Exam 7: Auditing Information Technology Bases Processes

An important requirement of CPA firms is that they must be ________ with regard to the company being audited.The requirement allows CPA firms to provide a completely unbiased opinion on the information it audits.

As a business grows, the volume and complexity of its transactions increase.At the same timed, there is a decrease in the chance that misstated information may exist undetected.

Information risk is the chance that information used by decision makers may be inaccurate.

The auditor's test of the accuracy of monetary amounts of transactions and account balances is known as:

When audit clients use a database system, the relating data is organized in a consistent manner which tends to make it easier for auditors to select items for testing.

Which of the following is not one of the three primary types of audits?

In order to enhance controls, reconciliations should be performed by company personnel who are independent from the tasks of initiating or recording the transactions with the accounts being reconciled.

Related audit tests to review the existence and communication of company policies regarding important aspects of IT administrative control include all of the following, except:

Which of the following computer assisted auditing techniques allows fictitious and real transactions to be processed together without client personnel being aware of the testing process?

When companies rely on external, independent computer service centers to handle all or part of their IT needs it is referred to as:

Controls meant to prevent the destruction of information as the result of unauthorized access to the IT system are referred to as:

The audit practice of "auditing around the computer" is also referred to as:

Suppose that during the planning phase of an audit, the auditor determines that weaknesses exist in the client's computerized systems.These weaknesses make the client company susceptible to the risk of an unauthorized break-in.Which type of audit procedures should be emphasized in the remaining phases of this audit?

The audit is to be performed by a person or persons having adequate technical training and proficiency as an auditor.This is one of the generally accepted auditing standards that is part of the:

IT audit procedures typically include a combination of data accuracy tests where the data processed by computer applications are reviewed for correct dollar amounts or other numerical values.These procedures are referred to as:

Financial statement audits are performed by _________ who have extensive knowledge of generally accepted accounting principles GAAP) in the US and/or International Financial Reporting Standards IFRS).

Because it is not possible to test all transactions and balances, auditors rely on this to choose and test a limited number of items and transactions and then make conclusions about the balance as a whole.

Management assertions relate to the actual existence and proper valuation of transactions and account balances.

The generally accepted auditing standards are divided into three groups.Which of the following is not one of those groups?

General controls relate to specific software and application controls relate to all aspects of the IT environment.