Quiz (October 7, 2021)

Question 1

Check digits are designed to detect transcription errors.

T or F?

Answer 1

TRUE

Question 2

Passwords for microcomputer software programs are designed to prevent unauthorized use of the software.

T or F?

Answer 2

TRUE

Question 3

Auditing around the computer is also known as white box approach.

T or F?

Answer 3

FALSE

Auditing around the computer is also known as black box approach.

Question 4

When auditing around the computer, the independent auditor focuses solely upon the source documents and the CIS output.

T or F?

Answer 4

TRUE

Question 5

The same internal control objectives apply to manual and computer-based information system.

T or F?

Answer 5

TRUE

Question 6

Tests of controls determine whether the database contents fairly reflect the organization’s transactions.

T or F?

Answer 6

FALSE

Question 7

In auditing through a computer, the test data method is used by auditors to test the procedures contained within the program.

T or F?

Answer 7

TRUE

Question 8

Output controls are designed to assure that information generated by the computer are used appropriately by management.

T or F?

Answer 8

FALSE

Output controls are not designed to assure that information generated by the computer are used appropriately by management.

Output controls are designed to detect errors after the processing is completed.

Question 9

Pilot simulation is one of the three categories of testing strategies when auditing through the computer.

T or F?

Answer 9

FALSE

Three categories of testing strategies:
- test data approach
- parallel simulation
- embedded audit module.

Question 10

A method of testing application controls that utilizes a generalized audit software package prepared by the auditors.

Answer 10

PARALLEL SIMULATION

Question 11

It is employed to prevent unauthorized alteration of on-line records.

Answer 11

DATABASE ACCESS CONTROLS

Question 12

Controls which are designed to assure that the data will be processed by the computer is authorized, complete, and accurate are called _____.

Answer 12

INPUT CONTROLS

Question 13

The auditor’s objective to determine whether the client’s computer programs can correctly handle valid and invalid transactions as they arise is accomplished through _________.

Answer 13

TEST DATA APPROACH

Question 14

The process of assessing control risk considering only non IT
controls is known as _______.

Answer 14

AUDITING AROUND THE COMPUTER

Question 15

The audit approach in which the auditor runs his/her own program on a controlled basis in order to verify the client’s data recorded in a machine language is ______.

Answer 15

GENERALIZED AUDIT SOFTWARE APPROACH

Question 16

It involves application of auditing procedures using the computer as an audit tool and it includes computer programs and data the auditor uses as part of the audit procedures to process data of audit significance contained in an entity’s information systems.

Answer 16

COMPUTER-ASSISTED AUDIT TECHNIQUE

Question 17

A computer-assisted auditing technique that allows fictitious and real transactions to be processed together without client operating personnel being aware of the testing process.

Answer 17

INTEGRATED TEST FACILITY

Question 18

A computer-assisted auditing technique that inserts an audit module in the client’s application system to identify specific types of transactions.

Answer 18

EMBEDDED AUDIT MODULE

Question 19

Totals of amounts in computer record data fields, which are not
usually added but are used only for data processing control
purposes are called ______.

Answer 19

HASH TOTALS

Question 20

Controls over output are not designed to assure that the data generated by the computer are relevant.

T or F?

Answer 20

TRUE