Question 1

Identify the six categories of general controls and give one example of each.

Accepted Answer

General controls fall into the following...

Question 2

A control that relates to all parts of the IT system is called a(n) :

Accepted Answer

A)  general control.
B)  systems control.
C)  universal control.
D)  applications control.E) A) and D)
F) All of the above

Question 3

Which of the following is not an example of an applications control?

Accepted Answer

A)  Back-up of data is made to a remote site for data security.
B)  There is a preprocessing authorization of the sales transactions.
C)  There are reasonableness tests for the unit selling price of a sale.
D)  After processing, all sales transactions are reviewed by the sales department.E) A) and C)
F) A) and D)

Question 4

Old and new systems operating simultaneously in all locations is a test approach known as:

Accepted Answer

A)  pilot testing.
B)  horizontal testing.
C)  integrative testing.
D)  parallel testing.E) A) and B)
F) B) and D)

Question 5

Which of the following describes the process of implementing a new system in one part of the organization, while other locations continue to use the current system?

Accepted Answer

A)  Parallel testing
B)  Online testing
C)  Pilot testing
D)  Control testingE) A) and C)
F) A) and D)

Question 6

Auditors usually obtain information about general and application controls through:

Accepted Answer

A)  interviews with IT personnel.
B)  examination of systems documentation.
C)  reading program change requests.
D)  all of the above methods.E) A) and B)
F) None of the above

Question 7

General controls in smaller companies are usually less effective than in more complex IT environments.

Accepted Answer

A) True 
 B)False

Question 8

A ________ is responsible for controlling the use of computer programs, transaction files and other computer records and documentation and releases them to the operators only when authorized.

Accepted Answer

A)  software engineer
B)  chief computer operator
C)  librarian
D)  data control operatorE) All of the above
F) None of the above

Question 9

When the client changes the computer software:

Accepted Answer

A)  no additional testing is needed by the auditor.
B)  and application controls are effective, the auditor can easily identify when software changes are made.
C)  and general controls are effective, the auditor can easily identify when software changes are made.
D)  application and general controls can no longer by relied upon by the auditor.E) C) and D)
F) A) and B)

Question 10

General controls may include firewalls which are used to protect from:

Accepted Answer

A)  erroneous internal handling of data.
B)  insufficient documentation of transactions.
C)  illogical programming commands.
D)  unauthorized external users.E) A) and D)
F) All of the above

Question 11

Controls which are built in by the manufacturer to detect equipment failure are called:

Accepted Answer

A)  input controls.
B)  data integrity controls.
C)  hardware controls.
D)  manufacturer's controls.E) B) and C)
F) A) and D)

Question 12

When the client uses a computer but the auditor chooses to use only the non-IT segment of internal control to assess control risk, it is referred to as auditing around the computer.Which one of the following conditions need not be present to audit around the computer?

Accepted Answer

A)  Application controls need to be integrated with general controls.
B)  The source documents must be available in a non-machine language.
C)  The documents must be filed in a manner that makes it possible to locate them.
D)  The output must be listed in sufficient detail to enable the auditor to trace individual transactions.E) A) and B)
F) A) and C)

Question 13

The most important output control is:

Accepted Answer

A)  distribution control, which assures that only authorized personnel receive the reports generated by the system.
B)  review of data for reasonableness by someone who knows what the output should look like.
C)  control totals, which are used to verify that the computer's results are correct.
D)  logic tests, which verify that no mistakes were made in processing.E) A) and B)
F) B) and C)

Question 14

Which of the following is not an application control?

Accepted Answer

A)  Preprocessing authorization of sales transactions
B)  Reasonableness test for unit selling price of sale
C)  Post-processing review of sales transactions by the sales department
D)  Logging in to the company's information systems via a passwordE) All of the above
F) A) and C)

Question 15

Typical controls developed for manual systems which are still important in IT systems include:

Accepted Answer

A)  management's authorization of transactions.
B)  competent personnel.
C)  adequate preparation of input source documents.
D)  all of the above.E) A) and B)
F) A) and C)

Question 16

Parallel testing is used when old and new systems are operated simultaneously in all locations.

Accepted Answer

A) True 
 B)False

Question 17

Controls specific to IT include all of the following except for:

Accepted Answer

A)  adequately designed input screens.
B)  pull-down menu lists.
C)  validation tests of input accuracy.
D)  separation of duties.E) All of the above
F) None of the above

Question 18

Firewalls can protect company data and software programs.

Accepted Answer

A) True 
 B)False

Question 19

What are the two software testing strategies that companies typically use?
 Which strategy is more expensive?

Accepted Answer

Companies may use pilot testing and para...

Question 20

Output controls focus on preventing errors during processing.

Accepted Answer

A) True 
 B)False

Exam 12: The Impact of Information Technology on the Audit Process

Which of the following describes the process of implementing a new system in one part of the organization, while other locations continue to use the current system?

Correct AnswerverifiedShow Answer

The most important output control is:

Correct AnswerverifiedShow Answer

Typical controls developed for manual systems which are still important in IT systems include:

Correct AnswerverifiedShow Answer

Output controls focus on preventing errors during processing.

Correct AnswerverifiedShow Answer

A ________ is responsible for controlling the use of computer programs, transaction files and other computer records and documentation and releases them to the operators only when authorized.

Correct AnswerverifiedShow Answer

A control that relates to all parts of the IT system is called a(n) :

Correct AnswerverifiedShow Answer

Auditors usually obtain information about general and application controls through:

Correct AnswerverifiedShow Answer

What are the two software testing strategies that companies typically use? Which strategy is more expensive?

Correct AnswerverifiedCompanies may use pilot testing and para...View AnswerShow Answer

General controls in smaller companies are usually less effective than in more complex IT environments.

Correct AnswerverifiedShow Answer

Controls which are built in by the manufacturer to detect equipment failure are called:

Correct AnswerverifiedShow Answer

Which of the following is not an application control?

Correct AnswerverifiedShow Answer

Old and new systems operating simultaneously in all locations is a test approach known as:

Correct AnswerverifiedShow Answer

When the client changes the computer software:

Correct AnswerverifiedShow Answer

General controls may include firewalls which are used to protect from:

Correct AnswerverifiedShow Answer

Controls specific to IT include all of the following except for:

Correct AnswerverifiedShow Answer

When the client uses a computer but the auditor chooses to use only the non-IT segment of internal control to assess control risk, it is referred to as auditing around the computer.Which one of the following conditions need not be present to audit around the computer?

Correct AnswerverifiedShow Answer

Identify the six categories of general controls and give one example of each.

Correct AnswerverifiedGeneral controls fall into the following...View AnswerShow Answer

Which of the following is not an example of an applications control?

Correct AnswerverifiedShow Answer

Parallel testing is used when old and new systems are operated simultaneously in all locations.

Correct AnswerverifiedShow Answer

Firewalls can protect company data and software programs.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Companies may use pilot testing and para...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
General controls fall into the following...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified