IT (Computer Auditing Flashcards
Which of the following is not a major reason for maintaining an audit trail for a computer system?
Analytical procedures
Which of the following most likely represents a significant deficiency in the internal control structure?
The systems programmer designs systems for computerized applications and maintains output controls
An auditor most likely would test for the presence of unauthorized EDP program changes by running a
Source code comparison program
Which of the following is an inherent limitation in internal control?
Faulty human judgment
In a computerized payroll system environment, an auditor would be least likely to use test data to test controls related to
Proper approval of overtime by supervisors
Mill Co. uses a batch processing method to process its sales transactions.
Data on Mill’s sales transaction tape are electronically sorted by customer number and are subjected to programmed edit checks in preparing its invoices, sales journals, and updated customer account balances.
One of the direct outputs of the creation of this tape most likely would be a
Report showing exceptions and control totals
When an auditor tests the internal controls of a computerized accounting system, which of the following is true of the test data approach?
Test data are processed with the client’s computer and the results are compared with the auditor’s predetermined results
Which of the following is the primary reason that many auditors hesitate to use embedded audit modules?
Auditors are required to be involved in the system design of the application to be monitored
Which of the following computer-assisted auditing techniques allows fictitious and real transactions to be processed together without client operating personnel being aware of the testing process?
Integrated test facility
An auditor using audit software probably would be least interested in which of the following fields in a computerized perpetual inventory file?
Economic order quantity
Which of the following computer-assisted auditing techniques processes client input data on a controlled program under the auditor’s control to test controls in the computer system?
Parallel simulation
Which of the following is usually a benefit of transmitting transactions in an electronic data interchange (EDI) environment?
A compressed business cycle with lower year-end receivables balances
Which of the following is usually a benefit of using electronic funds transfer for international cash transactions?
Reduction of the frequency of data entry errors
Indirect labor is a
Conversion cost
In a traditional job order cost system, the issue of indirect materials to a production department increases
Factory overhead control
In a process cost system, the application of factory overhead usually would be recorded as an increase in
Work-in-process inventory control
When using a flexible budget, a decrease in production levels within a relevant range
Decreases total costs
In an activity-based costing system, what should be used to assign a department’s manufacturing overhead costs to products produced in varying lot sizes?
Multiple cause and effect relationships
Where one part of an organization provides an essential business process where previously it had been provided by multiple parts of that same organization, this is called
Shared services
A manufacturing company has several product lines. Traditionally, it has allocated manufacturing overhead costs between product lines based on total machine hours for each product line. Under a new activity-based costing system, which overhead cost would be most likely to have a new cost driver assigned to it?
Employee benefits expense
