Auditing and IT Flashcards

1
Q

Auditing IC in a company’s IT environment helps: (@)

A

Plan the rest of the audit

assess the level of control risk

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2
Q

Assess the level of Control Risk

A

Focus on general controls

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3
Q

When is Audit of IT not required? (3)

A

Controls are redundant to another department
System doesn’t appear to be reliable and testing controls would be an efficient use of time
COSTS > BENEFIT

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4
Q

Database Admin (3)

A

Maintains Database
Restricts Access
Responsible for IT IC

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5
Q

Systems Analyst (2)

A

Recommends changes or upgrades

Liaison between IT and users

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6
Q

Librarian (2)

A

Responsible for disc storage

Holds System Documentation

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7
Q

What is Generalized Audit Strategy (5)

A

Uses computer speed to quickly sort data and files, which leads to a more efficient audit
Compatible with different client IT systems
Extracts evidence from client databases
Tests data without auditor needing to spend time learning the IT system in detail
Client tailored or commercially produced

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8
Q

What is check digits?

A

Consistently added to a set of of numbers

Makes it more difficult for a fraudulent account to be set up or go undetected

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9
Q

What is limit test?

A

Examines data and looks for reasonableness using upper and lower limits

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10
Q

What is test data method?

A

Auditor processes data with client’s computer
Fake transactions are used to test program control procedures
Each control needs to only be tested once

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11
Q

What are embedded audit modules?

A

Assist audit calculations

Enable continuous monitoring in an audit environment that is changing

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12
Q

Systems vs Application Outputs

A

if the auditor only audits the outputs of a computer system and doesn’t also audit the software applications, an error in the application could be missed

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13
Q

Compiler

A

Software that translates source program into a language that the computer can understand

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14
Q

What is parallel simulation

A

Client data is processed using generalized audit software
Sample size can be expanded without significantly increasing the audit cost
Gas Outpot compared to client output

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