Question 1

Andile Uzoma is the CEO of Chibuzo Incorporated.The board of directors has recently demanded that they receive more assurance that Chibuzo Incorporated is operating in an efficient,effective manner.Which type of audit would best suit the demands of the board of directors?

Accepted Answer

A) Financial audit. 
B) Information system audit. 
C) Operational audit. 
D) Sustainability audit.

Question 2

________ can determine whether the necessary control procedures are in place.

Accepted Answer

A) A systems review 
B) A systems overhaul 
C) Tests of controls 
D) Both B and C

Question 3

One of the advantages of CAATS software is that it can replace the auditor's judgment in specific areas of an audit.

Accepted Answer

A) True 
 B)False

Question 4

An auditor sets an embedded audit module to flag all credit transactions in excess of $5,000.The flag causes the system state to be recorded before and after each transaction is processed.The auditor is using

Accepted Answer

A) audit hooks. 
B) an integrated test facility. 
C) the snapshot technique. 
D) a system control audit review file.

Question 5

Control risk is defined as the

Accepted Answer

A) susceptibility to material risk in the absence of controls. 
B) risk that a material misstatement will get through the internal control structure and into the financial statements. 
C) risk that auditors and their audit procedures will not detect a material error or misstatement. 
D) risk auditors will not be given the appropriate documents and records by management who wants to control audit activities and procedures.

Question 6

Software that identifies unexecuted program code is called

Accepted Answer

A) automated flowcharting programs. 
B) automated decision table programs. 
C) mapping programs. 
D) tracing program.

Question 7

An auditor finds that employee 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.

Question 8

An auditor might use ________ to convert data from several sources into a single common format.

Accepted Answer

A) Windows Media Converter 
B) concurrent audit technique 
C) computer assisted audit techniques software 
D) Adobe Professional

Question 9

Which of the following is an information systems audit review procedure?

Accepted Answer

A) Verify the extent and effectiveness of encryption. 
B) Inspect computer sites. 
C) Test assignment procedures for user IDs. 
D) Observe the preparation of backup files.

Question 10

The ________ procedure for auditing computer process controls uses a hypothetical series of valid and invalid transactions.

Accepted Answer

A) concurrent audit techniques 
B) test data processing 
C) integrated test facility 
D) dual process

Question 11

When doing an information systems audit,auditors must review and evaluate the program development process.What errors or fraud could occur during the program development process?

Accepted Answer

The answer of When doing an information systems audit,auditors must...

Question 12

Audit tests and procedures traditionally have been performed on a sample basis.Do options exist for auditors to test significantly more (or all)transactions?

Accepted Answer

The answer of Audit tests and procedures traditionally have been...

Question 13

Explain why the auditor's role in program development and acquisition should be limited.

Accepted Answer

The answer of Explain why the auditor's role in program...

Question 14

Inserting a dummy entity in a company's system; processing test transactions to update that will not affect actual records is an example of

Accepted Answer

A) integrated test facility. 
B) snapshot technique. 
C) system control audit review file. 
D) audit hooks.

Question 15

An auditor sets an embedded audit module to flag questionable online transactions,display information about the transaction on the auditor's computer,and send a text message to the auditor's cell phone.The auditor is using

Accepted Answer

A) the snapshot technique. 
B) a system control audit review file. 
C) audit hooks. 
D) continuous and intermittent simulation.

Question 16

Auditors have the ability to change inherent risk.

Accepted Answer

A) True 
 B)False

Question 17

Describe the disadvantages of test data processing.

Accepted Answer

The answer of Describe the disadvantages of test data processing....

Question 18

The ________ audit is concerned with the economical and efficient use of resources and the accomplishment of established goals and objectives.

Accepted Answer

A) financial 
B) informational 
C) information systems 
D) operational

Question 19

The scope of a(n)________ audit encompasses all aspects of systems management.

Accepted Answer

A) operational 
B) information systems 
C) financial 
D) internal control

Question 20

An auditor sets an embedded audit module to selectively monitor transactions.Selected transactions are then reprocessed independently,and the results are compared with those obtained by the normal system processing.The auditor is using

Accepted Answer

A) an integrated test facility. 
B) the snapshot technique. 
C) a system control audit review file. 
D) continuous and intermittent simulation.

Exam 11: Auditing Computer-Based Information Systems