Exam 12: Implications of Information Technology for the Audit Process

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Controls which are designed to assure that the information processed by the computer is authorized,complete,and accurate are called:

(Multiple Choice)

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Question 21

When purchasing software or developing in-house software:

(Multiple Choice)

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Question 22

Which of the following is a correct statement regarding general controls?

(Multiple Choice)

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Question 23

Discuss the advantages and benefits of using generalized audit software.

(Essay)

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Question 24

An example of a physical control is:

(Multiple Choice)

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Question 25

Auditors usually obtain information about general and application controls through:

(Multiple Choice)

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Question 26

Auditors typically obtain information about general and application controls through all of the following ways except for:

(Multiple Choice)

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Question 27

Processing controls include the following tests: Validation Sequence Data Reasonableness Completeness Describe what each control is designed to do:

(Essay)

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Question 28

Computers process information consistently for all transactions.This creates a risk that:

(Multiple Choice)

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Question 29

Controls that are designed for each software application and are intended to help a company satisfy the transaction-related audit objectives are:

(Multiple Choice)

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Question 30

In comparing (1)the adequacy of the hardware controls in the system with (2)the organization's methods of handling the errors that the computer identifies,the independent auditor is:

(Multiple Choice)

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Question 31

Misstatements in the financial statement may not be detected with the increased use of IT due to: I.the loss of a visible audit trail. II.reduced human involvement.

(Multiple Choice)

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Question 32

General controls may include firewalls which are used to protect from:

(Multiple Choice)

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Question 33

The most important output control is:

(Multiple Choice)

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Question 34

Which of the following describes the process of implementing a new system in one part of the organization,while other locations continue to use the current system?

(Multiple Choice)

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Question 35

The auditor's objective in determining whether the client's automated controls can correctly handle valid and invalid transactions as they arise is accomplished through the:

(Multiple Choice)

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Question 36

Parallel testing is more expensive than pilot testing.

(True/False)

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Question 37

When a client uses desktops and networked servers for the accounting functions,there is a risk of computer viruses.

(True/False)

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Question 38

One category of general controls is physical and online access controls.Describe the control and give at two examples of implementation of the control.

(Essay)

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Question 39

A large portion of errors in IT systems result from data entry errors.

(True/False)

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Question 40

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Exam 12: Implications of Information Technology for the Audit Process

Controls which are designed to assure that the information processed by the computer is authorized,complete,and accurate are called:

When purchasing software or developing in-house software:

Which of the following is a correct statement regarding general controls?

Discuss the advantages and benefits of using generalized audit software.

An example of a physical control is:

Auditors usually obtain information about general and application controls through:

Auditors typically obtain information about general and application controls through all of the following ways except for:

Processing controls include the following tests: Validation Sequence Data Reasonableness Completeness Describe what each control is designed to do:

Computers process information consistently for all transactions.This creates a risk that:

Controls that are designed for each software application and are intended to help a company satisfy the transaction-related audit objectives are:

In comparing (1)the adequacy of the hardware controls in the system with (2)the organization's methods of handling the errors that the computer identifies,the independent auditor is:

Misstatements in the financial statement may not be detected with the increased use of IT due to: I.the loss of a visible audit trail. II.reduced human involvement.

General controls may include firewalls which are used to protect from:

The most important output control is:

Which of the following describes the process of implementing a new system in one part of the organization,while other locations continue to use the current system?

The auditor's objective in determining whether the client's automated controls can correctly handle valid and invalid transactions as they arise is accomplished through the:

Parallel testing is more expensive than pilot testing.

When a client uses desktops and networked servers for the accounting functions,there is a risk of computer viruses.

One category of general controls is physical and online access controls.Describe the control and give at two examples of implementation of the control.

A large portion of errors in IT systems result from data entry errors.

The Assurance Services Market

The Audit Standards Setting Process

Audit Reports

Legal Liability Considerations for Auditors

Ethics and the Audit Profession

Audit Responsibilities and Objectives

Nature and Type of Audit Evidence

Audit Planning

Considering Materiality and Audit Risk

Considering Internal Control

Considering the Risk of Fraud

Developing the Overall Audit Plan and Audit Program

Audit of the Sales and Collection Cycle: Tests of Controls and Substantive Tests of Transactions

Audit Sampling for Tests of Controls and Substantive Tests of Transactions

Completing the Tests in the Sales and Collection Cycle: Accounts Receivable

Audit Sampling for Tests of Details of Balances

Audit of the Acquisition and Payment Cycle: Tests of Controls, Substantive Tests of Transactions, and Accounts Payable

Completing the Tests in the Acquisition and Payment Cycle: Verification of Selected Accounts

Audit of the Inventory and Warehousing Cycle

Audit of the Payroll and Personnel Cycle

Audit of the Capital Acquisition and Repayment Cycle

Audit of Cash and Financial Instruments

Audit Completion

Other Assurance Services

Internal and Governmental Financial Auditing and Operational Auditing

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