Question 1

All of the following are examples of security controls except for?

Accepted Answer

A) Biometric access controls 
B) Swipe Key access controls 
C) Online firewall protection controls 
D) All of the Above are examples of security controls 
A) Biometric access controls 
B) Swipe Key access controls 
C) Online firewall protection controls 
D) All of the Above are examples of security controls D

Question 2

Which of the following types of audits is most likely to be conducted for the purpose of identifying areas for cost savings?

Accepted Answer

A) Financial Statement Audits 
B) Operational Audits 
C) Regulatory Audits 
D) Compliance Audits 
A) Financial Statement Audits 
B) Operational Audits 
C) Regulatory Audits 
D) Compliance Audits B

Question 3

In order to properly carry out an audit, accountants collect and evaluate proof of procedures, transactions, and / or account balances, and compare the information with established criteria.

Accepted Answer

A) True 
 B)False  True

Question 4

The main difference between substantive testing and controls testing is:

Accepted Answer

A) Substantive testing verifies whether information is correct, whereas control tests determine whether the information is managed under a system that promotes correctness. 
B) Substantive testing determines whether the information is managed under a system that promotes correctness, whereas Control testing verifies whether information is correct. 
C) Substantive testing goes further in depth into the internal controls of a company, whereas controls testing just identifies which controls need further review. 
D) Substantive testing identifies which controls need further review, whereas controls testing goes further in depth into the internal controls of a company. 
A) Substantive testing verifies whether information is correct, whereas control tests determine whether the information is managed under a system that promotes correctness. 
B) Substantive testing determines whether the information is managed under a system that promotes correctness, whereas Control testing verifies whether information is correct. 
C) Substantive testing goes further in depth into the internal controls of a company, whereas controls testing just identifies which controls need further review. 
D) Substantive testing identifies which controls need further review, whereas controls testing goes further in depth into the internal controls of a company.

Question 5

There is not much room for professional judgement when performing audits, as a result of the detailed guidance provided by organizations, such as the PCAOB.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is the most significant disadvantage of auditing around the computer rather than through the computer?

Accepted Answer

A) The time involved in testing processing controls is significant. 
B) The cost involved in testing processing controls is significant. 
C) A portion of the audit trail is not tested. 
D) The technical expertise required to test processing controls is extensive. 
A) The time involved in testing processing controls is significant. 
B) The cost involved in testing processing controls is significant. 
C) A portion of the audit trail is not tested. 
D) The technical expertise required to test processing controls is extensive.

Question 7

When PCs are used for accounting instead of mainframes or client-server system, they face a greater risk of loss due to which of the following:

Accepted Answer

A) Authorized access 
B) Segregation of duties 
C) Lack of backup control 
D) All of the above 
A) Authorized access 
B) Segregation of duties 
C) Lack of backup control 
D) All of the above

Question 8

Audit procedures designed to evaluate both general controls and application controls are referred to as:

Accepted Answer

A) Substantive Tests 
B) Audit Planning 
C) IT Auditing 
D) Test of Controls 
A) Substantive Tests 
B) Audit Planning 
C) IT Auditing 
D) Test of Controls

Question 9

The responsibility for operations, compliance, and financial reporting lies with the auditors.

Accepted Answer

A) True 
 B)False

Question 10

Generalized audit software can be used to:

Accepted Answer

A) Examine the consistency of data maintained on computer files. 
B) Perform audit tests of multiple computer files concurrently. 
C) Verify the processing logic of operating system software. 
D) Process test data against master files that contain both real and fictitious data. 
A) Examine the consistency of data maintained on computer files. 
B) Perform audit tests of multiple computer files concurrently. 
C) Verify the processing logic of operating system software. 
D) Process test data against master files that contain both real and fictitious data.

Question 11

The role of the auditors is to analyze the underlying facts to decide whether information provided by management is fairly presented.Auditors design ____1_____ to analyze information in order to determine whether ____2_____ is/are valid.

Accepted Answer

A) 1=audit objectives; 2=management's assertions 
B) 1=audit tests; 2=audit objectives 
C) 1=audit tests; 2=audit evidence 
D) 1=audit tests; 2=management's assertions 
A) 1=audit objectives; 2=management's assertions 
B) 1=audit tests; 2=audit objectives 
C) 1=audit tests; 2=audit evidence 
D) 1=audit tests; 2=management's assertions

Question 12

One of the most effective ways a client can protect its computer system is to place physical controls in the computer center.Physical controls include all of the following, except:

Accepted Answer

A) Proper temperature control 
B) Locks 
C) Security guards 
D) Cameras 
A) Proper temperature control 
B) Locks 
C) Security guards 
D) Cameras

Question 13

There are four primary phases of the IT audit.Which of the following is not one of those phases?

Accepted Answer

A) Planning 
B) Evidence Audit 
C) Tests of Controls 
D) Substantive Tests 
A) Planning 
B) Evidence Audit 
C) Tests of Controls 
D) Substantive Tests

Question 14

An important requirement for CPA firms is that they must be personally involved with the management of the firm that is being audited.

Accepted Answer

A) True 
 B)False

Question 15

When a client company is using IT outsourcing, and that service center has its own auditors who report on internal control, the third-party report from the independent auditors) cannot be used as audit evidence without the auditor performing an adequate amount of compliance testing.

Accepted Answer

A) True 
 B)False

Question 16

A sample is random when each item in the population has an equal chance of being chosen.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is not one of the identified causes of information risk?

Accepted Answer

A) Audited information 
B) Remote information 
C) Complexity of data 
D) Preparer motive 
A) Audited information 
B) Remote information 
C) Complexity of data 
D) Preparer motive

Question 18

This organization, established by the Sarbanes-Oxley Act, was organized in 2003 for the purpose of establishing auditing standards for public companies.

Accepted Answer

A) Auditing Standards Board 
B) Public Company Accounting Oversight Board 
C) International Audit Practices Committee 
D) Information Systems Audit and Control Association 
A) Auditing Standards Board 
B) Public Company Accounting Oversight Board 
C) International Audit Practices Committee 
D) Information Systems Audit and Control Association

Question 19

This phase of auditing occurs when the auditors evaluate all the evidence that has been accumulated and makes a conclusion based on that evidence.

Accepted Answer

A) Tests of Controls 
B) Audit Planning 
C) Audit Completion / Reporting 
D) Substantive Testing 
A) Tests of Controls 
B) Audit Planning 
C) Audit Completion / Reporting 
D) Substantive Testing

Question 20

Techniques used for gathering evidence include all of the following, except:

Accepted Answer

A) Physical examination of assets or supporting documentation 
B) Observing activities 
C) Adequate planning and supervision 
D) Analyzing financial relationships 
A) Physical examination of assets or supporting documentation 
B) Observing activities 
C) Adequate planning and supervision 
D) Analyzing financial relationships

All of the following are examples of security controls except for?

Which of the following types of audits is most likely to be conducted for the purpose of identifying areas for cost savings?

In order to properly carry out an audit, accountants collect and evaluate proof of procedures, transactions, and / or account balances, and compare the information with established criteria.

The main difference between substantive testing and controls testing is:

There is not much room for professional judgement when performing audits, as a result of the detailed guidance provided by organizations, such as the PCAOB.

Which of the following is the most significant disadvantage of auditing around the computer rather than through the computer?

When PCs are used for accounting instead of mainframes or client-server system, they face a greater risk of loss due to which of the following:

Audit procedures designed to evaluate both general controls and application controls are referred to as:

The responsibility for operations, compliance, and financial reporting lies with the auditors.

Generalized audit software can be used to:

The role of the auditors is to analyze the underlying facts to decide whether information provided by management is fairly presented.Auditors design __1_ to analyze information in order to determine whether 2___ is/are valid.

One of the most effective ways a client can protect its computer system is to place physical controls in the computer center.Physical controls include all of the following, except:

There are four primary phases of the IT audit.Which of the following is not one of those phases?

An important requirement for CPA firms is that they must be personally involved with the management of the firm that is being audited.

When a client company is using IT outsourcing, and that service center has its own auditors who report on internal control, the third-party report from the independent auditors) cannot be used as audit evidence without the auditor performing an adequate amount of compliance testing.

A sample is random when each item in the population has an equal chance of being chosen.

Which of the following is not one of the identified causes of information risk?

This organization, established by the Sarbanes-Oxley Act, was organized in 2003 for the purpose of establishing auditing standards for public companies.

This phase of auditing occurs when the auditors evaluate all the evidence that has been accumulated and makes a conclusion based on that evidence.

Techniques used for gathering evidence include all of the following, except:

Introduction to AIS

Foundational Concepts of the AIS

Fraud, Ethics, and Internal Control

Internal Controls and Risks in IT Systems

IT Governance

Erp Systems

Revenue and Cash Collection Processes

Expenditures Processes and Controls - Purchases

Expenditures Processes and Controls Payroll and Fixed Assets

Conversion Processes and Controls

Administrative Processes and Controls

Data and Databases

Ecommerce and Ebusiness

Filters

Exam 7: Auditing Information Technology Bases Processes

All of the following are examples of security controls except for?

Which of the following types of audits is most likely to be conducted for the purpose of identifying areas for cost savings?

In order to properly carry out an audit, accountants collect and evaluate proof of procedures, transactions, and / or account balances, and compare the information with established criteria.

The main difference between substantive testing and controls testing is:

There is not much room for professional judgement when performing audits, as a result of the detailed guidance provided by organizations, such as the PCAOB.

Which of the following is the most significant disadvantage of auditing around the computer rather than through the computer?

When PCs are used for accounting instead of mainframes or client-server system, they face a greater risk of loss due to which of the following:

Audit procedures designed to evaluate both general controls and application controls are referred to as:

The responsibility for operations, compliance, and financial reporting lies with the auditors.

Generalized audit software can be used to:

The role of the auditors is to analyze the underlying facts to decide whether information provided by management is fairly presented.Auditors design ____1_____ to analyze information in order to determine whether ____2_____ is/are valid.

One of the most effective ways a client can protect its computer system is to place physical controls in the computer center.Physical controls include all of the following, except:

There are four primary phases of the IT audit.Which of the following is not one of those phases?

An important requirement for CPA firms is that they must be personally involved with the management of the firm that is being audited.

When a client company is using IT outsourcing, and that service center has its own auditors who report on internal control, the third-party report from the independent auditors) cannot be used as audit evidence without the auditor performing an adequate amount of compliance testing.

A sample is random when each item in the population has an equal chance of being chosen.

Which of the following is not one of the identified causes of information risk?

This organization, established by the Sarbanes-Oxley Act, was organized in 2003 for the purpose of establishing auditing standards for public companies.

This phase of auditing occurs when the auditors evaluate all the evidence that has been accumulated and makes a conclusion based on that evidence.

Techniques used for gathering evidence include all of the following, except:

Introduction to AIS

Foundational Concepts of the AIS

Fraud, Ethics, and Internal Control

Internal Controls and Risks in IT Systems

IT Governance

Erp Systems

Revenue and Cash Collection Processes

Expenditures Processes and Controls - Purchases

Expenditures Processes and Controls Payroll and Fixed Assets

Conversion Processes and Controls

Administrative Processes and Controls

Data and Databases

Ecommerce and Ebusiness

Filters

The role of the auditors is to analyze the underlying facts to decide whether information provided by management is fairly presented.Auditors design __1_ to analyze information in order to determine whether 2___ is/are valid.