Audit-IT(reviewer) Flashcards by Rosemarie Gapasin

What type of computer is used for extremely high-volume and complex processing?

A) Mainframe Computers
B) Minicomputers
C) Supercomputers
D) Microcomputers

C) Supercomputers

How well did you know this?

Not at all

Perfectly

Which of the following is an example of an input device?

A) Magnetic Ink Character Reader (MICR)
B) Monitor
C) Printer
D) Plotter

A) Magnetic Ink Character Reader (MICR)

How well did you know this?

Not at all

Perfectly

What is the main function of the Central Processing Unit (CPU)?

A) Store and retrieve data
B) Process instructions and manipulate data
C) Control input and output devices
D) Print and display output

B) Process instructions and manipulate data

How well did you know this?

Not at all

Perfectly

Which storage device provides direct access to data?

A) Magnetic disks
B) Magnetic tapes
C) Cartridges
D) Optical disks

A) Magnetic disks

How well did you know this?

Not at all

Perfectly

What is the main function of an operating system?

A) Monitor and control computer hardware and software operations
B) Perform specific tasks like payroll processing
C) Store data permanently
D) Manage a company’s database

A) Monitor and control computer hardware and software operations

How well did you know this?

Not at all

Perfectly

What type of processing allows transactions to be processed as they occur?

A) Batch Processing
B) Database Processing
C) Real-Time Processing (OLRT)
D) Sequential Processing

C) Real-Time Processing (OLRT)

How well did you know this?

Not at all

Perfectly

Which of the following is NOT an internal control in an IT environment?

A) Organizational controls
B) Profit Maximization Control
C) Access controls
D) Monitoring controls

B) Profit Maximization Control

How well did you know this?

Not at all

Perfectly

What type of network spans a large geographical area?

A) Local Area Network (LAN)
B) Wide Area Network (WAN)
C) Personal Area Network (PAN)
D) Data Processing Network

B) Wide Area Network (WAN)

How well did you know this?

Not at all

Perfectly

What role does a Chief Information Officer (CIO) play in an organization?

A) Develops programming languages
B) Supervises and manages IT operations
C) Manages employee benefits
D) Conducts external audits

B) Supervises and manages IT operations

How well did you know this?

Not at all

Perfectly

What is an example of a general IT control?

A) Segregation of IT duties
B) Transaction validation
C) Data encryption
D) Data entry verification

A) Segregation of IT duties

How well did you know this?

Not at all

Perfectly

What is the purpose of a database management system (DBMS)?

A) Store, access, and manage a database
B) Convert machine code into human language
C) Secure an organization’s IT infrastructure
D) Print and display processed data

A) Store, access, and manage a database

How well did you know this?

Not at all

Perfectly

What is a white box approach in IT auditing?

A) Auditing with or through the computer
B) Auditing only around the computer
C) Ignoring data processing procedures
D) Conducting interviews with IT staff

A) Auditing with or through the computer

How well did you know this?

Not at all

Perfectly

What is a common risk in an IT environment?

A) Increase in paper-based transactions
B) Unauthorized access to data
C) More reliance on manual calculations
D) Increased hardware storage capacity

B) Unauthorized access to data

How well did you know this?

Not at all

Perfectly

What is the main objective of a test of controls in an IT audit?

A) Evaluate the effectiveness of controls
B) Review management policies
C) Identify key business competitors
D) Determine company profitability

A) Evaluate the effectiveness of controls

How well did you know this?

Not at all

Perfectly

What is the primary purpose of a hash total in IT controls?

A) Store critical data
B) Ensure accuracy by checking the sum of non-financial data fields
C) Protect software against viruses
D) Track employee login times

B) Ensure accuracy by checking the sum of non-financial data fields

How well did you know this?

Not at all

Perfectly

Which technique involves running an auditor’s test data through a company’s system to check for control failures?

A) Test Data Approach
B) Program Mapping
C) Flowcharting Software
D) Audit Trail Analysis

A) Test Data Approach

How well did you know this?

Not at all

Perfectly

What is the purpose of transaction tagging in IT auditing?

A) Track a transaction through different processing stages
B) Replace manual transactions
C) Store encrypted financial information
D) Generate customer receipts

A) Track a transaction through different processing stages

How well did you know this?

Not at all

Perfectly

Which IT audit method involves using a duplicate system to compare processing results?

A) Black Box Approach
B) Parallel Simulation
C) Code Review
D) Integrated Test Facility

B) Parallel Simulation

How well did you know this?

Not at all

Perfectly

What is the main function of a firewall in an IT system?

A) Store confidential data
B) Prevent unauthorized access to a network
C) Increase processing speed
D) Manage employee payroll

B) Prevent unauthorized access to a network

How well did you know this?

Not at all

Perfectly

What is a key characteristic of a Cold Site in IT disaster recovery?

A) Requires hardware installation before operation
B) Fully equipped with pre-installed hardware and software
C) Used for daily backup and storage
D) Provides cloud computing services

A) Requires hardware installation before operation

How well did you know this?

Not at all

Perfectly

What is an example of a secondary storage device that provides sequential access to data?

A) Magnetic tape
B) Hard disk
C) Solid-state drive
D) Optical disk

A) Magnetic tape

How well did you know this?

Not at all

Perfectly

What is the primary function of the Arithmetic and Logic Unit (ALU) in the CPU?

A) Store program instructions
B) Control input and output devices
C) Perform mathematical and logical operations
D) Manage file storage

C) Perform mathematical and logical operations

How well did you know this?

Not at all

Perfectly

Which of the following is an example of an output device?

A) Plotter
B) Keyboard
C) Optical scanner
D) Magnetic tape reader

A) Plotter

How well did you know this?

Not at all

Perfectly

What is the main advantage of a RAID (Redundant Array of Independent Disks) system?

A) Minimizes data loss by storing redundant copies of data
B) Speeds up data input
C) Reduces power consumption
D) Eliminates the need for external backups

A) Minimizes data loss by storing redundant copies of data

How well did you know this?

Not at all

Perfectly

Which of the following is NOT a type of computer network? A) Local Area Network (LAN) B) Computer Processing Network (CPN) C) Wide Area Network (WAN) D) National Area Network (NAN)

B) Computer Processing Network (CPN)

What is the main function of an IT General Control? A) Ensure the reliability and security of IT systems B) Approve financial statements C) Process payroll transactions D) Manage customer relationships

A) Ensure the reliability and security of IT systems

What type of software manages hardware resources and provides a platform for application software? A) Operating system B) Database management system C) Utility program D) Communication software

A) Operating system

Which of the following is an example of an electronic commerce input method? A) Optical scanner B) Keyboard entry C) Joystick D) Electronic Data Interchange (EDI)

D) Electronic Data Interchange (EDI)

What type of processing is best for large batch jobs that do not require immediate results? A) Real-time processing B) Distributed processing C) Batch processing D) Online transaction processing

C) Batch processing

What is a key advantage of database systems? A) Requires no security measures B) Eliminates the need for user access controls C) Slows down data retrieval D) Prevents data redundancy

D) Prevents data redundancy

What is the primary security risk in distributed data processing? A) Slower transaction processing B) Increased hardware costs C) Limited data storage capacity D) Unauthorized access to information

D) Unauthorized access to information

What is the function of a source program? A) Stores company financial records B) Contains human-readable programming code before compilation C) Manages operating system functions D) Controls hardware components

B) Contains human-readable programming code before compilation

Which technique in IT auditing focuses only on inputs and outputs without examining internal processing? A) White box approach B) Flowcharting C) Code review D) Black box approach

D) Black box approach

What is the purpose of a virtual memory system? A) Store program source codes B) Extend primary memory using secondary storage C) Secure IT infrastructure D) Replace physical hard drives

B) Extend primary memory using secondary storage

Which control ensures that only authorized transactions are processed? A) Output control B) Network monitoring C) Backup recovery system D) Input validation control

D) Input validation control

What is an example of a physical access control? A) Encrypting database records B) Implementing network firewalls C) Using keycards for data center entry D) Running antivirus scans

C) Using keycards for data center entry

Which of the following is NOT an input validation technique? A) Limit test B) Completeness check C) Output formatting D) Field check

C) Output formatting

What type of software assists in data analysis and report generation? A) Text editor B) Web browser C) Email client D) Generalized audit software (GAS)

D) Generalized audit software (GAS)

Which IT audit technique introduces test data into a live system without the knowledge of management? A) Integrated Test Facility (ITF) B) Test data approach C) Parallel simulation D) Black box auditing

A) Integrated Test Facility (ITF)

What is an embedded audit module? A) A physical component of the CPU B) A technique for processing test data C) A feature of network firewalls D) A program built into an application to monitor transactions

D) A program built into an application to monitor transactions

What type of control protects data during transmission? A) Firewall installation B) User authentication C) Encryption D) Role-based access control

C) Encryption

What technique is used to confirm that transactions are processed accurately? A) Data encryption B) Role-based access control C) Hash total verification D) Limit test

C) Hash total verification

What IT audit method involves directly examining the processing logic of a program? A) Parallel simulation B) Test data approach C) Auditing around the computer D) Code review

D) Code review

What type of backup system follows the Grandfather-Father-Son principle? A) Cloud storage B) RAID storage C) Network-attached storage D) Batch file retention system

D) Batch file retention system

Which is a key feature of a hot site in disaster recovery? A) Requires manual installation of hardware B) Pre-configured with necessary IT infrastructure C) Stores only archived data D) Located on external hard drives

B) Pre-configured with necessary IT infrastructure

What does an IT security log track? A) Financial transactions B) Failed login attempts and security breaches C) IT department employee work schedules D) Business marketing plans

B) Failed login attempts and security breaches

What technique involves marking specific transactions for tracking throughout the system? A) Flowcharting B) Transaction tagging C) Integrated test facility D) Test data approach

B) Transaction tagging

Which of the following is NOT a feature of database management systems (DBMS)? A) Data retrieval B) Data storage C) Query execution D) Printing financial statements

D) Printing financial statements

What is the purpose of a firewall in IT security? A) Encrypt stored data B) Prevent unauthorized network access C) Prevent physical damage to hardware D) Authenticate software licenses

B) Prevent unauthorized network access

What technique captures and stores audit data as transactions occur? A) Data archiving B) Data compression C) Continuous auditing D) Firewall logging

C) Continuous auditing

What is the main function of audit hooks in an IT system? A) Store transaction records B) Monitor transactions in real time and flag unusual activity C) Process payroll transactions D) Restrict user access

B) Monitor transactions in real time and flag unusual activity

What does a parity check do? A) Encrypts passwords B) Detects network intrusions C) Manages database queries D) Verifies the integrity of transmitted data

D) Verifies the integrity of transmitted data

What is the primary purpose of an access control list (ACL)? A) Encrypt sensitive data B) Monitor system performance C) Restrict or permit access to specific system resources D) Automate financial reporting

C) Restrict or permit access to specific system resources

What is the main function of a program compiler? A) Debug software errors B) Execute system commands C) Convert source code into machine-readable object code D) Manage database records

C) Convert source code into machine-readable object code

What is an example of a hardware control in IT security? A) Firewalls B) Encryption software C) Boundary protection for memory allocation D) Virus scanning

C) Boundary protection for memory allocation

What IT audit method involves reprocessing actual transactions using an auditor’s copy of the client’s software? A) Parallel simulation B) Black box approach C) Controlled reprocessing D) Test data approach

C) Controlled reprocessing

What is a risk of not implementing segregation of duties in an IT environment? A) Slower system processing B) Increased hardware costs C) Increased fraud and unauthorized changes D) Reduced data storage capacity

C) Increased fraud and unauthorized changes

What does an intrusion detection system (IDS) do? A) Encrypts stored passwords B) Prevents unauthorized access to physical files C) Monitors and detects unauthorized access to a network D) Restricts file access to internal users

C) Monitors and detects unauthorized access to a network

What is a logic test in input validation? A) Converts input data into machine code B) Encrypts sensitive financial transactions C) Rejects illogical or inconsistent data entries D) Verifies software licensing

C) Rejects illogical or inconsistent data entries

What does a data completeness check ensure? A) Input data is encrypted B) All required fields are filled before processing continues C) Processing follows a batch schedule D) Transactions are permanently stored

B) All required fields are filled before processing continues

What is the main risk of a single sign-on (SSO) authentication system? A) If compromised, all systems are exposed to unauthorized access B) It slows down user authentication C) It does not support multiple devices D) It increases IT costs significantly

A) If compromised, all systems are exposed to unauthorized access

What IT control ensures that only authorized transactions are recorded? A) Backup procedures B) Application controls C) Firewall settings D) Data compression techniques

B) Application controls

What is the purpose of a self-checking digit in input validation? A) Convert data into machine language B) Detect errors in numeric data fields C) Store system logs D) Encrypt email messages

B) Detect errors in numeric data fields

What is the main disadvantage of a cold site disaster recovery center? A) Expensive to maintain B) Requires time to set up hardware and software before use C) Limited storage capacity D) Can only store financial data

B) Requires time to set up hardware and software before use

What does a role-based access control (RBAC) system do? A) Grants system access based on user roles and responsibilities B) Encrypts database records C) Restricts unauthorized external access D) Prevents power failures

A) Grants system access based on user roles and responsibilities

What does an optical character recognition (OCR) device do? A) Encrypts input data B) Processes SQL queries C) Converts printed text into digital format D) Detects computer viruses

C) Converts printed text into digital format

What is a potential risk of an automated audit system? A) Dependence on system-generated data, which may be manipulated B) Slower transaction processing C) Increased manual work D) Less efficient than manual audits

A) Dependence on system-generated data, which may be manipulated

What is the main function of a test data approach in IT auditing? A) Determine if the system properly processes transactions B) Store financial statements C) Encrypt sensitive files D) Generate network security logs

A) Determine if the system properly processes transactions

What is the purpose of a system control audit review file (SCARF)? A) Log and store information for later audit review B) Manage payroll records C) Process real-time transactions D) Encrypt sensitive company data

A) Log and store information for later audit review

Which IT audit technique runs transactions using both client and auditor software to compare results? A) Code review B) White box testing C) Parallel simulation D) Transaction tagging

C) Parallel simulation

Which of the following statements about IT security controls is INCORRECT? A) Firewalls help prevent unauthorized network access. B) A weak password policy has no impact on IT security. C) Multi-factor authentication enhances user security. D) Data encryption protects information from unauthorized access.

B) A weak password policy has no impact on IT security.

Which of the following statements about database management is CORRECT? A) A Database Management System (DBMS) reduces data redundancy and ensures data integrity. B) A database system does not require access controls. C) Data stored in a DBMS cannot be backed up. D) DBMS slows down data retrieval compared to paper records.

A) A Database Management System (DBMS) reduces data redundancy and ensures data integrity.

Which of the following statements about IT auditing is INCORRECT? A) The white box approach involves directly examining system processes. B) The black box approach focuses only on inputs and outputs. C) Test data techniques cannot detect errors in automated controls. D) Parallel simulation compares client and auditor processing results.

C) Test data techniques cannot detect errors in automated controls.

Which of the following statements about disaster recovery is CORRECT? A) A cold site is immediately ready for use in case of system failure. B) A hot site has pre-installed hardware and software for quick recovery. C) Backups are unnecessary if an organization uses a cloud-based system. D) Disaster recovery plans are only required for financial institutions.

B) A hot site has pre-installed hardware and software for quick recovery.

Which of the following statements about IT controls is INCORRECT? A) General IT controls only apply to application software and not hardware. B) Application controls help ensure the accuracy and completeness of transactions. C) Role-based access control (RBAC) restricts user access based on job roles. D) Strong IT controls reduce the risk of unauthorized system access.

A) General IT controls only apply to application software and not hardware.