Exam 7: Auditing Information Technology Bases Processes

Decision makers are typically forced to rely on others for information.When the source of the information is removed from the decision maker, the information stands a greater chance of being misstated.A decision maker may become detached from the source of information due to geography, organizational layers, or other factors.This describes which cause of information risk?

Auditors do not need to concern themselves with risks unless there is an indication that there is an internal control weakness.

Which management assertion determines that transactions and related asset accounts balances are actually owned and that liability account balances represent actual obligations?

Accounting services that improve the quality of information provided to the decision maker, an audit being the most common type of this service, is called:

This type of audit is completed in order to determine whether a company has adhered to the regulations and policies established by contractual agreements, governmental agencies, or some other high authority.

This type of processing control test involves a comparison of different items that are expected to have the same values, such as comparing two batches or comparing actual data against a predetermined control total.

The automated controls that affect all computer applications are referred to as:

All types of auditors must follow guidelines promoting ethical conduct.For financial statement auditors, the PCAOB/AICPA has established a Code of Professional Conduct, commonly called the Code of Ethics, which consists of two sections.Which of the following correctly states the two sections?

Financial statement audits are required to be performed by:

The general guidelines, known as the generally accepted auditing standards, which include the concepts of adequate planning and supervision, internal control, and evidence relate to the:

The remoteness of information, one of the causes of information risk, can relate to geographic distance or organizational layers.

The general guidelines, known as the generally accepted auditing standards, which include the concepts of presentation in accordance with the established criteria, the consistent application of established principles, adequate disclosure, and the expression of an opinion, relate to the:

These tests of the security controls involve various methods of entering the company's system to determine whether controls are working as intended.

When a client changes the type of hardware or software used or in other ways modifies its IT environment, the auditors need to test only the new system in order to determine the effectiveness of the controls.

Which of the following is a general control to test for external access to a client's computerized systems?

The IT environment plays a key role in how auditors conduct their work in all but which of the following areas:

IT auditors may need to be called in to:

The most common method for decision makers to reduce information risk is to rely on information that has been audited by an independent party.

This organization issues guidelines for conducting the IT audit.The standards issued address practices related to control and security of the IT system.

Which of the following is not considered a cause for information risk?