1. The significance of hardware controls to auditors is that they a. Ensure correct programming of operating system functions b. Assure the correct execution of machine instructions c. Reduce the incidence of user input errors in online systems d. Ensure that run-to-run totals in application systems are consistent
2. Hardware controls usually are those built into the equipment by the manufacturer. One such control, an echo check, is best described as a. A component that signals the control unit that an operation has been performed b. Two units that provide read-after-write and dual-read capabilities c. Double writing of the CPU and peripheral equipment to prevent malfunctioning d. A device that prevents more than one peripheral unit from communicating with the CPU at the same time
3. You wish to evaluate editing controls in your audit of the computer systems department. Which of the following is not an edit test? a. Batch controls b. Parity check c. Self-checking numbers d. Limit check
4. In a data center, many hardware controls assure the accuracy of data processed. One hardware control used to evaluate stored data by counting the number of on bits in each character and then determining whether the total obtained is odd or even is a a. Programmed check b. Header label check c. Check digit routine d. Parity check
5. Adequate control over access to data processing is required to a. Deter improper use or manipulation of data files and programs b. Ensure that only console operators have access to program documentation c. Minimize the need for backup data files d. Ensure that hardware controls are operating effectively and as designed by the computer manufacturer
6. Which new issues, associated with rapidly advancing computer technology, create new risk exposures for organizations? a. Changes in organizational reporting requirements and controls over computer abuse b. Controls over library tape procedures c. Complexity of operating systems and controls over privacy of data d. Changes in organizational behavior
7. Data access security related to applications may be enforced through all the following except a. User identification and authentication functions incorporated in the application b. Utility software functions c. User identification and authentication functions in access control software d. Security functions provided by a database management system
8. All administrative and professional staff in a corporate legal department prepare documents on terminals connected to a host LAN file server. The best control over unauthorized access to sensitive documents in the system is a. Required entry of passwords for access to the system b. Physical security for all disks containing document files c. Periodic server backup and storage in a secure area d. Required entry of passwords for access to individual documents
9. Which of the following controls is least effective in preventing unauthorized access to a computer file from a remote, unauthorized terminal or personal computer? a. Call back procedures b. Frequently changed passwords c. Echo checks d. Frequently changed access codes
10. An organization could incur material losses if a competitor gains access to sensitive operating information contained in computer files. The controls most likely to prevent such losses are a. Controlled disposal of documents and encryption of data files b. Encryption of data files and frequent changes of passwords c. Primary and secondary key integrity checks and encryption of data files d. Primary and secondary key integrity checks and frequent changing of passwords
11. The purpose of input controls is to ensure the a. Authorization of access to data files b. Authorization of access to program files c. Completeness, accuracy and validity of updating d. Completeness, accuracy and vality of input
12. Data conversion is the translation of data into a form the computer can accept. What method of data conversion is most difficult to audit? a. Keying data to disk for online processing b. Keying data to disk for batch processing c. Keying data to source documents for magnetic-ink character recognition d. Reading source data using optical-character recognition
13. Check digits, entry verification and batch totals are examples of controls designed to provide reasonable assurance that a. Data processing has been performed as intended without omission or double counting of transactions b. Only authorized persons have access to files c. Data received for processing have been properly converted d. Coding of data internal to the computer did not change when the data were moved from one internal storage location to another
14. An internal auditor downloads the invoices, payments and payables for goods received for the prior month to an audit workstation. The best approach for verifying the completeness of the data is for the auditor to use audit software on the workstation to a. Match invoices with payments; match payments with invoices b. Match invoices with payables; match payables with invoices c. Match invoices with payments and payables; match payments and payables with invoices d. Match invoices with payments; match payments and payables with invoices
15. A company's labor distribution report requires extensive corrections each month because of labor hours charged to inactive jobs. Which of the following data processing input controls appears to be missing? a. Completeness test b. Validity test c. Limit test d. Control total
16. An online bank teller system permitted withdrawals from inactive accounts. The best control for denying such withdrawals is a a. Proof calculation b. Check-digit verification c. Master file lookup d. Duplicate record check
17. A computer program for processing the weekly payroll contains an instruction that the gross pay field shall not exceed $1,000 for any employee. This instruction constitues a control known as a a. Limit check b. Valid code check c. Parity check d. Record check
18. The last record in an inventory file contains totals of items in the file. Each time the file is updated, the totals are also updated. Periodically, the relevant data fields are summed and compared with the totals. Unbalanced conditions are reported and corrected. This practice is a(n) a. Input control b. Transmission control c. File management control d. Output distribution control
19. The key verification process associated with keying computer records for input to a computer system is a. Effectively used to detect the erroneous recording of data on source documents b. Inexpensive and therefore widely used c. Used to detect errors introduced by the keying process d. Ordinarily used with a computer program written to check the data
20. The best approach for ensuring that only authorized emplyees receive computer output is a. Place the output in bins early in the day rather than late in the day b. Load the output in a file to print at local workstations c. Hold the output in a secure area until it is picked up by authorized employees d. Make printouts available only at specified times
