Exam 7: Auditing Information Technology Bases Processes

Which of the following is the most effective way of auditing the internal controls of an IT system?

The Sarbanes-Oxley Act has placed restrictions on auditors by prohibiting certain types of services historically performed by auditors for their clients.

Which of the following is not a part of general accepted auditing standards?

IFRS does not allow as much use of judgment as is allowed under GAAP.

The main purpose of an audit is to assure users of the financial information about the:

Management fraud is the intentional misstatement of financial information and may be difficult for auditors to find because the perpetrator will attempt to hide the fraud.

Auditing testing for any single general auditing objective would involve the same testing techniques even though there are different types of information collected to support different accounts and transactions.

The responsibility of the auditor to search for fraud is less than the responsibility to search for errors.

This is one of the computer-assisted audit techniques related to processing controls that involves processing company data through a controlled program designed to resemble the company's application.This test is run to find out whether the same results are achieved under different systems.

A process of constant evidence gathering and analysis to provide assurance on the information as soon as it occurs, or shortly thereafter, is referred to as:

This type of audit is completed to determine whether or not the client has prepared and presented its financial statements fairly, in accordance with established financial accounting criteria.

Regardless of whether the results are printed or retained electronically, auditors may perform all of the following procedures to test application outputs, except:

The rule in the PCAOB/AICPA Code of Professional Conduct that is referred to as Responsibilities, can be stated as:

This law, also known as the first-digit law, was named after a physicist who discovered a specific, but non-uniform pattern in the frequency of digits occurring as the first number in a list of numbers:

An internal auditor is not allowed to assist in the performance of a financial statement audit.

Network operations typically involve a large number of computers, many users, and a high volume of data transfers, so any lack of network controls could cause widespread damage.Because of this, it is necessary for auditors to apply strict tests to a representative sample of the network.

Which of the following audit objectives relates to the management assertion of existence?

Systems operators and users should not have access to the IT documentation containing details about the internal logic of computer systems.

Although there are a number of organizations that provide detailed guidance, it is still necessary for auditors to rely on other direction regarding the types of audit tests to use and the manner in which the conclusions are drawn.These sources of information include:

When a client plans to implement new computerized systems, auditors will find it advantageous to review the new system before it is placed in use.