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ACIT > CHAPTER 1 > Flashcards

CHAPTER 1 Flashcards

Quiz 1

1
Q

What is the residual effect is that the increased use of technology has resulted in increased budgets, increased successes and failures, and better awareness of the need for control?

A

IT Environment

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2
Q

IT Environment is the residual effect is that the increased use of technology has resulted in increased budgets, increased successes and failures, and better awareness of the need for?

A

CONTROL

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3
Q

ERP stands for?

A

Enterprise Resource Planning

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4
Q

It is a software that provides standard business functionality in an integrated IT environment system

A

Enterprise Resource Planning

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5
Q

ERP reduces_________ and ________ and ________ of data from a single source

A

ERP reduces storage costs and increasing consistency and accuracy of data from a single source

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6
Q

ISACA stands for?

A

Information Systems Audit and Control Association

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7
Q

Cloud Computing > ISACA > PC Magazine > NIST

A

‘_’

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8
Q

Who stated that Cloud Computing is the use of the Internet (versus one’s computer’s hard drive) to store and access data and programs?

A

PC Magazine

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9
Q

NIST stands for?

A

National Institute of Standards and Technology

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10
Q

a “model for enabling ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources

A

Cloud Computing

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11
Q

a “model for enabling ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources, is stated by?

A

National Institute of Standards and Technology (NIST)

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12
Q

MDM Stands for?

A

Mobile Device Management

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13
Q

MDM is also known as?

A

EMM or Enterprise Mobility Management

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14
Q

responsible for managing and administering mobile devices provided to employees as part of their work responsibilities.

A

Mobile Device Management (MDM)

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15
Q

allowing direct access to corporate information always represents an ongoing risk, as well as raises security and compliance concerns for the organization.

A

Mobile Device Management (MDM)

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16
Q

IoT stands for?

A

Internet of Things

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16
Q

is a system that allows remote assets from “things” (e.g., devices, sensors, objects, etc.) to interact and communicate among them and with other network systems.

A

Internet of Things

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17
Q

What is called the huge volumes of raw data or data sets?

A

Big Data

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18
Q

Challenges of Big Data

A

analysis, capture, data curation, search, sharing, storage, transfer, visualization, querying, as well as updating.

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19
Q

EY Center for Board Matters’ made its publication when?

A

September 2015

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20
Q

EY stands for?

A

Ernst and Young

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21
Q

Challenges for Auditors?

A
  • Limited access to audit data
  • Scarcity of available and qualified personnel
  • Timely analytics of audit
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22
Q

Organizations that issued guidance, instructions, and supported studies and research in audit areas: (5)

A
  • ISACA (Information Systems Audit and Control Association)
  • AICPA (American Institute of Certified Public Accountants)
  • CICA (Canadian Institute of Chartered Accountants)
  • IIA (Institute of Internal Auditors)
  • ACFE (Association of Certified Fraud Examiners)
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23
Q

AICPA stands for?

A

American Institute of CPA

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24
Q

ISACA stands for

A

Information System Audit and Control Association

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25
Q

IIA

A

Institute of Internal Auditors

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26
Q

CICA stands for?

A

Canadian Institute of Chartered Accountants

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27
Q

ACFE Stands for

A

Association of Certified Fraud Examiners

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28
Q

Auditing Profession timeline:

A

1952 > 1973 > 2002 > 2008

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29
Q

Auditing Profession (1952)

A

Computers were commercialized

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30
Q

Auditing Profession (1973)

A

EFCA (Equity Funding Corporation of America) problems surfaced

  • Aud profession seriously looked at the lack of computer control on information system
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31
Q

Auditing Profession (2001)

A

The boom of Enron Case

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32
Q

Auditing Profession (2002)

A

Presence of WorldCom Fraud

33
Q

Auditing Profession (2001 and 2002)

A

-Enron and WorldCom Fraud
- Brought sketpicsm and downfall to the financial markets

34
Q

Auditing Profession (2008)

A
  • Unsound Mortgage strategies and poor risk management (US econ based)
35
Q

In 1973 under the Auditing Profession, who declared bankruptcy and why?

A

EFCA or Equity Funding Corporation of America declared bankruptcy due to computer-assisted fraud, leaning to falsification of its records particularly the receivables and marketable securities, losing as much as $200M

35
Q

What major national professional organization of certified public accountants gave response to EFCA?

A

AICPA ( American Institute of Certified Public Accountants)

36
Q

In 1973, _____ appointed a special committee to study whether the auditing standards of the day were adequate in such situations

A

AICPA

37
Q

In line with AICPA’s response to EFCA, in 1975 the committee issued its?

A

findings

38
Q

In line with AICPA’s response to EFCA, in 1974 what happened?

A

AICPA created its first standards covering the area.

39
Q

The issue of ________________ has come to the forefront of the audit community as
a result of major U.S. financial scandals and poor management,

A

Due Professional Care

40
Q

What are some of the major U.S Financial Scandals?

A

Waste Management (1998), Enron (2001), Worldcom (2002), American Insurance Group (2005), Lehman Brothers (2008), Bernard L. Madoff Securities LLC (2008), MF Global (2011), Anthem Inc. (2015), Wells Fargo (2016)

41
Q

SOX stands for?

A

Sarbanes-Oxley Act

42
Q

A famous act of 2002, vividly reminding about the due professional care.

A

Sarbanes-Oxley Act

43
Q

FCPA stands for?

A

Foreign Corrupt Practices Act

44
Q

package, mandating the most far-reaching changes Congress has imposed on the business world since the FCPA of 1977 and the Securities and Exchange Commission (SEC) Act of 1934.

A

Sarbanes-Oxley Act of 2002 (SOX)

45
Q

What are the 2 example of significant changes brought by SOX?

A
  1. PCAOB (Public Company Accounting Oversight Board)
  2. increase of criminal penalties for violations of securities laws.
46
Q

PCAOB stands for?

A

Public Company Accounting Oversight Board

47
Q
A
48
Q

This legislation mandated that companies whose securities
were sold publicly be audited annually by a Certified Public Accountant (CPA)

A

Financial Auditing

49
Q

The AICPA issued in 1993 a document called? to further define the importance of internal control in the attestation engagement.

A

“Reporting on an Entity’s Internal Control
Structure over Financial Reporting

49
Q

The AICPA issued in 1993 a document to further define the importance of ?

A

internal control in the attestation engagement.

50
Q

GAAP stands for?

A

Generally Accepted Accounitng Standards

51
Q

GAAS stands for?

A

Generally Accepted Auditing Standards

52
Q

The present governing body

A

FASB (Financial Accounting Standards Boards)

53
Q
A
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54
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54
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55
Q

What is the three categories of GAAS?

A

General Standards
Standards of Fieldwork
Standards of Reporting

56
Q

Created by the International Accounting Standards Board (IASB) to respond to the increasing global business environment and address the need to compare financial statements prepared in different countries

A

IFRS (International Financial Reporting Standards)

57
Q

set of accounting standards developed by the IASB that is becoming the global standard for preparing public company financial statements.

A

IFRS (International Financial Reporting Standards)

58
Q

What is the two major accounting standard-setting efforts?

A

US GAAP and IFRS

59
Q

independent, objective assurance and consulting activity designed to add value and improve an organization’s operations

A

Internal Audit Function

60
Q

assess and enhance their risk management, control, and governance processes, as well as accomplish their goals and objectives.

A

Internal Audit Function

61
Q

evaluates the reliability and the validity of systems controls in all forms.

A

External Audit Function

62
Q

minimize the amount of substantial auditing or testing of transactions required to render an opinion on the financial statements.

A

External Audit Function

63
Q

what is the 4 public accounting firms?

A

Deloitte
Ernst & Young
PricewaterhouseCoopers
KPMG

64
Q

what is the 3 composition of IS?

A

People
Process
Information Technology

65
Q

what is the components of IT

A

Hardware
Software
Communication

66
Q

Sub parts of IT

A

Input
Store
Process
Transmit
Output

… data

67
Q

formal, independent, and objective examination of an organization’s IT infrastructure to determine whether the activities involved in gathering, processing, storing, distributing, and using information comply with guidelines, safeguard assets, maintain data integrity, and operate effectively and efficiently to achieve the organization’s objectives

A

Information Technology Auditing

68
Q

TRUE OR FALSE.

Provides absolute assurance

A

FALSE

Provides REASONABLE assurance

69
Q
A

ACIT (1 decks)

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