Quiz (October 7, 2021) Flashcards
Check digits are designed to detect transcription errors.
T or F?
TRUE
Passwords for microcomputer software programs are designed to prevent unauthorized use of the software.
T or F?
TRUE
Auditing around the computer is also known as white box approach.
T or F?
FALSE
Auditing around the computer is also known as black box approach.
When auditing around the computer, the independent auditor focuses solely upon the source documents and the CIS output.
T or F?
TRUE
The same internal control objectives apply to manual and computer-based information system.
T or F?
TRUE
Tests of controls determine whether the database contents fairly reflect the organization’s transactions.
T or F?
FALSE
In auditing through a computer, the test data method is used by auditors to test the procedures contained within the program.
T or F?
TRUE
Output controls are designed to assure that information generated by the computer are used appropriately by management.
T or F?
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.
Pilot simulation is one of the three categories of testing strategies when auditing through the computer.
T or F?
FALSE
Three categories of testing strategies:
- test data approach
- parallel simulation
- embedded audit module.
A method of testing application controls that utilizes a generalized audit software package prepared by the auditors.
PARALLEL SIMULATION
It is employed to prevent unauthorized alteration of on-line records.
DATABASE ACCESS CONTROLS
Controls which are designed to assure that the data will be processed by the computer is authorized, complete, and accurate are called _____.
INPUT CONTROLS
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 _________.
TEST DATA APPROACH
The process of assessing control risk considering only non IT
controls is known as _______.
AUDITING AROUND THE COMPUTER
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 ______.
GENERALIZED AUDIT SOFTWARE APPROACH
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.
COMPUTER-ASSISTED AUDIT TECHNIQUE
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.
INTEGRATED TEST FACILITY
A computer-assisted auditing technique that inserts an audit module in the client’s application system to identify specific types of transactions.
EMBEDDED AUDIT MODULE
Totals of amounts in computer record data fields, which are not
usually added but are used only for data processing control
purposes are called ______.
HASH TOTALS
Controls over output are not designed to assure that the data generated by the computer are relevant.
T or F?
TRUE
