Question 1

Internal auditors assist external auditors with financial audits to

Accepted Answer

A)  reduce audit fees 
B)  ensure independence 
C)  represent the interests of management 
D)  the statement is not true; internal auditors are not permitted to assist external auditors with financial audits 
A)  reduce audit fees 
B)  ensure independence 
C)  represent the interests of management 
D)  the statement is not true; internal auditors are not permitted to assist external auditors with financial audits

Question 2

Which statement is not correct?

Accepted Answer

A)  Auditors gather evidence using tests of controls and substantive tests. 
B)  The most important element in determining the level of materiality is the mathematical formula. 
C)  Auditors express an opinion in their audit report. 
D)  Auditors compare evidence to established criteria. 
A)  Auditors gather evidence using tests of controls and substantive tests. 
B)  The most important element in determining the level of materiality is the mathematical formula. 
C)  Auditors express an opinion in their audit report. 
D)  Auditors compare evidence to established criteria.

Question 3

IT auditing is a small part of most external and internal audits.

Accepted Answer

A) True 
 B)False

Question 4

Define and contrast attestation services and assurance services.

Accepted Answer

Attest services are engagements in which

Question 5

What are commodity IT assets?

Accepted Answer

Commodity IT assets are not unique to a

Question 6

Systems development is separated from data processing activities because failure to do so

Accepted Answer

A)  weakens database access security 
B)  allows programmers access to make unauthorized changes to applications during execution 
C)  results in inadequate documentation 
D)  results in master files being inadvertently erased 
A)  weakens database access security 
B)  allows programmers access to make unauthorized changes to applications during execution 
C)  results in inadequate documentation 
D)  results in master files being inadvertently erased

Question 7

Which concept is not an integral part of an audit?

Accepted Answer

A)  evaluating internal controls 
B)  preparing financial statements 
C)  expressing an opinion 
D)  analyzing financial data 
A)  evaluating internal controls 
B)  preparing financial statements 
C)  expressing an opinion 
D)  analyzing financial data

Question 8

Internal control in a computerized environment can be divided into two broad categories.What are they?

Accepted Answer

Internal controls can be divided into tw

Question 9

Which is the most critical segregation of duties in the centralized computer services function?

Accepted Answer

A)  systems development from data processing 
B)  data operations from data librarian 
C)  data preparation from data control 
D)  data control from data librarian 
A)  systems development from data processing 
B)  data operations from data librarian 
C)  data preparation from data control 
D)  data control from data librarian

Question 10

The distributed data processing approach carries some control implications of which accountants should be aware.Discuss two.

Accepted Answer

Incompatibility of hardware and software

Question 11

Discuss the interrelationship of tests of controls,audit objectives,exposures,and existing controls.

Accepted Answer

During the risk analysis phase of the au

Question 12

Tests of controls determine whether the database contents fairly reflect the organization's transactions.

Accepted Answer

A) True 
 B)False

Question 13

Explain vendor exploitation.

Accepted Answer

Once the client firm has divested itself

Question 14

All of the following are components of audit risk except

Accepted Answer

A)  control risk 
B)  legal risk 
C)  detection risk 
D)  inherent risk 
A)  control risk 
B)  legal risk 
C)  detection risk 
D)  inherent risk

Question 15

Compare and contrast the following disaster recovery options: empty shell,recovery operations center,and internally provided backup.Rank them from most risky to least risky,as well as most costly to least costly.

Accepted Answer

The lowest cost method is internally pro

Question 16

The following are examples of specific assets except

Accepted Answer

A) application maintenance 
B) data warehousing 
C) highly skilled employees 
D) server maintenance 
A) application maintenance 
B) data warehousing 
C) highly skilled employees 
D) server maintenance

Question 17

Commodity IT assets easily acquired in the marketplace and should be outsourced under the core competency theory.

Accepted Answer

A) True 
 B)False

Question 18

What fraud detection responsibilities (if any)are imposed on auditors by the Sarbanes-Oxley Act?

Accepted Answer

Standard No.2 places new responsibility

Question 19

Explain the relationship between internal controls and substantive testing.

Accepted Answer

The stronger the int

Question 20

Name three types of program fraud.

Accepted Answer

Program fraud includes: (1)creating ille

Internal auditors assist external auditors with financial audits to

Which statement is not correct?

IT auditing is a small part of most external and internal audits.

Define and contrast attestation services and assurance services.

What are commodity IT assets?

Systems development is separated from data processing activities because failure to do so

Which concept is not an integral part of an audit?

Internal control in a computerized environment can be divided into two broad categories.What are they?

Which is the most critical segregation of duties in the centralized computer services function?

The distributed data processing approach carries some control implications of which accountants should be aware.Discuss two.

Discuss the interrelationship of tests of controls,audit objectives,exposures,and existing controls.

Tests of controls determine whether the database contents fairly reflect the organization's transactions.

Explain vendor exploitation.

All of the following are components of audit risk except

Compare and contrast the following disaster recovery options: empty shell,recovery operations center,and internally provided backup.Rank them from most risky to least risky,as well as most costly to least costly.

The following are examples of specific assets except

Commodity IT assets easily acquired in the marketplace and should be outsourced under the core competency theory.

What fraud detection responsibilities (if any)are imposed on auditors by the Sarbanes-Oxley Act?

Explain the relationship between internal controls and substantive testing.

Name three types of program fraud.

The Information System: an Accountants Perspective

Introduction to Transaction Processing

Ethics,fraud,and Internal Control

The Revenue Cycle

The Expenditure Cycle Part I: Purchases and Cash Disbursements Procedures

The Expenditure Cycle Part Ii: Payroll Processing and Fixed Asset Procedures

The Conversion Cycle

General Ledger,financial Reporting,and Management Reporting Systems

Database Management Systems

The Rea Approach to Business Process Modeling

Enterprise Resource Planning Systems

Electronic Commerce Systems

Managing the Systems Development Life Cycle

Construct,deliver,and Maintain Systems Projects

IT Controls Part II: Security and Access

IT Controls Part III: Systems Development, program Changes, and Application Controls

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Exam 15: IT Controls Part I: Sarbanes-Oxley and It Governance

Internal auditors assist external auditors with financial audits to

Which statement is not correct?

IT auditing is a small part of most external and internal audits.

Define and contrast attestation services and assurance services.

What are commodity IT assets?

Systems development is separated from data processing activities because failure to do so

Which concept is not an integral part of an audit?

Internal control in a computerized environment can be divided into two broad categories.What are they?

Which is the most critical segregation of duties in the centralized computer services function?

The distributed data processing approach carries some control implications of which accountants should be aware.Discuss two.

Discuss the interrelationship of tests of controls,audit objectives,exposures,and existing controls.

Tests of controls determine whether the database contents fairly reflect the organization's transactions.

Explain vendor exploitation.

All of the following are components of audit risk except

Compare and contrast the following disaster recovery options: empty shell,recovery operations center,and internally provided backup.Rank them from most risky to least risky,as well as most costly to least costly.

The following are examples of specific assets except

Commodity IT assets easily acquired in the marketplace and should be outsourced under the core competency theory.

What fraud detection responsibilities (if any)are imposed on auditors by the Sarbanes-Oxley Act?

Explain the relationship between internal controls and substantive testing.

Name three types of program fraud.

The Information System: an Accountants Perspective

Introduction to Transaction Processing

Ethics,fraud,and Internal Control

The Revenue Cycle

The Expenditure Cycle Part I: Purchases and Cash Disbursements Procedures

The Expenditure Cycle Part Ii: Payroll Processing and Fixed Asset Procedures

The Conversion Cycle

General Ledger,financial Reporting,and Management Reporting Systems

Database Management Systems

The Rea Approach to Business Process Modeling

Enterprise Resource Planning Systems

Electronic Commerce Systems

Managing the Systems Development Life Cycle

Construct,deliver,and Maintain Systems Projects

IT Controls Part II: Security and Access

IT Controls Part III: Systems Development, program Changes, and Application Controls

Filters