Question 1

All of the following are recommended features of a fire protection system for a computer center except

Accepted Answer

A)  clearly marked exits 
B)  an elaborate water sprinkler system 
C)  manual fire extinguishers in strategic locations 
D)  automatic and manual alarms in strategic locations 
A)  clearly marked exits 
B)  an elaborate water sprinkler system 
C)  manual fire extinguishers in strategic locations 
D)  automatic and manual alarms in strategic locations

Question 2

Explain the outsourcing risk of failure to perform.

Accepted Answer

Once a client firm has outsourced specif

Question 3

Tests of controls include

Accepted Answer

A)  confirming accounts receivable 
B)  counting inventory 
C)  completing questionnaires 
D)  counting cash 
A)  confirming accounts receivable 
B)  counting inventory 
C)  completing questionnaires 
D)  counting cash

Question 4

How do the tests of controls affect substantive tests?

Accepted Answer

Tests of controls are used by the audito

Question 5

For disaster recovery purposes,what criteria are used to identify an application or data as critical?

Accepted Answer

Critical application and files

Question 6

Which of the following is not an essential feature of a disaster recovery plan?

Accepted Answer

A)  off-site storage of backups 
B)  computer services function 
C)  second site backup 
D)  critical applications identified 
A)  off-site storage of backups 
B)  computer services function 
C)  second site backup 
D)  critical applications identified

Question 7

Substantive testing techniques provide information about the accuracy and completeness of an application's processes.

Accepted Answer

A) True 
 B)False

Question 8

A qualified opinion on management's assessment of internal controls over the financial reporting system necessitates a qualified opinion on the financial statements?

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is NOT a requirement in management's report on the effectiveness of internal controls over financial reporting?

Accepted Answer

A)  A statement of management's responsibility for establishing and maintaining adequate internal control user satisfaction. 
B)  A statement that the organization's internal auditors has issued an attestation report on management's assessment of the company's internal controls. 
C)  A statement identifying the framework used by management to conduct their assessment of internal controls. 
D)  An explicit written conclusion as to the effectiveness of internal control over financial reporting. 
A)  A statement of management's responsibility for establishing and maintaining adequate internal control user satisfaction. 
B)  A statement that the organization's internal auditors has issued an attestation report on management's assessment of the company's internal controls. 
C)  A statement identifying the framework used by management to conduct their assessment of internal controls. 
D)  An explicit written conclusion as to the effectiveness of internal control over financial reporting.

Question 10

When planning the audit,information is gathered by all of the following methods except

Accepted Answer

A)  completing questionnaires 
B)  interviewing management 
C)  observing activities 
D)  confirming accounts receivable 
A)  completing questionnaires 
B)  interviewing management 
C)  observing activities 
D)  confirming accounts receivable

Question 11

Describe how a Corporate Computer Services Function can overcome some of the problems associated with distributed data processing.

Accepted Answer

The Corporate Computer Services Function

Question 12

Adequate backups will protect against all of the following except

Accepted Answer

A)  natural disasters such as fires 
B)  unauthorized access 
C)  data corruption caused by program errors 
D)  system crashes 
A)  natural disasters such as fires 
B)  unauthorized access 
C)  data corruption caused by program errors 
D)  system crashes

Question 13

Control risk is

Accepted Answer

A)  the probability that the auditor will render an unqualified opinion on financial statements that are materially misstated 
B)  associated with the unique characteristics of the business or industry of the client 
C)  the likelihood that the control structure is flawed because controls are either absent or inadequate to prevent or detect errors in the accounts 
D)  the risk that auditors are willing to take that errors not detected or prevented by the control structure will also not be detected by the auditor 
A)  the probability that the auditor will render an unqualified opinion on financial statements that are materially misstated 
B)  associated with the unique characteristics of the business or industry of the client 
C)  the likelihood that the control structure is flawed because controls are either absent or inadequate to prevent or detect errors in the accounts 
D)  the risk that auditors are willing to take that errors not detected or prevented by the control structure will also not be detected by the auditor

Question 14

The same internal control objectives apply to manual and computer-based information systems.

Accepted Answer

A) True 
 B)False

Question 15

Corporate management (including the CEO)must certify monthly and annually their organization's internal controls over financial reporting.

Accepted Answer

A) True 
 B)False

Question 16

Discuss the key features of Section 302 of the Sarbanes-Oxley Act.

Accepted Answer

Section 302 requires corporate managemen

Question 17

What primary IT functions must be separated in a centralized firm?

Accepted Answer

separate systems development f

Question 18

Substantive tests include

Accepted Answer

A)  examining the safety deposit box for stock certificates 
B)  reviewing systems documentation 
C)  completing questionnaires 
D)  observation 
A)  examining the safety deposit box for stock certificates 
B)  reviewing systems documentation 
C)  completing questionnaires 
D)  observation

Question 19

What is program fraud?

Accepted Answer

Program fraud involves making

Question 20

Some companies separate systems analysis from programming/program maintenance.All of the following are control weaknesses that may occur with this organizational structure except

Accepted Answer

A)  systems documentation is inadequate because of pressures to begin coding a new program before documenting the current program 
B)  illegal lines of code are hidden among legitimate code and a fraud is covered up for a long period of time 
C)  a new systems analyst has difficulty in understanding the logic of the program 
D)  inadequate systems documentation is prepared because this provides a sense of job security to the programmer 
A)  systems documentation is inadequate because of pressures to begin coding a new program before documenting the current program 
B)  illegal lines of code are hidden among legitimate code and a fraud is covered up for a long period of time 
C)  a new systems analyst has difficulty in understanding the logic of the program 
D)  inadequate systems documentation is prepared because this provides a sense of job security to the programmer

All of the following are recommended features of a fire protection system for a computer center except

Explain the outsourcing risk of failure to perform.

Tests of controls include

How do the tests of controls affect substantive tests?

For disaster recovery purposes,what criteria are used to identify an application or data as critical?

Which of the following is not an essential feature of a disaster recovery plan?

Substantive testing techniques provide information about the accuracy and completeness of an application's processes.

A qualified opinion on management's assessment of internal controls over the financial reporting system necessitates a qualified opinion on the financial statements?

Which of the following is NOT a requirement in management's report on the effectiveness of internal controls over financial reporting?

When planning the audit,information is gathered by all of the following methods except

Describe how a Corporate Computer Services Function can overcome some of the problems associated with distributed data processing.

Adequate backups will protect against all of the following except

Control risk is

The same internal control objectives apply to manual and computer-based information systems.

Corporate management (including the CEO)must certify monthly and annually their organization's internal controls over financial reporting.

Discuss the key features of Section 302 of the Sarbanes-Oxley Act.

What primary IT functions must be separated in a centralized firm?

Substantive tests include

What is program fraud?

Some companies separate systems analysis from programming/program maintenance.All of the following are control weaknesses that may occur with this organizational structure except

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

General Ledger,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

Construct,deliver,and Maintain Systems Projects

IT Controls Part II: Security and Access

IT Controls Part III: Systems Development, program Changes, and Application Controls

Filters

Exam 15: IT Controls Part I: Sarbanes-Oxley and It Governance

All of the following are recommended features of a fire protection system for a computer center except

Explain the outsourcing risk of failure to perform.

Tests of controls include

How do the tests of controls affect substantive tests?

For disaster recovery purposes,what criteria are used to identify an application or data as critical?

Which of the following is not an essential feature of a disaster recovery plan?

Substantive testing techniques provide information about the accuracy and completeness of an application's processes.

A qualified opinion on management's assessment of internal controls over the financial reporting system necessitates a qualified opinion on the financial statements?

Which of the following is NOT a requirement in management's report on the effectiveness of internal controls over financial reporting?

When planning the audit,information is gathered by all of the following methods except

Describe how a Corporate Computer Services Function can overcome some of the problems associated with distributed data processing.

Adequate backups will protect against all of the following except

Control risk is

The same internal control objectives apply to manual and computer-based information systems.

Corporate management (including the CEO)must certify monthly and annually their organization's internal controls over financial reporting.

Discuss the key features of Section 302 of the Sarbanes-Oxley Act.

What primary IT functions must be separated in a centralized firm?

Substantive tests include

What is program fraud?

Some companies separate systems analysis from programming/program maintenance.All of the following are control weaknesses that may occur with this organizational structure except

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

General Ledger,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

Construct,deliver,and Maintain Systems Projects

IT Controls Part II: Security and Access

IT Controls Part III: Systems Development, program Changes, and Application Controls

Filters