Question 1

Which of the following would most likely be a weakness in the internal control of a client that utilizes portable computing devices rather than a large computer system?

Accepted Answer

A)   Employee collusion possibilities are increased because portable computing devices from one vendor can process the programs of a system from different vendors.
B)   Computer operators may be able to remove hardware and software components and modify them at an off-site location.
C)   Programming errors result in all similar transactions being processed incorrectly because those transactions are processed under the same conditions.
D)   Certain transactions may be automatically initiated by the computerized processing system and management's authorization of these transactions may be implicit in its acceptance of the system design.

Question 2

Match each of the automated application controls with the error condition(s)they are designed to prevent or detect (each control may be designed to prevent or detect more than one error condition).

Accepted Answer

1.A; 2.B,C,D; 3.A,B,...

Question 3

Which of the following methods allow fictitious and actual transactions to be processed together without client operating personnel being aware of the testing process?

Accepted Answer

A)   Integrated test facility.
B)   Input controls matrix.
C)   Parallel simulation.
D)   Data entry monitor.

Question 4

Controls that involve all applications of computerized processing (such as hardware controls)are referred to as ______________________________________.

Accepted Answer

The answer of Controls that involve all applications of computerized...

Question 5

______________________________ compare the client's processing of simulated transactions to the audit team's manual processing of those transactions.

Accepted Answer

The answer of ______________________________ compare the client's processing of simulated...

Question 6

The basic concept of test data is that once a computer is programmed to handle transactions in a certain way,every transaction will be handled in the same way.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is an example of a computer operations control?

Accepted Answer

A)   Control totals.
B)   Balance of input to output.
C)   File backup and retention.
D)   Transaction logs.

Question 8

In a computerized processing system,hardware controls are designed to

Accepted Answer

A)   Arrange data in a logical sequential manner for processing purposes.
B)   Correct errors in the computer programs.
C)   Monitor and detect errors in source documents.
D)   Detect and control errors arising from use of equipment.

Question 9

When weaknesses exist that could lead to computer fraud,the best strategy is to have the client help audit teams plan and execute technical procedures to study and evaluate the system.

Accepted Answer

A) True 
 B)False

Question 10

Computerized processing performed concurrently with a particular activity so that results are available to influence a decision being made is referred to as

Accepted Answer

A)   Batch processing.
B)   Real-time processing.
C)   Integrated data processing.
D)   Random access processing.

Question 11

What is the difference between the use of test data and parallel simulation?

Accepted Answer

The primary differences between the use ...

Question 12

_____________________________ describes the system and its controls and is the means of communicating the essential elements of the computerized processing system to current and potential users.

Accepted Answer

The answer of _____________________________ describes the system and its controls...

Question 13

Which of the following is likely to be of least importance to audit teams when obtaining an understanding of the computer controls in an organization with a computerized processing system?

Accepted Answer

A)   Separation of duties within the computer function.
B)   Controls over source documents.
C)   Documentation maintained for accounting applications.
D)   Relationship between costs and benefits of computer operations.

Question 14

Which of the following categories of general controls includes retention and recovery techniques for data and related programs?

Accepted Answer

A)   Access to programs and data.
B)   Computer operations.
C)   Data file controls.
D)   Hardware controls.

Question 15

_____________________________ computing environments are often characterized by inadequate separation of duties and lack of physical computer security.

Accepted Answer

The answer of _____________________________ computing environments are often characterized by...

Question 16

Which of the following persons is responsible for controlling access to systems documentation and access to program and data files?

Accepted Answer

A)   Programmers.
B)   Data conversion operators.
C)   Librarians.
D)   Computer operators.

Question 17

__________________________________ controls are "built in" to the computer equipment and provide reasonable assurance that data are not altered or modified as they are transmitted within the system.

Accepted Answer

The answer of __________________________________ controls are "built in" to the...

Question 18

Which of the following would reduce the effectiveness of internal control in a computerized processing system?

Accepted Answer

A)   The computer librarian maintains custody of computer program instructions and detailed lists.
B)   Computer operators have access to operator instructions and detailed program lists.
C)   The control group is solely responsible for the distribution of all computer output.
D)   Computer programmers write and debug programs that perform routines designed by the systems analyst.

Question 19

The client's computerized exception reporting system helps audit teams conduct a more efficient audit because it

Accepted Answer

A)   Condenses data significantly.
B)   Highlights abnormal conditions.
C)   Decreases the necessary level of tests of computer controls.
D)   Is an efficient computer input control.

Question 20

Which of the following is not a control included as part of the systems development life cycle?

Accepted Answer

A)   Ensuring that all software acquisition and program development efforts are consistent with the organization's needs and objectives.
B)   Testing and validating new programs and developing proper implementation plans.
C)   Requiring that all programming efforts take place under the control of the requesting user department.
D)   Ensuring that data are converted completely and accurately for use in the new systems.

Exam 20: Auditing in a Computerized Environment

Which of the following persons is responsible for controlling access to systems documentation and access to program and data files?

Correct AnswerverifiedShow Answer

Which of the following is an example of a computer operations control?

Correct AnswerverifiedShow Answer

When weaknesses exist that could lead to computer fraud,the best strategy is to have the client help audit teams plan and execute technical procedures to study and evaluate the system.

Correct AnswerverifiedShow Answer

Which of the following is not a control included as part of the systems development life cycle?

Correct AnswerverifiedShow Answer

Which of the following is likely to be of least importance to audit teams when obtaining an understanding of the computer controls in an organization with a computerized processing system?

Correct AnswerverifiedShow Answer

The client's computerized exception reporting system helps audit teams conduct a more efficient audit because it

Correct AnswerverifiedShow Answer

Which of the following would reduce the effectiveness of internal control in a computerized processing system?

Correct AnswerverifiedShow Answer

What is the difference between the use of test data and parallel simulation?

Correct AnswerverifiedThe primary differences between the use ...View AnswerShow Answer

Controls that involve all applications of computerized processing (such as hardware controls)are referred to as ______________________________________.

Correct AnswerverifiedShow Answer

Which of the following methods allow fictitious and actual transactions to be processed together without client operating personnel being aware of the testing process?

Correct AnswerverifiedShow Answer

Match each of the automated application controls with the error condition(s)they are designed to prevent or detect (each control may be designed to prevent or detect more than one error condition).

Correct Answerverified1.A; 2.B,C,D; 3.A,B,...View AnswerShow Answer

_____________________________ computing environments are often characterized by inadequate separation of duties and lack of physical computer security.

Correct AnswerverifiedShow Answer

Computerized processing performed concurrently with a particular activity so that results are available to influence a decision being made is referred to as

Correct AnswerverifiedShow Answer

Which of the following categories of general controls includes retention and recovery techniques for data and related programs?

Correct AnswerverifiedShow Answer

The basic concept of test data is that once a computer is programmed to handle transactions in a certain way,every transaction will be handled in the same way.

Correct AnswerverifiedShow Answer

In a computerized processing system,hardware controls are designed to

Correct AnswerverifiedShow Answer

__________________________________ controls are "built in" to the computer equipment and provide reasonable assurance that data are not altered or modified as they are transmitted within the system.

Correct AnswerverifiedShow Answer

______________________________ compare the client's processing of simulated transactions to the audit team's manual processing of those transactions.

Correct AnswerverifiedShow Answer

Which of the following would most likely be a weakness in the internal control of a client that utilizes portable computing devices rather than a large computer system?

Correct AnswerverifiedShow Answer

_____________________________ describes the system and its controls and is the means of communicating the essential elements of the computerized processing system to current and potential users.

Correct AnswerverifiedShow Answer

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The primary differences between the use ...
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1.A; 2.B,C,D; 3.A,B,...
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