Question 1

A data warehouse is an example of:

Accepted Answer

A) On-line analytical processing. 
B) On-line transaction processing. 
C) Essential information batch processing. 
D) Decentralized processing. 
A) On-line analytical processing. 
B) On-line transaction processing. 
C) Essential information batch processing. 
D) Decentralized processing.

Question 2

Auditors are now faced with examining clients that have database systems.
a.Describe a database system,including its major advantage.
b.Identify policies and procedures that may be established to provide control over that aspect over a database system.

Accepted Answer

a.In a data-base system separate files a

Question 3

Which of the following procedures would an entity most likely include in its disaster recovery plan?

Accepted Answer

A) Convert all data from external formats to an internal company format. 
B) Maintain a program to prevent illegal activity. 
C) Develop an auxiliary power supply to provide uninterrupted electricity. 
D) Store duplicate copies of files in a location away from the computer center. 
A) Convert all data from external formats to an internal company format. 
B) Maintain a program to prevent illegal activity. 
C) Develop an auxiliary power supply to provide uninterrupted electricity. 
D) Store duplicate copies of files in a location away from the computer center.

Question 4

Which of the following is an example of general computer control?

Accepted Answer

A) Input validation checks. 
B) Control total. 
C) Operations manual. 
D) Generalized audit software. 
A) Input validation checks. 
B) Control total. 
C) Operations manual. 
D) Generalized audit software.

Question 5

State whether each of the following statements is correct or incorrect.
A.Specialists with specialized skills in IT processing are seldom used on audits since each audit team member is expected to have the necessary skills.
B.The nature of the IT-based system may affect the specific procedures employed by the auditors in testing the controls.
C.Computer assisted audit techniques,while helpful for tests of controls,are seldom helpful for substantive procedures.
D.Parallel simulation involves the use of audit software to process functions essentially equivalent to those of the client's program and to determine whether auditor and client results are equivalent

Accepted Answer

A.Correct.

Question 6

Which of the following would be least likely to be considered a desirable attribute of a database management system?

Accepted Answer

A) Data redundancy. 
B) Quick response to users' request for information. 
C) Control of users' identification numbers and passwords. 
D) Logging of terminal activity. 
A) Data redundancy. 
B) Quick response to users' request for information. 
C) Control of users' identification numbers and passwords. 
D) Logging of terminal activity.

Question 7

Consider the following computer applications:
At a catalog sales firm,as phone orders are entered into their computer,both inventory and credit are immediately checked.
(1)A manufacturer's computer sends the coming week's production schedule and parts orders to a supplier's computer.
Which statement below is true for these applications?

Accepted Answer

A) Both applications are examples of EDI. 
B) Both applications are examples of on-line real-time processing. 
C) The first application is an example of EDI and the second is an example of on-line real-time. 
D) The first application is an example of on-line real-time and the second is an example of EDI. 
A) Both applications are examples of EDI. 
B) Both applications are examples of on-line real-time processing. 
C) The first application is an example of EDI and the second is an example of on-line real-time. 
D) The first application is an example of on-line real-time and the second is an example of EDI.

Question 8

Which of the following is a software component of a computer system?

Accepted Answer

A) The operating system. 
B) The storage unit. 
C) The display monitor 
D) The optical scanner. 
A) The operating system. 
B) The storage unit. 
C) The display monitor 
D) The optical scanner.

Question 9

Smith Corporation has numerous customers.A customer file is kept on disk storage.Each account in the customer file contains name,address,credit limit,and account balance.The auditor wishes to test this file to determine whether credit limits are being exceeded.The best procedure for the auditor to follow would be to:

Accepted Answer

A) Develop test data that would cause some account balance to exceed the credit limit and determine if the system properly detects such situations. 
B) Develop a program to compare credit limits with account balances and print out the details of any account with a balance exceeding its credit limit. 
C) Require a printout of all account balances so they can be manually checked against the credit limits. 
D) Request a printout of a sample of account balances so they can be individually checked against the credit limits. 
A) Develop test data that would cause some account balance to exceed the credit limit and determine if the system properly detects such situations. 
B) Develop a program to compare credit limits with account balances and print out the details of any account with a balance exceeding its credit limit. 
C) Require a printout of all account balances so they can be manually checked against the credit limits. 
D) Request a printout of a sample of account balances so they can be individually checked against the credit limits.

Question 10

Which of the following computer system risks would be increased by the installation of a database system?

Accepted Answer

A) Programming errors. 
B) Data entry errors. 
C) Improper data access. 
D) Loss of power. 
A) Programming errors. 
B) Data entry errors. 
C) Improper data access. 
D) Loss of power.

Question 11

End-user computing is most likely to occur on which of the following types of computers?

Accepted Answer

A) Mainframe. 
B) Macrocomputers. 
C) Personal computers. 
D) Personal reference assistants. 
A) Mainframe. 
B) Macrocomputers. 
C) Personal computers. 
D) Personal reference assistants.

Question 12

Auditing through the computer is most likely to be used when:

Accepted Answer

A) Input transactions are batched and system logic is straightforward. 
B) Processing primarily consists of sorting the input data and updating the master file sequentially. 
C) Processing is primarily on line and updating is real-time. 
D) Outputs are in hard copy form. 
A) Input transactions are batched and system logic is straightforward. 
B) Processing primarily consists of sorting the input data and updating the master file sequentially. 
C) Processing is primarily on line and updating is real-time. 
D) Outputs are in hard copy form.

Question 13

Which of the following is not a programmed control?

Accepted Answer

A) Private lines. 
B) Validity tests. 
C) Self-checking numbers. 
D) Limit tests. 
A) Private lines. 
B) Validity tests. 
C) Self-checking numbers. 
D) Limit tests.

Question 14

When designing the physical layout of a data processing center,which of the following would be least likely to be a necessary control that is considered?

Accepted Answer

A) Design of controls to restrict access. 
B) Adequate physical layout space for the operating system. 
C) Inclusions of an adequate power supply system with surge protection. 
D) Consideration of risks related to other uses of electricity in the area. 
A) Design of controls to restrict access. 
B) Adequate physical layout space for the operating system. 
C) Inclusions of an adequate power supply system with surge protection. 
D) Consideration of risks related to other uses of electricity in the area.

Question 15

In their consideration of a client's IT controls,the auditors will encounter general controls and application controls.Which of the following is an application control?

Accepted Answer

A) The operations manual. 
B) Hash total. 
C) Systems documentation. 
D) Control over program changes. 
A) The operations manual. 
B) Hash total. 
C) Systems documentation. 
D) Control over program changes.

Question 16

Various characteristics of IT systems can present special audit risks.Explain each of the following characteristics of an IT system and the special audit risks that they present.
a.Data base system.
b.Distributive data processing.
c.End user computing.

Accepted Answer

a.A system that eliminates data redundan

Question 17

Which of the following is least likely to be tested with generalized audit software?

Accepted Answer

A) An aging of accounts receivable. 
B) A schedule of inventory. 
C) A depreciation schedule. 
D) A computer operations manual. 
A) An aging of accounts receivable. 
B) A schedule of inventory. 
C) A depreciation schedule. 
D) A computer operations manual.

Question 18

The completeness of computer-generated sales figures can be tested by comparing the number of items listed on the daily sales report with the number of items billed on the actual invoices.This process uses:

Accepted Answer

A) Self-checking numbers. 
B) Control totals. 
C) Validity tests. 
D) Process tracing data. 
A) Self-checking numbers. 
B) Control totals. 
C) Validity tests. 
D) Process tracing data.

Question 19

Which of the following testing techniques is more commonly used by internal auditors than by independent auditors?

Accepted Answer

A) Integrated test facilities. 
B) Test data. 
C) Controlled programs. 
D) Tagging and tracing transactions. 
A) Integrated test facilities. 
B) Test data. 
C) Controlled programs. 
D) Tagging and tracing transactions.

Question 20

Which of the following constitutes a weakness in the internal control of a computer system?

Accepted Answer

A) One generation of backup files is stored in an off-premises location. 
B) Machine operators distribute error messages to the control group. 
C) Machine operators do not have access to the complete systems manual. 
D) Machine operators are supervised by the programmer. 
A) One generation of backup files is stored in an off-premises location. 
B) Machine operators distribute error messages to the control group. 
C) Machine operators do not have access to the complete systems manual. 
D) Machine operators are supervised by the programmer.

A data warehouse is an example of:

Auditors are now faced with examining clients that have database systems. a.Describe a database system,including its major advantage. b.Identify policies and procedures that may be established to provide control over that aspect over a database system.

Which of the following procedures would an entity most likely include in its disaster recovery plan?

Which of the following is an example of general computer control?

Which of the following would be least likely to be considered a desirable attribute of a database management system?

Which of the following is a software component of a computer system?

Which of the following computer system risks would be increased by the installation of a database system?

End-user computing is most likely to occur on which of the following types of computers?

Auditing through the computer is most likely to be used when:

Which of the following is not a programmed control?

When designing the physical layout of a data processing center,which of the following would be least likely to be a necessary control that is considered?

In their consideration of a client's IT controls,the auditors will encounter general controls and application controls.Which of the following is an application control?

Various characteristics of IT systems can present special audit risks.Explain each of the following characteristics of an IT system and the special audit risks that they present. a.Data base system. b.Distributive data processing. c.End user computing.

Which of the following is least likely to be tested with generalized audit software?

The completeness of computer-generated sales figures can be tested by comparing the number of items listed on the daily sales report with the number of items billed on the actual invoices.This process uses:

Which of the following testing techniques is more commonly used by internal auditors than by independent auditors?

Which of the following constitutes a weakness in the internal control of a computer system?

The Role of the Public Accountant in the American Economy

Professional Standards

Professional Ethics

Legal Liability of CPAS

Audit Evidence and Documentation

Audit Planning, understanding the Client, assessing Risks, and Responding

Internal Control

Audit Sampling

Cash and Financial Investments

Accounts Receivable, Notes Receivable, and Revenue

Inventories and Cost of Goods Sold

Property Plant and Equipment: Depreciation and Depletion

Accounts Payable and Other Liabilities

Debt and Equity Capital

Auditing Operations and Completing the Audit

Auditors Report

Integrated Audits of Public Companies

Additional Assurance Services: Historical Financial Information

Additional Assurance Services: Other Information

Internal, Operational, and Compliance Auditing

Probability-Proportion-To-Size Sampling

Filters

Exam 8: Consideration of Internal Control in an Information Technology Environment

A data warehouse is an example of:

Auditors are now faced with examining clients that have database systems. a.Describe a database system,including its major advantage. b.Identify policies and procedures that may be established to provide control over that aspect over a database system.

Which of the following procedures would an entity most likely include in its disaster recovery plan?

Which of the following is an example of general computer control?

Which of the following would be least likely to be considered a desirable attribute of a database management system?

Which of the following is a software component of a computer system?

Which of the following computer system risks would be increased by the installation of a database system?

End-user computing is most likely to occur on which of the following types of computers?

Auditing through the computer is most likely to be used when:

Which of the following is not a programmed control?

When designing the physical layout of a data processing center,which of the following would be least likely to be a necessary control that is considered?

In their consideration of a client's IT controls,the auditors will encounter general controls and application controls.Which of the following is an application control?

Various characteristics of IT systems can present special audit risks.Explain each of the following characteristics of an IT system and the special audit risks that they present. a.Data base system. b.Distributive data processing. c.End user computing.

Which of the following is least likely to be tested with generalized audit software?

The completeness of computer-generated sales figures can be tested by comparing the number of items listed on the daily sales report with the number of items billed on the actual invoices.This process uses:

Which of the following testing techniques is more commonly used by internal auditors than by independent auditors?

Which of the following constitutes a weakness in the internal control of a computer system?

The Role of the Public Accountant in the American Economy

Professional Standards

Professional Ethics

Legal Liability of CPAS

Audit Evidence and Documentation

Audit Planning, understanding the Client, assessing Risks, and Responding

Internal Control

Audit Sampling

Cash and Financial Investments

Accounts Receivable, Notes Receivable, and Revenue

Inventories and Cost of Goods Sold

Property Plant and Equipment: Depreciation and Depletion

Accounts Payable and Other Liabilities

Debt and Equity Capital

Auditing Operations and Completing the Audit

Auditors Report

Integrated Audits of Public Companies

Additional Assurance Services: Historical Financial Information

Additional Assurance Services: Other Information

Internal, Operational, and Compliance Auditing

Probability-Proportion-To-Size Sampling

Filters