The Effect of Information Technology on the Audit

Question 1

What are the segregation of duties in IT?

Answer 1

Control Team, Operators, Programmers, Analysts, Librarian

Question 2

What increass the likelihood of unauthorized access?

Answer 2

The opportunity for remote access to data in networked environments

Question 3

What is the technique called when the auditor electronically marks specific transactions and follow them through the client’s system?

Answer 3

Transaction tagging

Question 4

Are client’s informed when the auditor uses the Integrated Test Facility?

Answer 4

No

Question 5

When using Integrated Test Facility, does the auditor use live data?

Answer 5

Yes

Question 6

What is the technique called where the auditor re-processes some or all of the client’s data and then compares the results with the client’s files?

Answer 6

Parallel simulation

Question 7

What is the primary disadvantage of auditing with a computer?

Answer 7

Audit documentation may not contain readily observable details of calculations