Exam 7: Auditing Information Technology Bases Processes

GAAS, generally accepted auditing standards, provide a general framework for conducting quality audits, but the specific standards - or detailed guidance - are provided by all of the following groups, except:

Risk can be inherent in the company's business, due to things such as the nature of operations, or may be caused by weak internal controls.

One of the most effective ways a client can protect its computer system is to place environmental controls in the computer center.Environmental controls include:

These tests of security controls analyze a company's control environment for possible weaknesses.Special software programs are available to help auditors identify weak points in their company's security measures.

Auditors should perform this type of test to determine the valid use of the company's computer system, according to the authority tables.

This approach, referred to as the whitebox approach, requires auditors to evaluate IT controls and processing so that they can determine whether the information generated from the system is reliable.

This type of auditor conducts audits of government agencies or income tax returns.

This concept means that the auditors should not automatically assume that their clients are honest, but that they the auditors) must have a questioning mind and a persistent approach to evaluating evidence for possible misstatements.

This organization is part of the AICPA and was the group responsible for issuing Statements on Auditing Standards which were historically widely used in practice.

In an audit of financial statement in accordance with generally accepted auditing standards, an auditor is required to:

The advantages of using IT-based accounting systems, where the details of transactions are entered directly into the computer include:

In addition to testing system documentation, auditors should test the three main functions of computer applications.Which of the following is not one of these functions?

The same audit tests would test for completeness of a liability or an asset.

Of all the principles applicable to auditors, the one that generally receives the most attention is the requirement that financial statement auditors maintain integrity.

Any professionally trained accountant is able to perform an operational audit.

The process of evaluating internal controls and designing meaningful audit tests is more complex for manual systems than for automated systems.

This type of audit is completed to assess the operating policies and procedures of a client for efficiency and effectiveness.

Which of the following is a proper description of an auditor report?

Which of the following best describes what is meant by the term "generally accepted auditing standards"?

Substantive tests are also referred to as compliance tests.