1. Modern computer technology makes it possible to perform paperless audits. For example, in an audit of computer-processed customer accounts receivable balances, an auditor might use a microcomputer to access the accounts receivable files directly and copy selected customer records into the microcomputer for audit analysis. Which of the following is an advantage of this type of paperless audit of accounts receivable balances? a. It reduces the amount of substantive testing required b. It allows immediate processing of audit data on a spreadsheet working paper c. It increases the amount of technical skill required of the auditor d. It allows direct confirmation of customer account balances
2. Which of the following statements is not true concerning the tasks that generalized audit software is able to perform? a. Provide totals of unusual items b. Check for duplications, missing information or ranges of values c. Specify which data elements will be tested and the criteria to be used d. Verify calculation totals and analyses produced
3. Which of the following represents a limitation on the uae of generalized audit software? a. It requires lengthy detailed instructions in order to accomplish specific tasks b. It has limited application without significant modification c. It requires significant programming knowledge to be used effectively d. It can only be used on hardware with compatible operating systems
4. When an auditor performs test on a computerized inventory file containing over 2o,000 line items, that auditor can maintain independence and perform most efficiently by a. Asking the console operator to print every item that cost more than $100 b. Using a generalized audit software package c. Obtaining a printout of the entire file and then selecting each nth item d. Using the systems department's programmer to write an extraction program
5. Which of the following is not an advantage of using a generalized computer audit program? Such use a. Requires the auditor to have only a minimal knowledge of computer technology while providing the auditor with a high level of programming independence b. Assures compatibility with database management systems c. Eliminates the requirement to develop custom audit software for each type of audit d. Permits greater reliance to be placed on the audit results than could be obtained from manual techniques
6. Which of the following concepts distinguishes the retention of computerized audit working papers from the traditional hard copy form? a. Analyses, conclusions and recommendations are file on electronic media and are therefore subject to computer system controls and security procedures b. Evidential support for all findings is copied and provided to local management during the closing conference and to each person receiving the final report c. Computerized data files can be used in computer audit procedures d. Audit programs can be standardized to eliminate the need for a preliminary survey at each location
7. An internal auditor can use a checkpoint in a computer audit program to avoid complete restarts with a. Random access and sequential files b. Disk operating systems c. Tape operating systems d. All of the above
