Information Technology

Question 1

When is an audit of IT not required?

Answer 1

An audit of IT is NOT required if:
- Controls are redundant to another department.
- The system does not appear to be reliable and
testing controls would not be an efficient use of
time.
- Costs exceed benefit.

Question 2

When can an audit of IT be performed without directly interacting with the system?

Answer 2

An audit of IT can be performed without directly interacting with the system when:

  - System isn't complex or complicated.
  - System output is detailed.

Question 3

What is the role of a Database Administrator?

Answer 3

• Maintains database
• Restricts access
• Responsible for IT internal control

Question 4

What is the role of a Systems Analyst?

Answer 4

The role of a systems analyst includes:

 - Recommending changes or upgrades
 - Liaison between IT and users

Question 5

What is the role of the Data Librarian?

Answer 5

The Data Librarian is:

- Responsible for storage
- Holds system documentation

Question 6

What is the benefit of Generalized Audit Software in an audit?

Answer 6

• 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

Question 7

What is a Relational Database?

Answer 7

A Relational Database is a group of related spreadsheets. Information is retrieved through Queries.

Question 8

What is a Data Definition Language?

Answer 8

A Data Definition Language is a language that:

 - Defines a database
 - Gives information on database structure
 - Maintains tables, which can be joined together
 - Establishes database constraints.

Question 9

What functions are performed by a Data Manipulation Language?

Answer 9

A Data Manipulation Language maintains and queries a database. Client uses DML to get the information needed by auditor.

Question 10

What functions are performed by a Data Control Language?

Answer 10

A Data Control Language controls a database and restricts access to the database.

Question 11

What is a Check Digit?

Answer 11

A check digit is a numerical character consistently added to a set of numbers. It makes it more difficult for a fraudulent account to be set up or go undetected.

Question 12

What is the purpose of a Code Review?

Answer 12

A Code Review tests a program’s processing logic. It is advantageous because auditor gains a greater understanding of the program.

Question 13

What is the purpose of a Limit Test?

Answer 13

A Limit Test examines data and looks for reasonableness using upper and lower limits to determine if data fits the correct range. Did anyone score higher than 100%?

Question 14

What is the Test Data Method?

Answer 14

Auditor processes data with client’s computer; fake transactions are used to test program control procedures. Each control needs to be tested only once. The problem with this method is that fake data could combine with real data.

Question 15

How can Operating Systems Logs be utilized during an audit?

Answer 15

Auditor can review logs to see which applications were run and by whom.

Question 16

What is the purpose of Access Security Software?

Answer 16

Access Security Software is helpful in online environments. It restricts computer access - may use encryption.

Question 17

How can Library Management Software assist with an audit?

Answer 17

Library Management Software logs any changes to system/applications etc.

Question 18

How can Embedded Audit Modules in software be utilized in an audit?

Answer 18

Embedded Audit Modules in software can be used in an audit to:
- Assist with audit calculations
- Enable continuous monitoring in an audit
environment that is changing

Weakness: requires implementation into the system design Example: SCARF - Collects information based on some criteria and can be analyzed at a later time (necessary because the audit environment is continually changing)

Question 19

What is an Audit Hook?

Answer 19

An Audit Hook is an application instruction that gives auditor control over the application.

Question 20

What is the purpose of Transaction Tagging?

Answer 20

Transaction Tagging allows logging of company transactions and activities.

Question 21

How do Extended Records assist in audit trail creation?

Answer 21

Extended Records add audit data to financial records.

Question 22

How does Real Time Processing affect an audit?

Answer 22

• Destroys prior data when updated
• Also known as Destructive Updating
• Requires well-documented Audit Trail

Question 23

What is the risk of Auditing System outputs versus Application outputs?

Answer 23

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

Question 24

What is a compiler?

Answer 24

A compiler is a software that translates source program (similar to English) into a language that the computer can understand.

Question 25

How is Parallel Simulation utilized during an audit?

Answer 25

• Client data is processed using Generalized Audit
  Software (GAS).
• Sample size can be expanded without significantly
  increasing the audit cost.
• GAS output is compared to client output.

Question 26

What does auditing internal control in a company’s IT environment accomplish?

Answer 26

• Plan the rest of audit - Shorter audit trails that may
  expire- Less documentation
• Assess the level of Control Risk - Unauthorized
  access to systems or data is more difficult to catch
• Systems access controls add another layer to
  separation of duties analysis
• Focus should be on the general controls - new
  systems development - current systems changes -
  and program or data access control or computer ops
  control changes