Exam 14: Auditing Information Technology

"Auditing through the computer" refers to

An audit that examines the controls governing the systems process and which directly affect the reliability of the application programs created is called a(n)

Presented below is a list of terms relating to accounting information systems,followed by definitions of those terms. Required: Match the letter next to each definition with the appropriate term.Each answer will be used only once. ________ 1.Audit program ________ 2.System control audit review file ________ 3.Auditing around-the-computer ________ 4.In-line code ________ 5.Financial statement audit ________ 6.Control flowcharting ________ 7.Test data ________ 8.Embedded audit routines ________ 9.Sample audit review file ________10.PC software A.The second stage of a financial statement audit which uses substantive testing for direct verification of financial statement figures B.Software that allows the auditor to use PCs to perform audit tasks C.Information systems auditing approach in which the processing portion of a computer system is ignored D.A detailed list of the procedures to be applied on a particular audit E.Analytic documentation or other graphic techniques used to describe the controls in a system F.The use of in-line code to randomly select transactions for audit analysis G.Auditor-prepared input containing both valid and invalid data H.Special auditing routines included in regular computer programs so that transaction data can be subjected to audit analysis I.An application program performs an embedded audit routine such as data collection at the same time as it processes data for normal use J.Auditor-determined programmed edit tests for audit transaction analysis are included in a program as it is initially developed

An organization's current status compared to benchmarks and international standards,as well as an organization's strategy for improvement,is called a(n)________ model.

Confirming the existence,assessing the effectiveness,and checking the continuity of the operation of the internal controls upon which reliance is placed is called

External auditors typically conduct compliance testing because

Embedded audit routines are more easily added to a program as a modification rather than being added as a program is developed.

Specific documentation showing the nature of application controls in a system is known as control flowcharting.

The snapshot technique involves capturing and dumping

Which of the following information system auditing technologies would be the best to monitor the execution of a computer program?

The information systems auditing technique that uses software that has been specifically designed to allow auditors to perform audit-related data processing functions is called

The first (and oldest)technique used to audit through the computer is

Auditing activities undertaken during substantive testing of account balances can be described as "auditing through the computer."

Which of the following controls would not be examined in the audit of a computer service center?

COBIT is an IT governance framework that is critical in ensuring proper control and governance over information and the system that creates,stores,manipulates,and retrieves that information.

Explain why external auditors perform compliance testing when a main objective of a financial statement audit is to express an opinion regarding the fairness of the monetary balances in a company's financial statements.

Application controls are related to specific computer application systems.

Which of the following is correct regarding the ACL audit software package?

In RBA,the subject of the audit is how well the management prevents fraud.

Risk-based auditing provides assurances relating to the effectiveness of an organization's enterprise risk management process.