Untitled Quiz

The primary responsibility for establishing and maintaining an internal control structure rests with;

• A. The external auditors

• A. The internal auditors

• A. Management

• A. The controller or the treasurer

Internal control structure cannot be designed to provide reasonable assurance that

• A. Transactions are executed in accordance with management’s authorization.

• Irregularities will be eliminated.

• Access to assets is permitted only in accordance with management’s authorization.

• The recorded accountability for assets is compared with the existing assets at reasonable intervals.

The auditor shall consider the entity’s CIS environment in designing audit procedures to reduce risk to an acceptably low level. Which of the following is incorrect

• The auditor’s specific audit objectives do not change whether financial information is processed manually or by computer

• The methods of applying audit procedures to gather audit evidence are not influenced by the methods of computer processing

• A. methods of computer processing.

  The auditor may use either manual audit procedures, computer - assisted audit techniques (CAATs) or a combination of both to obtain sufficient appropriate audit evidence

• In some CIS environments, it may be difficult or impossible for the auditor to obtain certain data for inspection, inquiry, or confirmation without the aid of a computer.

1. Regardless of the nature of an entity’s information systems,the auditor must consider internal control. In a CIS environment, the auditor must at a minimum, have

• A. A background in programming procedures

• A. An expertise in computer systems analysis

• A. A sufficient knowledge of the computer’s operating system.

• A. A sufficient knowledge of the computer information system.

1. A characteristics that distinguishes computer processing from manual processing is

• A. The potential for systematic error is ordinarily greater in manual processing than computerized processing.

• A. Errors or fraud in computer processing will be detected soon after their occurrences.

• A. Most computer systems are designed so that transaction trails useful for audit purposes do not exist.

• A. Computer processing virtually eliminates the occurrence of computational errors normally associated with manual processing.

The following are risks specific to IT environments, except

• A. Reduced segregation of duties.

• A. Loss of data due to insufficient back up

• A. Increased human development

• A. Reliance on the functioning capabilities of hardware and software.

Which of the following groups should have the operational responsibility for the accuracy and completeness of computer-based information

• A. External auditors

• Internal auditors

• A. Users

• A. Top management

Which of the following controls would most likely provide protection against unauthorized changes in production programs?

• A. Restricting programmer access to the computer room.

• A. Requiring two operators to be present during equipment operation.

• A. Limiting program access solely to operators

• A. Implementing management review of daily run logs.

The accountant who prepared a spreadsheet model for workload forecasting left the company, and his successor was unable to understand how to use the spreadsheet. The best control to permit new employees to understand internally developed programs is

• A. Adequate backups are made for spreadsheet models.

• A. Use of end-user computing resources is monitored.

• End-user computing efforts are consistent with strategic plans

• Document standards exist and are followed.

1. Which of the following best describes the process called authentication?

• A. The system verifies the identity of the user.

• A. The user identifies himself/herself to the system.

• A. The user indicates to the system that the transaction was processed correctly.

• A. The system verifies that the user is entitled to enter the transactions requested.