Exam 7: Auditing Information Technology Bases Processes

Within the cloud computing environment, the service provider is responsible to make sure that all relevant risks have been identified and controlled.Because of this, the company using the cloud computing does not need to repeat that evaluation.

(True/False)

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Question 21

A large part of the work performed by an auditor in the audit planning process is the gathering of evidence about the company's internal controls.This can be completed in any of the following ways, except:

(Multiple Choice)

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Question 22

This type of auditor specializes in the information systems assurance, control, and security.They may work for CPA firms, government agencies, or with the internal audit group.

(Multiple Choice)

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Question 23

The only person who can perform a financial statement audit of a publicly traded company is a government auditor who has extensive knowledge of generally accepted accounting principles.

(True/False)

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Question 24

Which of the following scenarios does NOT impair the independence of a CPA firm from its client?

(Multiple Choice)

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Question 25

Auditors do not need to be experts on the intricacies of computer systems but they do need to understand the impact of IT on their clients' accounting systems and internal controls.

(True/False)

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Question 26

Regardless of the results of the control testing, some level of substantive testing must take place.

(True/False)

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Question 27

The primary objective of compliance testing in a financial statement audit is to determine whether:

(Multiple Choice)

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Question 28

All types of auditors should have knowledge about technology-based systems so that they can properly audit IT systems.

(True/False)

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Question 29

When an auditor is engaged to audit a company that uses cloud computing, the auditor must rely on the SOC reports provided by the service company's auditors.

(True/False)

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Question 30

Which of the following audit procedures is most likely to be performed during the planning phase of the audit?

(Multiple Choice)

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Question 31

The management assertion related to valuation of transactions and account balances would include all of the following, except:

(Multiple Choice)

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Question 32

The existence of IT-based business processes, that result in the details of the transactions being entered directly into the computer system, increases the likelihood of the loss or alternation of data due to all of the following, except:

(Multiple Choice)

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Question 33

A type of assurance services that involves accumulating and analyzing support for the information provided by management is called an:

(Multiple Choice)

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Question 34

This type of application control is performed to verify the correctness of information entered into software programs.Auditors are concerned about whether errors are being prevented and detected during this stage of data processing.

(Multiple Choice)

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(92)

Question 35

The auditor's understanding of internal controls provides the basis for designing appropriate audit tests to be used in the remaining phases of the audit.

(True/False)

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(73)

Question 36

The audit planning process is unlikely to vary if the company has adopted IFRS, or is in the process of convergence.

(True/False)

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Question 37

Auditors may send text messages through a company's system to find out whether encryption of private information is occurring properly.In addition, special software programs are available to help auditors identify weak points in a company's security measures.These are examples of:

(Multiple Choice)

4.9/5

(74)

Question 38

During substantive testing, if material misstatements have been found to exist, which of the following actions should be taken next?

(Multiple Choice)

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(71)

Question 39

Risk assessment is a process designed to:

(Multiple Choice)

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Question 40

Showing 21 - 40 of 162

Within the cloud computing environment, the service provider is responsible to make sure that all relevant risks have been identified and controlled.Because of this, the company using the cloud computing does not need to repeat that evaluation.

A large part of the work performed by an auditor in the audit planning process is the gathering of evidence about the company's internal controls.This can be completed in any of the following ways, except:

This type of auditor specializes in the information systems assurance, control, and security.They may work for CPA firms, government agencies, or with the internal audit group.

The only person who can perform a financial statement audit of a publicly traded company is a government auditor who has extensive knowledge of generally accepted accounting principles.

Which of the following scenarios does NOT impair the independence of a CPA firm from its client?

Auditors do not need to be experts on the intricacies of computer systems but they do need to understand the impact of IT on their clients' accounting systems and internal controls.

Regardless of the results of the control testing, some level of substantive testing must take place.

The primary objective of compliance testing in a financial statement audit is to determine whether:

All types of auditors should have knowledge about technology-based systems so that they can properly audit IT systems.

When an auditor is engaged to audit a company that uses cloud computing, the auditor must rely on the SOC reports provided by the service company's auditors.

Which of the following audit procedures is most likely to be performed during the planning phase of the audit?

The management assertion related to valuation of transactions and account balances would include all of the following, except:

The existence of IT-based business processes, that result in the details of the transactions being entered directly into the computer system, increases the likelihood of the loss or alternation of data due to all of the following, except:

A type of assurance services that involves accumulating and analyzing support for the information provided by management is called an:

This type of application control is performed to verify the correctness of information entered into software programs.Auditors are concerned about whether errors are being prevented and detected during this stage of data processing.

The auditor's understanding of internal controls provides the basis for designing appropriate audit tests to be used in the remaining phases of the audit.

The audit planning process is unlikely to vary if the company has adopted IFRS, or is in the process of convergence.

Auditors may send text messages through a company's system to find out whether encryption of private information is occurring properly.In addition, special software programs are available to help auditors identify weak points in a company's security measures.These are examples of:

During substantive testing, if material misstatements have been found to exist, which of the following actions should be taken next?

Risk assessment is a process designed to:

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

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