Deck 11: Emerging Technologies: Blockchain and Ai Automation

Question 1

As the CFO of a small, private retail company in Los Angeles, you often hire interns from the universities near you as accounting clerks throughout the year. In general, the interns are not hired as full-time employees. Are you concerned about security knowing that almost all interns love to use instant messaging, Facebook, Google 1 , or Twitter at work? Why or why not?

Answer 1

Importance of information technology in today's business
With the change in business environment the methods and techniques of doing business has also gone through a diverse changes. Information technology has touched every aspect of human as well as business life. Business procedures have also not escaped from the reach of information technology. The importance of information technology in the business environment is increasing day by day.
As the CEO of a company, hires interns from many universities in the city where the business is located. If the company hires the student as interns and not full time employees it is for sure that the CEO will be concerned about the security of his company. The use of instant messages and social networking sites has been increased in a significant level.
It is very obvious for a CEO to be worried about the use of social networking sites by the interns hired by him. As all the students are hired as interns and not full time employees thus the student does not have any stake in the company and will be less concerned about the security of the company.
Thus it can be concluded that the concern of the CEO in the given question is valid and the risk of threats is high in this case.

Question 2

Use a search engine to identify a few computer-assisted audit techniques (CAATs).

Answer 2

Computer Assisted Audit Techniques:
The uses of computer techniques for IT audit processes by the auditors are termed as computer assisted audit techniques or tools. These tools are used by the auditors for performing timely, effective and efficient audits of an organization these helps in reducing the span of an audit.
Generally two categories of Computer Assisted Audit Techniques that are used by an auditor are mentioned below:
1. Audit software : audit software is used by an auditor to interrogate a client's system it can be software. The main advantage of this software is that it can be used to scrutinize large data which is not possible manually. This program helps in storing the data and results arising from it can be used for further investigation.
2. Test data : it involves the submitting of dummy data into the computer system of clients to insure that the system processes the data correctly. This prevents and corrects any misstatement. The main objective of this is to test the application controls operation within a computer system.

Question 3

Which of the following is not a task performed by an operating system? a. Translate high-level languages to machine-level language
B) Manage job scheduling and multiprogramming
C) Support applications and facilitate their access to specified resources
D) Provide controlled access to data and processes data

Answer 3

Operating System
It refers to the system that manages the software resources and the computer hardware. It also provides services for all the computer programs. The computer, its hardware and other programs cannot function without an operating system.
For the option which depicts the task that can be performed on the part of operating System , all the options have considered as:
An operating system enables the decoding of higher languages into machine languages. This helps the computer to understand the high level language which can be opted by the user, so that the computer can perform its function easily. The computer only understands the binary language and operating system helps in converting the user language into the binary or simpler language.
Hence, the option a is incorrect as it can be considered as a vital task of the operating system.
An operating system provides the function of multi-programming and job scheduling. It also offers the facility to perform various functions in different programs at the same time. Through it, the user can also schedule his task for the future.
Hence, the option b is also incorrect as it can be considered as a significant task of the operating system.
An operating system supports applications and enables their access to identified sources. It can be termed as a software which can allow the user to have an access to the specified sources.
Hence, the option c is incorrect as it can be considered as an essential task of the operating system.
An operating system allows the user to access the data, but it does not provide any well-organized access to the data. It does not put any restriction in the processing of data. Hence,
is correct as the control in respect to data access cannot be considered as a task of the operating system.

Question 4

(CMA adapted) As chief executive auditor, Mallory Williams heads the internal audit group of a manufacturing company in southern Texas. She would like to purchase a CATT tool to assist her group in conducting internal audit functions. As an intern, you are asked to evaluate and prepare a report describing the audit purpose facilitated and the procedural steps followed for the following CATTs:
• Generalized audit software.
• Integrated test facility.
• Flowcharting (such as Microsoft Visio).
• Parallel simulation and modeling.

Question 5

Compare and contrast continuous monitoring and continuous auditing.

Question 6

Managers at a consumer products company purchased personal computer software from only recognized vendors and prohibited employees from installing nonauthorized software on their personal computers by enforcing a new end-user computing policy. To minimize the likelihood of computer viruses infecting any of its systems, the company should also: a. Restore infected systems with authorized versions
B) Recompile infected programs from source code backups
C) Institute program change control procedures
D) Test all new software on a stand-alone personal computer

Question 7

What is the main purpose of using firewalls?

Question 8

Unauthorized alteration of records in a database system can be prevented by employing: a. Key verification
B) Computer matching
C) Regular review of audit trails
D) Database access controls

Question 9

What are the main reasons for using a VPN?

Question 10

Are there differences among hubs, switches, and routers?

Question 11

A local area network (LAN) is best described as a(n): a. Computer system that connects computers of all sizes, workstations, terminals, and other devices within a limited proximity
B) System that allows computer users to meet and share ideas and information
C) Electronic library containing millions of items of data that can be reviewed, retrieved, and analyzed
D) Method to offer specialized software, hardware, and data-handling techniques that improve effectiveness and reduce costs

Question 12

An organization is planning to replace its wired networks with wireless networks. Which of the following approaches provides the most secured wireless network? a. Implement wired equivalent privacy (WEP) protocol
B) Allow access to only authorized media access control (MAC) addresses
C) Disable the network interface card (NIC)
D) Implement wi-fi protected access (WPA2)

Question 13

(CIA adapted) As an internal auditor, you have been assigned to evaluate the controls and operation of a computer payroll system. To test the computer systems and programs, you submit independently created test transactions with regular data in a normal production run. Identify advantages and disadvantages of this technique.

Question 14

Identify a few critical security issues in using a wireless network.

Question 15

What is a data warehouse? Is it related to cloud computing?

Question 16

The vice president of human resources has requested an audit to identify payroll overpayments for the previous year. Which would be the best audit technique to use in this situation? a. Test data
B) Generalized audit software
C) Integrated test facility
D) Embedded audit module

Question 17

Which of the following network components is set up to serve as a security measure that prevents unauthorized traffic between different segments of the network? a. Switch
B) Router
C) Firewall
D) Virtual local area networks (VLANs)

Question 18

Which of following statements about CAATs is not correct? a. Parallel simulation attempts to simulate or reproduce the firm's actual processing results.
B) The test data technique uses a set of hypothetical transactions to examine the programmed checks and program logic in programs.
C) The integrated test facility is a programmed module or segment that is inserted into an application program to monitor and collect data based on daily transactions.
D) The embedded audit module may require the auditor to have a good working knowledge of computer programming and a solid understanding of IT risks that may exist in a system.

Question 19

Auditing an accounting information system requires knowledge and skills in both accounting and computers. However, most auditors may not have sufficient expertise in the technical side of computing and information systems. Given today's business environment, how much computer- and information systems-related knowledge and skills must an auditor have to be effective in performing auditing?

Question 20

Which of the following audit techniques should an IS auditor use to detect duplicate invoice records within an invoice master file? a. Test data
B) Generalized audit software
C) Integrated test facility
D) Embedded audit module

Question 21

We often use regression analyses in data mining. Are accountants required to understand data mining? Why?

Question 22

Unauthorized alteration of records in a database system would impair which of the following components of the CIA tripod? a. Confidentiality
B) Integrity
C) Availability
D) Authorization