Question 1

All of the following are control risks associated with the distributed data processing structure except

Accepted Answer

A) lack of separation of duties 
B) system incompatibilities 
C) system interdependency 
D) lack of documentation standards 
A) lack of separation of duties 
B) system incompatibilities 
C) system interdependency 
D) lack of documentation standards

Question 2

Explain how general controls impact transaction integrity and the financial reporting process.

Accepted Answer

Consider an organization with poor datab

Question 3

Inherent risk

Accepted Answer

A) exists because all control structures are flawed in some ways. 
B) is the likelihood that material misstatements exist in the financial statements of the firm. 
C) is associated with the unique characteristics of the business or industry of the client. 
D) is the likelihood that the auditor will not find material misstatements. 
A) exists because all control structures are flawed in some ways. 
B) is the likelihood that material misstatements exist in the financial statements of the firm. 
C) is associated with the unique characteristics of the business or industry of the client. 
D) is the likelihood that the auditor will not find material misstatements.

Question 4

Which of the following is not a generally accepted auditing standard?

Accepted Answer

A) The auditor must have adequate technical training and proficiency. 
B) The auditor must obtain sufficient, competent evidence. 
C) The auditor must have independence of mental attitude. 
D) All of the above are generally accepted auditing standard general standards. 
A) The auditor must have adequate technical training and proficiency. 
B) The auditor must obtain sufficient, competent evidence. 
C) The auditor must have independence of mental attitude. 
D) All of the above are generally accepted auditing standard general standards.

Question 5

Which of the following is true?

Accepted Answer

A) Core competency theory argues that an organization should outsource specific core assets. 
B) Core competency theory argues that an organization should focus exclusively on its core business competencies. 
C) Core competency theory argues that an organization should not outsource specific commodity assets. 
D) Core competency theory argues that an organization should retain certain specific noncore assets in-house. 
A) Core competency theory argues that an organization should outsource specific core assets. 
B) Core competency theory argues that an organization should focus exclusively on its core business competencies. 
C) Core competency theory argues that an organization should not outsource specific commodity assets. 
D) Core competency theory argues that an organization should retain certain specific noncore assets in-house.

Question 6

Does a qualified opinion on management's assessment of internal controls over the financial reporting system necessitate a qualified opinion on the financial statements? Explain.

Accepted Answer

No.Auditors are permitted to simultaneou

Question 7

What is a disaster recovery plan?

Accepted Answer

A disaster recovery plan is a comprehens

Question 8

What are the components of audit risk?

Accepted Answer

Inherent risk is associated with the uni

Question 9

The PCAOB's Auditing Standard No.5 specifically requires auditors to understand transaction flows in designing their test of controls.What steps does this entail?

Accepted Answer

This involves:
1.Selecting the financial

Question 10

Compare and contrast the following disaster recovery options: empty shell,recovery operations center,and internally provided backup.Rank them from most risky to least risky,as well as most costly to least costly.

Accepted Answer

The lowest cost method is internally pro

Question 11

Discuss the key features of Section 404 of the Sarbanes-Oxley Act.

Accepted Answer

Section 404 requires the management of p

Question 12

What are the objectives of application controls?

Accepted Answer

The objectives of application

Question 13

Briefly outline transaction cost economics as it relates to IT outsourcing.

Accepted Answer

Transaction cost economics theory is in

Question 14

Which of the following is not true?

Accepted Answer

A) When management outsources their organization's IT functions, they also outsource responsibility for internal control. 
B) Once a client firm has outsourced specific IT assets, its performance becomes linked to the vendor's performance. 
C) IT outsourcing may effect incongruence between a firm's IT strategic planning and its business planning functions. 
D) The financial justification for IT outsourcing depends upon the vendor achieving economies of scale. 
A) When management outsources their organization's IT functions, they also outsource responsibility for internal control. 
B) Once a client firm has outsourced specific IT assets, its performance becomes linked to the vendor's performance. 
C) IT outsourcing may effect incongruence between a firm's IT strategic planning and its business planning functions. 
D) The financial justification for IT outsourcing depends upon the vendor achieving economies of scale.

Question 15

Name three types of program fraud.

Accepted Answer

Program fraud includes:
(1)creating ille

Question 16

What fraud detection responsibilities are imposed on auditors by the Sarbanes-Oxley Act?

Accepted Answer

SOX places responsibility on auditors to

Question 17

What is a mirrored data center?

Accepted Answer

A mirrored data center duplicates progra

Question 18

What approach to the design and assessment of controls is recommended by PCAOB Auditing Standard No.5?

Accepted Answer

The PCAOB's Auditing Standard

Question 19

Scavenging is a form of fraud in which the perpetrator uses a computer program to search for key terms in a database and then steal the data.

Accepted Answer

A) True 
 B)False

Question 20

Transaction cost economics (TCE)theory suggests that firms should outsource specific noncore IT assets.

Accepted Answer

A) True 
 B)False

All of the following are control risks associated with the distributed data processing structure except

Explain how general controls impact transaction integrity and the financial reporting process.

Inherent risk

Which of the following is not a generally accepted auditing standard?

Which of the following is true?

Does a qualified opinion on management's assessment of internal controls over the financial reporting system necessitate a qualified opinion on the financial statements? Explain.

What is a disaster recovery plan?

What are the components of audit risk?

The PCAOB's Auditing Standard No.5 specifically requires auditors to understand transaction flows in designing their test of controls.What steps does this entail?

Compare and contrast the following disaster recovery options: empty shell,recovery operations center,and internally provided backup.Rank them from most risky to least risky,as well as most costly to least costly.

Discuss the key features of Section 404 of the Sarbanes-Oxley Act.

What are the objectives of application controls?

Briefly outline transaction cost economics as it relates to IT outsourcing.

Which of the following is not true?

Name three types of program fraud.

What fraud detection responsibilities are imposed on auditors by the Sarbanes-Oxley Act?

What is a mirrored data center?

What approach to the design and assessment of controls is recommended by PCAOB Auditing Standard No.5?

Scavenging is a form of fraud in which the perpetrator uses a computer program to search for key terms in a database and then steal the data.

Transaction cost economics (TCE)theory suggests that firms should outsource specific noncore IT assets.

The Information System: an Accountants Perspective

Introduction to Transaction Processing

Ethics,fraud,and Internal Control

The Revenue Cycle

The Expenditure Cycle Part I: Purchases and Cash Disbursements Procedures

The Expenditure Cycle Part II: Payroll Processing and Fixed Asset Procedures

The Conversion Cycle

Financial Reporting,and Management Reporting Systems

Database Management Systems

The Rea Approach to Business Process Modeling

Enterprise Resource Planning Systems

Electronic Commerce Systems

Managing the Systems Development Life Cycle

Auditing It Controls Part II: Security and Access

Auditing It Controls Part III: Systems Development, program Changes, and Application Auditing

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Exam 14: Auditing It Controls Part I: Sarbanes-Oxley and It Governance

All of the following are control risks associated with the distributed data processing structure except

Explain how general controls impact transaction integrity and the financial reporting process.

Inherent risk

Which of the following is not a generally accepted auditing standard?

Which of the following is true?

Does a qualified opinion on management's assessment of internal controls over the financial reporting system necessitate a qualified opinion on the financial statements? Explain.

What is a disaster recovery plan?

What are the components of audit risk?

The PCAOB's Auditing Standard No.5 specifically requires auditors to understand transaction flows in designing their test of controls.What steps does this entail?

Compare and contrast the following disaster recovery options: empty shell,recovery operations center,and internally provided backup.Rank them from most risky to least risky,as well as most costly to least costly.

Discuss the key features of Section 404 of the Sarbanes-Oxley Act.

What are the objectives of application controls?

Briefly outline transaction cost economics as it relates to IT outsourcing.

Which of the following is not true?

Name three types of program fraud.

What fraud detection responsibilities are imposed on auditors by the Sarbanes-Oxley Act?

What is a mirrored data center?

What approach to the design and assessment of controls is recommended by PCAOB Auditing Standard No.5?

Scavenging is a form of fraud in which the perpetrator uses a computer program to search for key terms in a database and then steal the data.

Transaction cost economics (TCE)theory suggests that firms should outsource specific noncore IT assets.

The Information System: an Accountants Perspective

Introduction to Transaction Processing

Ethics,fraud,and Internal Control

The Revenue Cycle

The Expenditure Cycle Part I: Purchases and Cash Disbursements Procedures

The Expenditure Cycle Part II: Payroll Processing and Fixed Asset Procedures

The Conversion Cycle

Financial Reporting,and Management Reporting Systems

Database Management Systems

The Rea Approach to Business Process Modeling

Enterprise Resource Planning Systems

Electronic Commerce Systems

Managing the Systems Development Life Cycle

Auditing It Controls Part II: Security and Access

Auditing It Controls Part III: Systems Development, program Changes, and Application Auditing

Filters