Question 1

General controls must be tested before application controls.

Accepted Answer

A) True 
 B)False

Question 2

Independent auditors are generally actively involved in each of the following tasks except:

Accepted Answer

A) Preparation of a client's financial statements and accompanying notes. 
B) Advising client management as to the applicability of a new accounting standard. 
C) Proposing adjustments to a client's financial statements. 
D) Advising client management about the presentation of the financial statements. 
A) Preparation of a client's financial statements and accompanying notes. 
B) Advising client management as to the applicability of a new accounting standard. 
C) Proposing adjustments to a client's financial statements. 
D) Advising client management about the presentation of the financial statements.

Question 3

A financial statement audit is part of the IT audit.

Accepted Answer

A) True 
 B)False

Question 4

The Sarbanes-Oxley Act decreased management's responsibilities regarding the fair presentation of the financial statements.

Accepted Answer

A) True 
 B)False

Question 5

The most common type of audit service is the operating audit performed by internal auditors.

Accepted Answer

A) True 
 B)False

Question 6

This organization was established by the IFAC to set International Standards on Auditing ISAs) that contribute to the uniform application of auditing practices on a worldwide basis.

Accepted Answer

A) International Systems Audit and Control Association 
B) Auditing Standards Board 
C) Public Company Accounting Oversight Board 
D) International Auditing and Assurance Standards Board IAAS
B)  
A) International Systems Audit and Control Association 
B) Auditing Standards Board 
C) Public Company Accounting Oversight Board 
D) International Auditing and Assurance Standards Board IAAS
B)

Question 7

Risk assessment in cloud computing is particularly challenging because the threats to a company's data are uncontrolled, and often unforeseen, by the company.

Accepted Answer

A) True 
 B)False

Question 8

This piece of audit evidence is often considered to be the most important because it is a signed acknowledgment of management's responsibility for the fair presentation of the financial statements and a declaration that they have provided complete and accurate information to the auditors during all phases of the audit.

Accepted Answer

A) Letter of Representation 
B) Audit Report 
C) Encounter Statement 
D) Auditors Contract 
A) Letter of Representation 
B) Audit Report 
C) Encounter Statement 
D) Auditors Contract

Question 9

The ten standards that provide broad guidelines for an auditor's professional responsibilities are referred to as:

Accepted Answer

A) Generally accepted accounting standards 
B) General accounting and auditing practices 
C) Generally accepted auditing practices 
D) Generally accepted auditing standards 
A) Generally accepted accounting standards 
B) General accounting and auditing practices 
C) Generally accepted auditing practices 
D) Generally accepted auditing standards

Question 10

The independence of a CPA could be impaired by:

Accepted Answer

A) Having no knowledge of the company or the company management 
B) By owning stock of a similar company 
C) Having the ability to influence the client's decisions 
D) Being married to a stockbroker 
A) Having no knowledge of the company or the company management 
B) By owning stock of a similar company 
C) Having the ability to influence the client's decisions 
D) Being married to a stockbroker

Question 11

Claims regarding the condition of the business organization and in terms of its operations, financial results, and compliance with laws and regulations, are referred to as:

Accepted Answer

A) Financial Statements 
B) Management Assertions 
C) External Audit 
D) Presentation and Disclosure 
A) Financial Statements 
B) Management Assertions 
C) External Audit 
D) Presentation and Disclosure

Question 12

The two broad categories of general controls that relate to IT systems include which of the following:

Accepted Answer

A) IT systems documentation 
B) IT administration and the related operating systems development and maintenance processes 
C) Authenticity table 
D) Computer security and virus protection 
A) IT systems documentation 
B) IT administration and the related operating systems development and maintenance processes 
C) Authenticity table 
D) Computer security and virus protection

Question 13

This type of auditor is an employee of the company he / she audits.

Accepted Answer

A) IT Auditor 
B) Government Auditor 
C) Certified Public Accountant 
D) Internal Auditor 
A) IT Auditor 
B) Government Auditor 
C) Certified Public Accountant 
D) Internal Auditor

Question 14

Control tests verify whether financial information is accurate, where substantive tests determine whether the financial information is managed under a system that promotes accuracy.

Accepted Answer

A) True 
 B)False

Question 15

The main reasons that it is necessary to study information-based processing and the related audit function include:

Accepted Answer

A) Information users often do not have the time or ability to verify information themselves. 
B) It may be difficult for decision makers to verify information contained in a computerized accounting system. 
C) Both of the above. 
D) Neither of the above. 
A) Information users often do not have the time or ability to verify information themselves. 
B) It may be difficult for decision makers to verify information contained in a computerized accounting system. 
C) Both of the above. 
D) Neither of the above.

Question 16

Which of the following statements regarding an audit program is true?

Accepted Answer

A) An audit program should be standardized so that it may be used on any client engagement. 
B) The audit program should be completed by the client company before the audit planning stage begins. 
C) An audit program should be developed by the internal auditor during the audit's completion/reporting phase. 
D) An audit program establishes responsibility for each audit test by requiring the signature or initials of the auditor who performed the test. 
A) An audit program should be standardized so that it may be used on any client engagement. 
B) The audit program should be completed by the client company before the audit planning stage begins. 
C) An audit program should be developed by the internal auditor during the audit's completion/reporting phase. 
D) An audit program establishes responsibility for each audit test by requiring the signature or initials of the auditor who performed the test.

Question 17

Because there is no such thing as a standard cloud, it is not possible to standardize a risk assessment process and audit procedures for a cloud computing environment.

Accepted Answer

A) True 
 B)False

Question 18

The proof of the fairness of the financial information is:

Accepted Answer

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

Question 19

All of the risks and audit procedures that apply to a PC environment may also exist in networks, but the risk of loss of much lower.

Accepted Answer

A) True 
 B)False

Question 20

A financial statement audit is conducted in order for an opinion to be expressed on the fair presentation of financial statements.This goal is affected by the presence or absence of IT accounting systems.

Accepted Answer

A) True 
 B)False

General controls must be tested before application controls.

Independent auditors are generally actively involved in each of the following tasks except:

A financial statement audit is part of the IT audit.

The Sarbanes-Oxley Act decreased management's responsibilities regarding the fair presentation of the financial statements.

The most common type of audit service is the operating audit performed by internal auditors.

This organization was established by the IFAC to set International Standards on Auditing ISAs) that contribute to the uniform application of auditing practices on a worldwide basis.

Risk assessment in cloud computing is particularly challenging because the threats to a company's data are uncontrolled, and often unforeseen, by the company.

The ten standards that provide broad guidelines for an auditor's professional responsibilities are referred to as:

The independence of a CPA could be impaired by:

Claims regarding the condition of the business organization and in terms of its operations, financial results, and compliance with laws and regulations, are referred to as:

The two broad categories of general controls that relate to IT systems include which of the following:

This type of auditor is an employee of the company he / she audits.

Control tests verify whether financial information is accurate, where substantive tests determine whether the financial information is managed under a system that promotes accuracy.

The main reasons that it is necessary to study information-based processing and the related audit function include:

Which of the following statements regarding an audit program is true?

Because there is no such thing as a standard cloud, it is not possible to standardize a risk assessment process and audit procedures for a cloud computing environment.

The proof of the fairness of the financial information is:

All of the risks and audit procedures that apply to a PC environment may also exist in networks, but the risk of loss of much lower.

A financial statement audit is conducted in order for an opinion to be expressed on the fair presentation of financial statements.This goal is affected by the presence or absence of IT accounting systems.

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

General controls must be tested before application controls.

Independent auditors are generally actively involved in each of the following tasks except:

A financial statement audit is part of the IT audit.

The Sarbanes-Oxley Act decreased management's responsibilities regarding the fair presentation of the financial statements.

The most common type of audit service is the operating audit performed by internal auditors.

This organization was established by the IFAC to set International Standards on Auditing ISAs) that contribute to the uniform application of auditing practices on a worldwide basis.

Risk assessment in cloud computing is particularly challenging because the threats to a company's data are uncontrolled, and often unforeseen, by the company.

The ten standards that provide broad guidelines for an auditor's professional responsibilities are referred to as:

The independence of a CPA could be impaired by:

Claims regarding the condition of the business organization and in terms of its operations, financial results, and compliance with laws and regulations, are referred to as:

The two broad categories of general controls that relate to IT systems include which of the following:

This type of auditor is an employee of the company he / she audits.

Control tests verify whether financial information is accurate, where substantive tests determine whether the financial information is managed under a system that promotes accuracy.

The main reasons that it is necessary to study information-based processing and the related audit function include:

Which of the following statements regarding an audit program is true?

Because there is no such thing as a standard cloud, it is not possible to standardize a risk assessment process and audit procedures for a cloud computing environment.

The proof of the fairness of the financial information is:

All of the risks and audit procedures that apply to a PC environment may also exist in networks, but the risk of loss of much lower.

A financial statement audit is conducted in order for an opinion to be expressed on the fair presentation of financial statements.This goal is affected by the presence or absence of IT accounting systems.

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