Question 1

Increasing the effectiveness of internal controls would have the greatest effect on

Accepted Answer

A) reducing inherent risk. 
B) reducing control risk. 
C) reducing detection risk. 
D) reducing audit risk. 
A) reducing inherent risk. 
B) reducing control risk. 
C) reducing detection risk. 
D) reducing audit risk.

Question 2

Increasing the effectiveness of auditing software will

Accepted Answer

A) reduce detection risk. 
B) reduce control risk. 
C) increase detection risk. 
D) increase control risk. 
A) reduce detection risk. 
B) reduce control risk. 
C) increase detection risk. 
D) increase control risk.

Question 3

As the head of the internal audit department for Orange Computing,you want to hire a person to serve as one of Orange's operational auditors.Identify the candidate below that is likely to be the most qualified person for the job.

Accepted Answer

A) Jane, a CPA who has 10 years of audit experience 
B) Kasheena, an MBA who has 10 years of management experience 
C) Joe, a CISA who has 10 years of IT audit experience 
D) Vahlia, a CPA who has 7 years of audit experience and 3 years of management experience 
A) Jane, a CPA who has 10 years of audit experience 
B) Kasheena, an MBA who has 10 years of management experience 
C) Joe, a CISA who has 10 years of IT audit experience 
D) Vahlia, a CPA who has 7 years of audit experience and 3 years of management experience

Question 4

Assessing the quality of internal controls,the reliability of information,and operating performance are all part of

Accepted Answer

A) audit planning. 
B) collection of audit evidence. 
C) communication of audit results. 
D) evaluation of audit evidence. 
A) audit planning. 
B) collection of audit evidence. 
C) communication of audit results. 
D) evaluation of audit evidence.

Question 5

Which of the following is not a control procedure for preventing inadvertent programming errors?

Accepted Answer

A) Review software license agreements. 
B) Test new programs, including user acceptance testing. 
C) Purchase hardware only from management approved vendors. 
D) Require management approval of programming specifications. 
A) Review software license agreements. 
B) Test new programs, including user acceptance testing. 
C) Purchase hardware only from management approved vendors. 
D) Require management approval of programming specifications.

Question 6

The auditor's objective is to seek ________ that no material error exists in the information audited.

Accepted Answer

A) absolute reliability 
B) reasonable objectivity 
C) reasonable evidence 
D) reasonable assurance 
A) absolute reliability 
B) reasonable objectivity 
C) reasonable evidence 
D) reasonable assurance

Question 7

Evaluating effectiveness,efficiency,and goal achievement are objectives of ________ audits.

Accepted Answer

A) financial 
B) operational 
C) information systems 
D) all of the above 
A) financial 
B) operational 
C) information systems 
D) all of the above

Question 8

Describe the five commonly used concurrent audit techniques.

Accepted Answer

(1)Integrated test facility - Inserting

Question 9

What is the primary purpose of computer audit software?

Accepted Answer

A) To eliminate auditor judgment errors. 
B) To assist the auditor in retrieving and reviewing information. 
C) To help auditors detect unauthorized modifications to system program code. 
D) To help auditors recheck all mathematical calculations, cross-foot, reprocess financial statements and compare to originals. 
A) To eliminate auditor judgment errors. 
B) To assist the auditor in retrieving and reviewing information. 
C) To help auditors detect unauthorized modifications to system program code. 
D) To help auditors recheck all mathematical calculations, cross-foot, reprocess financial statements and compare to originals.

Question 10

Describe the risk-based audit approach.

Accepted Answer

The risk-based audit approach has four s

Question 11

________ is one tool used to document source data controls.

Accepted Answer

A) An input control matrix 
B) A flowchart generator program 
C) A program algorithm matrix 
D) A mapping program 
A) An input control matrix 
B) A flowchart generator program 
C) A program algorithm matrix 
D) A mapping program

Question 12

Strong ________ controls can partially compensate for inadequate ________ controls.

Accepted Answer

A) development; processing 
B) processing; development 
C) operational; internal 
D) internal; operational 
A) development; processing 
B) processing; development 
C) operational; internal 
D) internal; operational

Question 13

The ________ audit reviews the general and application controls of an AIS to assess its compliance with internal control policies and procedures and its effectiveness in safeguarding assets.

Accepted Answer

A) financial 
B) information systems 
C) management 
D) internal control 
A) financial 
B) information systems 
C) management 
D) internal control

Question 14

Expanding a firm's operations to include a manufacturing facility overseas will

Accepted Answer

A) reduce inherent risk. 
B) reduce control risk. 
C) increase inherent risk. 
D) increase control risk. 
A) reduce inherent risk. 
B) reduce control risk. 
C) increase inherent risk. 
D) increase control risk.

Question 15

An audit software program that generates programs that perform certain audit functions,based on auditor specifications,is referred to as a(n)

Accepted Answer

A) input controls matrix. 
B) CAATS. 
C) embedded audit module. 
D) mapping program. 
A) input controls matrix. 
B) CAATS. 
C) embedded audit module. 
D) mapping program.

Question 16

Verifying the accuracy of certain information,often through communication with third parties,is known as

Accepted Answer

A) reperformance. 
B) confirmation. 
C) substantiation. 
D) documentation. 
A) reperformance. 
B) confirmation. 
C) substantiation. 
D) documentation.

Question 17

An auditor calculates the current ratio of the company to determine its ability to pay off its current financial obligation.This is an example of

Accepted Answer

A) review of the documentation. 
B) vouching. 
C) confirmation. 
D) analytical review. 
A) review of the documentation. 
B) vouching. 
C) confirmation. 
D) analytical review.

Question 18

What is not a typical responsibility of an external auditor?

Accepted Answer

A) Helping management to improve organizational effectiveness. 
B) Assisting in the design and implementation of an AIS. 
C) Preparation of the company's financial statements. 
D) All of the above. 
A) Helping management to improve organizational effectiveness. 
B) Assisting in the design and implementation of an AIS. 
C) Preparation of the company's financial statements. 
D) All of the above.

Question 19

The ________ audit examines the reliability and integrity of accounting records.

Accepted Answer

A) financial 
B) informational 
C) information systems 
D) operational 
A) financial 
B) informational 
C) information systems 
D) operational

Question 20

There is an inverse relationship between control risk and detection risk.

Accepted Answer

A) True 
 B)False

Exam 11: Auditing Computer-Based Information Systems

Increasing the effectiveness of internal controls would have the greatest effect on

Increasing the effectiveness of auditing software will

As the head of the internal audit department for Orange Computing,you want to hire a person to serve as one of Orange's operational auditors.Identify the candidate below that is likely to be the most qualified person for the job.

Assessing the quality of internal controls,the reliability of information,and operating performance are all part of

Which of the following is not a control procedure for preventing inadvertent programming errors?

The auditor's objective is to seek ________ that no material error exists in the information audited.

Evaluating effectiveness,efficiency,and goal achievement are objectives of ________ audits.

Describe the five commonly used concurrent audit techniques.

What is the primary purpose of computer audit software?

Describe the risk-based audit approach.

________ is one tool used to document source data controls.

Strong ________ controls can partially compensate for inadequate ________ controls.

The ________ audit reviews the general and application controls of an AIS to assess its compliance with internal control policies and procedures and its effectiveness in safeguarding assets.

Expanding a firm's operations to include a manufacturing facility overseas will

An audit software program that generates programs that perform certain audit functions,based on auditor specifications,is referred to as a(n)

Verifying the accuracy of certain information,often through communication with third parties,is known as

An auditor calculates the current ratio of the company to determine its ability to pay off its current financial obligation.This is an example of

What is not a typical responsibility of an external auditor?

The ________ audit examines the reliability and integrity of accounting records.

There is an inverse relationship between control risk and detection risk.

Conceptual Foundations of Accounting Information Systems

Overview of Transaction Processing and Enterprise Resource Planning Systems

Systems Documentation Techniques

Relational Databases

Computer Fraud

Computer Fraud and Abuse Techniques

Control and Accounting Information Systems

Controls for Information Security

Confidentiality and Privacy Controls

Processing Integrity and Availability Controls

The Revenue Cycle: Sales to Cash Collections

The Expenditure Cycle: Purchasing to Cash Disbursements

The Production Cycle

The Human Resources Management and Payroll Cycle

General Ledger and Reporting System

Database Design Using the Rea Data Model

Implementing an Rea Model in a Relational Database

Special Topics in Rea Modeling

Introduction to Systems Development and Systems Analysis

Ais Development Strategies

Systems Design, implementation, and Operation

Filters

Strong controls can partially compensate for inadequate controls.