence evaluation 
C) testing 
D) internal control

Question 5

Briefly describe tests that can be used to detect unauthorized program modifications.

Accepted Answer

Source code comparison - use of a comput

Question 6

Discuss the disadvantages of test data processing.

Accepted Answer

The auditor must spend considerable time

Question 7

The use of a secure file library and restrictions on physical access to data files is a control procedure used in conjunction with

Accepted Answer

A) computer processing controls. 
B) data files. 
C) program modification procedures. 
D) program development. 
A) computer processing controls. 
B) data files. 
C) program modification procedures. 
D) program development.

Question 8

What is the risk-based audit approach?

Accepted Answer

The risk-based audit approach has four s

Question 9

What is the primary purpose of computer audit software?

Accepted Answer

A) to free the auditor from the attest phase of the audit 
B) to assist the auditor in reviewing and retrieving information in computer files 
C) to look for unauthorized modifications and changes to system program code 
D) to assist the auditor in reviewing and retrieving information in accounting records and systems documentation 
A) to free the auditor from the attest phase of the audit 
B) to assist the auditor in reviewing and retrieving information in computer files 
C) to look for unauthorized modifications and changes to system program code 
D) to assist the auditor in reviewing and retrieving information in accounting records and systems documentation

Question 10

How would auditors determine if unauthorized program changes have been made?

Accepted Answer

A) by interviewing and making inquiries of the programming staff 
B) by examining the systems design and programming documentation 
C) by using a source code comparison program 
D) by interviewing and making inquiries of recently terminated programming staff 
A) by interviewing and making inquiries of the programming staff 
B) by examining the systems design and programming documentation 
C) by using a source code comparison program 
D) by interviewing and making inquiries of recently terminated programming staff

Question 11

Practically all audits follow a similar sequence of activities that can be divided into four stages.Organizing the audit team and the physical examination of assets are components of which two separate audit stages?

Accepted Answer

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

Question 12

The evidence collection method that is used to gather data about the system is

Accepted Answer

A) reperformance. 
B) questionnaires. 
C) valuation. 
D) none of the above 
A) reperformance. 
B) questionnaires. 
C) valuation. 
D) none of the above

Question 13

The three different types of internal audits commonly performed today are

Accepted Answer

A) internal,external,defense contracting. 
B) financial,operational,information systems. 
C) financial,operational,management. 
D) internal,external,public. 
A) internal,external,defense contracting. 
B) financial,operational,information systems. 
C) financial,operational,management. 
D) internal,external,public.

Question 14

Why do all audits follow a sequence of events that can be divided into four stages?

Accepted Answer

The auditor's function generally remains

Question 15

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 16

One way to document the review of source data controls is to use

Accepted Answer

A) a flowchart generator program. 
B) a mapping program. 
C) an input control matrix. 
D) a program algorithm matrix. 
A) a flowchart generator program. 
B) a mapping program. 
C) an input control matrix. 
D) a program algorithm matrix.

Question 17

An auditor finds that absentee rates are significantly higher on Mondays and Fridays than on other work days.This is an example 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 18

a)What is test data processing?
b)How is it done?
c)What are the sources that an auditor can use to generate test data?

Accepted Answer

a)Test data processing is a technique us

Question 19

What does an auditor examine when performing a detailed analysis of program logic?

Accepted Answer

An auditor refers to systems a

Question 20

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

Accepted Answer

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

The purpose of an internal audit is

The __________ part of the auditing process involves (among other things)the auditors observing the operating activities and having discussion with employees.

An auditor must be willing to accept some degree of risk that the audit conclusion is incorrect.Accordingly,the auditor's objective is to seek __________ that no material error exists in the information audited.

In the __________ stage of an operational audit,the auditor measures the actual system against an ideal standard.

Briefly describe tests that can be used to detect unauthorized program modifications.

Discuss the disadvantages of test data processing.

The use of a secure file library and restrictions on physical access to data files is a control procedure used in conjunction with

What is the risk-based audit approach?

What is the primary purpose of computer audit software?

How would auditors determine if unauthorized program changes have been made?

Practically all audits follow a similar sequence of activities that can be divided into four stages.Organizing the audit team and the physical examination of assets are components of which two separate audit stages?

The evidence collection method that is used to gather data about the system is

The three different types of internal audits commonly performed today are

Why do all audits follow a sequence of events that can be divided into four stages?

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

One way to document the review of source data controls is to use

An auditor finds that absentee rates are significantly higher on Mondays and Fridays than on other work days.This is an example collecting audit evidence by

a)What is test data processing? b)How is it done? c)What are the sources that an auditor can use to generate test data?

What does an auditor examine when performing a detailed analysis of program logic?

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

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

The purpose of an internal audit is

The __________ part of the auditing process involves (among other things)the auditors observing the operating activities and having discussion with employees.

An auditor must be willing to accept some degree of risk that the audit conclusion is incorrect.Accordingly,the auditor's objective is to seek __________ that no material error exists in the information audited.

In the __________ stage of an operational audit,the auditor measures the actual system against an ideal standard.

Briefly describe tests that can be used to detect unauthorized program modifications.

Discuss the disadvantages of test data processing.

The use of a secure file library and restrictions on physical access to data files is a control procedure used in conjunction with

What is the risk-based audit approach?

What is the primary purpose of computer audit software?

How would auditors determine if unauthorized program changes have been made?

Practically all audits follow a similar sequence of activities that can be divided into four stages.Organizing the audit team and the physical examination of assets are components of which two separate audit stages?

The evidence collection method that is used to gather data about the system is

The three different types of internal audits commonly performed today are

Why do all audits follow a sequence of events that can be divided into four stages?

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

One way to document the review of source data controls is to use

An auditor finds that absentee rates are significantly higher on Mondays and Fridays than on other work days.This is an example collecting audit evidence by

a)What is test data processing? b)How is it done? c)What are the sources that an auditor can use to generate test data?

What does an auditor examine when performing a detailed analysis of program logic?

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

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