Question 1

When audit teams test a computerized processing system,which of the following is true of the test data approach?

Accepted Answer

A) Several transactions of each type must be tested. 
B) Test data are processed by the client's computer programs under the audit team's control. 
C) Test data must consist of all possible valid and invalid combinations. 
D) The computer program used to process test data is different from the program used throughout the year by the client. 
A) Several transactions of each type must be tested. 
B) Test data are processed by the client's computer programs under the audit team's control. 
C) Test data must consist of all possible valid and invalid combinations. 
D) The computer program used to process test data is different from the program used throughout the year by the client.

Question 2

Which of the following categories of general controls includes retention and recovery techniques for data and related programs?

Accepted Answer

A) Access to programs and data. 
B) Computer operations. 
C) Data file controls. 
D) Program change controls. 
A) Access to programs and data. 
B) Computer operations. 
C) Data file controls. 
D) Program change controls.

Question 3

Tests of controls in an advanced computerized processing system

Accepted Answer

A) Can be performed using only actual transactions because testing simulated transactions does not provide relevant evidence. 
B) Can be performed using actual transactions or simulated transactions. 
C) Is impractical because many procedures within the computerized processing system leave no visible evidence of having been performed. 
D) Is inadvisable because it may distort the evidence in real-time systems. 
A) Can be performed using only actual transactions because testing simulated transactions does not provide relevant evidence. 
B) Can be performed using actual transactions or simulated transactions. 
C) Is impractical because many procedures within the computerized processing system leave no visible evidence of having been performed. 
D) Is inadvisable because it may distort the evidence in real-time systems.

Question 4

To obtain evidence that controls over access to computer programs are properly functioning,audit teams most likely would

Accepted Answer

A) Create checkpoints at periodic intervals after data processing to test for unauthorized use of the system. 
B) Examine the transaction log to discover whether any transactions were lost or entered twice due to a system malfunction. 
C) Enter invalid identification numbers or passwords to ascertain whether the system rejects them. 
D) Vouch a random sample of processed transactions to assure proper authorization. 
A) Create checkpoints at periodic intervals after data processing to test for unauthorized use of the system. 
B) Examine the transaction log to discover whether any transactions were lost or entered twice due to a system malfunction. 
C) Enter invalid identification numbers or passwords to ascertain whether the system rejects them. 
D) Vouch a random sample of processed transactions to assure proper authorization.

Question 5

Computer controls that are pervasive and apply to all applications of a computerized processing system are referred to as

Accepted Answer

A) Computer controls. 
B) Environment controls. 
C) Automated application controls. 
D) General controls. 
A) Computer controls. 
B) Environment controls. 
C) Automated application controls. 
D) General controls.

Question 6

Which of the following is a category of general controls?

Accepted Answer

A) Detective controls. 
B) Input controls. 
C) Processing controls. 
D) Program change controls. 
A) Detective controls. 
B) Input controls. 
C) Processing controls. 
D) Program change controls.

Question 7

Audit teams would least likely use computer-assisted audit techniques to

Accepted Answer

A) Access client data files. 
B) Prepare spreadsheets. 
C) Assess control risk related to computerized processing systems. 
D) Construct and perform parallel simulations. 
A) Access client data files. 
B) Prepare spreadsheets. 
C) Assess control risk related to computerized processing systems. 
D) Construct and perform parallel simulations.

Question 8

Which of the following organizational positions would evaluate the existing system and design new computerized processing systems and documentation?

Accepted Answer

A) Programmer. 
B) Systems analyst. 
C) Computer operator. 
D) Data conversion operator. 
A) Programmer. 
B) Systems analyst. 
C) Computer operator. 
D) Data conversion operator.

Question 9

Which of the following computer controls would provide the best evidence that unauthorized users are not accessing specific computer programs and files?

Accepted Answer

A) Using passwords requiring access to those programs and files. 
B) Periodically reviewing and confirming access rights for the organization's users. 
C) Monitoring actual user activity through a program log and comparing that activity to authorized levels. 
D) Ensuring that access to programs and files is removed for recently-terminated employees. 
A) Using passwords requiring access to those programs and files. 
B) Periodically reviewing and confirming access rights for the organization's users. 
C) Monitoring actual user activity through a program log and comparing that activity to authorized levels. 
D) Ensuring that access to programs and files is removed for recently-terminated employees.

Question 10

In end-user computing environments,the processing control procedures would ordinarily not include

Accepted Answer

A) Transaction logs. 
B) Control totals. 
C) Comparing input to output. 
D) Online editing and sight verification. 
A) Transaction logs. 
B) Control totals. 
C) Comparing input to output. 
D) Online editing and sight verification.

Question 11

Which of the following is a general control that would most likely assist an organization whose systems analyst resigned during the development of a major project?

Accepted Answer

A) Grandfather-father-son file retention. 
B) Input and output validation routines. 
C) Systems documentation. 
D) Check digit verification. 
A) Grandfather-father-son file retention. 
B) Input and output validation routines. 
C) Systems documentation. 
D) Check digit verification.

Question 12

Which of the following input controls would not be effective in identifying the erroneous input of numeric fields in a transaction?

Accepted Answer

A) Batch totals. 
B) Hash totals. 
C) Check digits. 
D) Record counts. 
A) Batch totals. 
B) Hash totals. 
C) Check digits. 
D) Record counts.

When audit teams test a computerized processing system,which of the following is true of the test data approach?

Which of the following categories of general controls includes retention and recovery techniques for data and related programs?

Tests of controls in an advanced computerized processing system

To obtain evidence that controls over access to computer programs are properly functioning,audit teams most likely would

Computer controls that are pervasive and apply to all applications of a computerized processing system are referred to as

Which of the following is a category of general controls?

Audit teams would least likely use computer-assisted audit techniques to

Which of the following organizational positions would evaluate the existing system and design new computerized processing systems and documentation?

Which of the following computer controls would provide the best evidence that unauthorized users are not accessing specific computer programs and files?

In end-user computing environments,the processing control procedures would ordinarily not include

Which of the following is a general control that would most likely assist an organization whose systems analyst resigned during the development of a major project?

Which of the following input controls would not be effective in identifying the erroneous input of numeric fields in a transaction?

Auditing and Assurance Services

Professional Standards

Engagement Planning

Management Fraud and Audit Risk

Risk Assessment: Internal Control Evaluation

Employee Fraud and the Audit of Cash

Revenue and Collection Cycle

Acquisition and Expenditure Cycle

Production Cycle

Finance and Investment Cycle

Completing the Audit

Reports on Audited Financial Statements

Other Public Accounting Services

Professional Ethics

Legal Liability

Internal Audits, Governmental Audits, and Fraud Examinations

Overview of Sampling

Attributes Sampling

Variables Sampling

Filters

Exam 20: Auditing and Information Technology

When audit teams test a computerized processing system,which of the following is true of the test data approach?

Which of the following categories of general controls includes retention and recovery techniques for data and related programs?

Tests of controls in an advanced computerized processing system

To obtain evidence that controls over access to computer programs are properly functioning,audit teams most likely would

Computer controls that are pervasive and apply to all applications of a computerized processing system are referred to as

Which of the following is a category of general controls?

Audit teams would least likely use computer-assisted audit techniques to

Which of the following organizational positions would evaluate the existing system and design new computerized processing systems and documentation?

Which of the following computer controls would provide the best evidence that unauthorized users are not accessing specific computer programs and files?

In end-user computing environments,the processing control procedures would ordinarily not include

Which of the following is a general control that would most likely assist an organization whose systems analyst resigned during the development of a major project?

Which of the following input controls would not be effective in identifying the erroneous input of numeric fields in a transaction?

Auditing and Assurance Services

Professional Standards

Engagement Planning

Management Fraud and Audit Risk

Risk Assessment: Internal Control Evaluation

Employee Fraud and the Audit of Cash

Revenue and Collection Cycle

Acquisition and Expenditure Cycle

Production Cycle

Finance and Investment Cycle

Completing the Audit

Reports on Audited Financial Statements

Other Public Accounting Services

Professional Ethics

Legal Liability

Internal Audits, Governmental Audits, and Fraud Examinations

Overview of Sampling

Attributes Sampling

Variables Sampling

Filters