Exam 12: The Impact of Information Technology on the Audit Process

The audit procedure which is least useful in gathering evidence on significant computer processes is:

Which of the following statements is correct?

Briefly define general controls and application controls.

Programmers should be allowed access to:

The objective of the computer audit technique known as the test data approach is to determine whether the client's computer programs can correctly process valid and invalid transactions.

Controls which are designed to assure that the information processed by the computer is authorized, complete, and accurate are called:

The test data approach requires the auditor to insert an audit module in the client's application system to test how transaction data is processed.

Identify the six categories of general controls and give one example of each.

Parallel testing is more expensive than pilot testing.

One common use of generalized audit software is to help the auditor identify weaknesses in the client's IT control procedures.

Identify the three categories of application controls, and give one example of each.

In IT systems, if general controls are effective, it increases the auditor's ability to rely on application controls to reduce control risk.

In an IT-intensive environment, most processing controls are:

One category of general controls is physical and online security. Describe the control and give at least three examples of implementation of the control.

When performing a parallel simulation the auditor may use generalized audit software (GAS). Which of the following is not seen as an advantage to using GAS?

When using the test data approach:

Application controls vary across the IT system. To gain an understanding of internal control for a private company, the auditor must evaluate the application controls for every:

When auditing a client whose information is processed by an outside service provider, it is not acceptable for the auditor to rely on the audit report of another independent auditor who has previously tested the internal controls of the service provider, rather than testing the service provider's controls himself or herself.

A control that relates to all parts of the IT system is called a(n):

Which of the following computer-assisted auditing techniques inserts an audit module in the client's application system to identify specific types of transactions?