1. The major purpose of the auditor's study and evaluation of the company's computer processing operations is to a. Evaluate the competence of computer processing operating personnel b. Ensure the exercise of due professional care c. Evaluate the reliability and integrity of financial information d. Become familiar with the company's means of identifying, measuring, classifying and reporting information
2. The auditor's primary concern with an auditee programmer's writing a program to age inventory is a. The auditor's programming experience b. Loss of independence c. Saving valuable audit time d. The programmer's access to confidential information
3. When evaluating computerized operating reports, the internal auditor should consider the computer processing department entirely responsible for data a. Completeness b. Accuracy c. Timeliness d. None of the above
4. Which of the following could the internal auditor examine only in online sytems? a. Results of test decks b. Resolution of errors c. Levels of terminal access d. Tests of transactions
5. In a distributed database environment, which of the following is a test of control for access control administration? a. Reconciliation of batch control totals b. Examination of logged activity c. Prohibition of random access d. Analysis of system-generated core dumps
6. Auditing through the computer must be used when a. Input transactions are batched and system logic is straightforward b. Processing primarily consists of sorting the input data and updating the master file sequentially c. Processing is primarily online and updating is real-time d. Generalized audit software is not available
7. Parallel audit simulation (the audit model technique) is an appropriate audit approach for a. Testing for the presence of authorized signatures on documents b. Summarizing the results of accounts receivable confirmation work c. Calculating amounts for declining-balance depreciation charges d. Scanning the general ledger file for unusual transactions
8. When auditing computer security, the internal auditor usually does not a. Perform tests of the effectiveness of controls b. Review contingency procedures and documentation standards c. Perform substantive test d. Review personnel practices and policies
9. To determine whether any unauthorized program changes have been made since the last authorized program update, the best computer audit technique is for the auditor to conduct a(n) a. Code comparison b. Code review c. Test data run d. Analytical review
10. A primary reason auditors are reluctant to use an ITF (minicompany technique) is that it requires them to a. Reserve specific master file records and process them at regular intervals b. Collect transaction and master file records in a separate file c. Notify user personnel so they can make manual adjustments to output d. Identify and reverse the fictitious entries to avoid contamination of control totals
11. In auditing an online perpetual inventory system, an auditor selected certain file-updating transactions for detailed testing. The audit technique that will provide a computer trail of all relevant processing steps applied to a specific transaction is described as a. Simulation b. Snapshot c. Code comparison d. Tagging and tracing
12. Different audit procedures may be required because a microcomputer may not be subject to the same degree of controls as larger computers. The best audit approach in a microcomputer environment is to increase a. Tests of controls b. Substantive testing c. Attribute sampling d. Documentation review
13. The audit effort most likely to yield relvant evidence in determining the adequacy of an organization's disaster recovery plan should focus on a. The completeness of the plan as to facilities, operations, communications, security and data processing b. The sufficiency of the list of replacement equipment needed in event of a disaster c. The question of whether the plan is in the planning or developmental stage d. The role of the internal auditing department in developing and testing the plan
14. What information would the auditor expect to find in the data dictionary that would assist in a payroll application audit? a. Programs that access the data b. Type of operating system c. Online user identification d. System network architecture and flowcharts
15. An audit of the electronic data interchange area of a banking group revealed the facts listed below. Which one indicates the need for improved internal control? a. Employees may only access the computer system via an ID and an encrypted password b. The system employs message sequencing as a way to monitor data transmissions c. Certain types of transactions may only be made at specific terminals d. Branch office employees may access the mainframe with a single call via modem
