Question 1

An example of an access control is a:
A)Check digit.
B)Password.
C)Test facility.
D)Read only memory.

Accepted Answer

A password is a common example of access control, as it restricts access to users who have the correct credentials to log in. Check digits are used for error detection, test facilities are used for testing systems, and read-only memory is a type of computer memory that cannot be altered.

Question 2

A data warehouse is an example of:
A)Online analytical processing.
B)Online transaction processing.
C)Essential information batch processing.
D)Decentralized processing.

Accepted Answer

A data warehouse is an example of online analytical processing (OLAP), which is a technology used to perform complex analytical queries and generate reports based on historical data stored in the data warehouse. OLAP is designed for querying and analyzing large amounts of data in a fast and efficient manner, which is different from online transaction processing (OLTP) that is used for day-to-day operations and real-time data processing. Essential information batch processing and decentralized processing are not related to the concept of data warehouses.

Question 3

Which of the following personnel is responsible for determining the computer processing needs of the various users?
A)The application programmer.
B)The computer operator.
C)The systems analyst.
D)The systems programmer.

Accepted Answer

The systems analyst is responsible for analyzing the computer processing needs of the various users and translating them into system requirements for the programmers and operators to implement. The application programmer is responsible for writing specific programs to meet those needs, the computer operator is responsible for managing the daily operations of the computer system, and the systems programmer is responsible for maintaining the system software itself.

Question 4

When designing the physical layout of a data processing center,which of the following would be least likely to be a necessary control that is considered? A)Design of controls to restrict access. B)Adequate physical layout space for the operating system. C)Inclusions of an adequate power supply system with surge protection. D)Consideration of risks related to other uses of electricity in the area.

Accepted Answer

The physical space for the operating system would be important, but it is not a control measure. A, C, and D are all necessary controls that should be considered in designing the physical layout of a data processing center. Restricting access helps prevent unauthorized access, an adequate power supply system with surge protection helps prevent damage from electrical fluctuations, and consideration of risks related to other uses of electricity in the area helps prevent potential hazards such as fires.

Question 5

Which of the following is not programmed as a processing control? A)Private lines. B)Validity tests. C)Self-checking numbers. D)Limit tests.

Accepted Answer

Private lines are not programmed as a processing control. Private lines are a form of technology that enables secure communication between two or more points. While private lines may be used to facilitate secure communication during data processing, they are not a control programmed into the processing system itself. The other options listed (validity tests, self-checking numbers, and limit tests) are all examples of processing controls.

Question 6

Which of the following is not a distinctive characteristic of advanced IT systems? A)Data communication. B)Integrated database. C)Batch processing of transactions. D)Distributive data processing.

Accepted Answer

Batch processing of transactions is a characteristic of traditional IT systems, not advanced ones. Advanced IT systems have real-time processing capabilities and do not require batch processing. The other options - data communication, integrated database, and distributive data processing - are all distinctive characteristics of advanced IT systems.

Question 7

Which of the following would be least likely to be considered a desirable attribute of a database management system? A)Data redundancy. B)Quick response to users' request for information. C)Control of users' identification numbers and passwords. D)Logging of terminal activity.

Accepted Answer

Data redundancy means having multiple copies of the same data, which can lead to inconsistencies and inefficiencies in the database. It is considered a drawback rather than a desirable attribute of a database management system.

Question 8

Which of the following testing techniques minimizes the possibility that the auditors will contaminate a client's financial records?
A)Test data.
B)Integrated test facilities.
C)Controlled programs.
D)Tagging and tracing transactions.

Accepted Answer

The answer of Which of the following testing techniques minimizes...

Question 9

Substantive procedures that cannot be performed with generalized audit software include:
A)Performing certain analytical procedures,such as inventory turnover.
B)Observing inventory.
C)Recomputing depreciation.
D)Selecting audit samples.

Accepted Answer

Observing inventory requires the physical presence of the auditor and therefore cannot be performed using generalized audit software. The other options listed can be performed using specialized software programs.

Question 10

End user computing is most likely to occur on which of the following types of computers?
A)Mainframe.
B)Relational databased computers.
C)Personal computers,tablets and other such devices.
D)Personal reference assistants.

Accepted Answer

End user computing refers to the use of computers and related technologies by non-technical individuals to accomplish various tasks. Personal computers, tablets, and other such devices are the most common types of computers used for end user computing as they are designed for individual use and are easily accessible and portable. Mainframes and relational database computers, on the other hand, are typically used in large-scale enterprise environments and require technical expertise to operate. Personal reference assistants are a type of handheld device used for personal organization and management and are not typically used for broader computing tasks.

Question 11

Which of the following is not a data communication control? A)Data encryption. B)Parity check. C)Message acknowledgment techniques. D)Distributed data processing.

Accepted Answer

Distributed data processing is not a data communication control. It refers to a method of processing data in which different parts of a computer program are run simultaneously on two or more computers that are communicating with each other over a network. Data encryption, parity check, and message acknowledgment techniques are all data communication controls used to ensure the accuracy and security of data being transmitted over a network.

Question 12

In a client/server environment,the "client" is most likely to be the:
A)Supplier of the computer system.
B)Computers of various users.
C)Computer that contains the networks software and provides services to a server.
D)Database administrator.

Accepted Answer

In a client/server environment, the "client" refers to the computers of various users accessing a network and requesting services from a server. The server, on the other hand, contains the network software and provides requested services to the clients. Therefore, option B is the best choice.

Question 13

Which of the following personnel is responsible for the proper functioning of the security features built into the operating system?
A)The systems programmer.
B)The application programmer.
C)The computer operator.
D)The telecommunications specialist.

Accepted Answer

The systems programmer is responsible for the development and maintenance of the operating system, including security features. They ensure that security features are properly implemented and functioning effectively. Application programmers develop software applications, computer operators manage and monitor computer systems, and telecommunications specialists oversee network communication.

Question 14

General controls over IT systems are typically tested using:
A)Generalized audit software.
B)Observation,inspection,and inquiry.
C)Program analysis techniques.
D)Test data.

Accepted Answer

General controls over IT systems are typically tested using observation, inspection, and inquiry. This involves reviewing system documentation, interviewing personnel, and observing system processes to evaluate the effectiveness of control activities. Generalized audit software, program analysis techniques, and test data may be used to test application controls or specific IT-related controls, but they are not typically used to evaluate general controls.

Question 15

A system in which each department member is responsible for the development and execution of the computer application that he or she uses is referred to as:
A)Stand-alone computing.
B)End user computing.
C)Distributed computing.
D)Decentralized computing.

Accepted Answer

End user computing is a system in which each department member is responsible for the development and execution of the computer application that he or she uses. This approach allows for greater flexibility and responsiveness to departmental needs, but can also lead to potential issues such as inconsistency and lack of standardization.

Question 16

The auditors are least likely to "audit around the computer" when: A)Input transactions are batched and system logic is straightforward. B)Processing primarily consists of sorting the input data and updating the master file sequentially. C)Processing is primarily online and updating is real-time. D)Outputs are in hard copy form.

Accepted Answer

"Auditing around the computer" refers to auditing methods that do not directly involve examining the processes within the computer system. Instead, auditors focus on the inputs and outputs of the system. This approach becomes less feasible or likely when processing is primarily online and updating is real-time (option C), as the complexity and immediacy of these processes necessitate a more direct examination of the system's internal workings.

Question 17

When conducting fieldwork for a physical inventory,an auditor is least likely to perform which of the following steps using a generalized audit software package? A)Observing inventory. B)Selecting sample items of inventory. C)Analyzing data resulting from inventory. D)Recalculating balances in inventory reports.

Accepted Answer

Observing inventory involves physically being present and visually inspecting the items, which cannot be performed using a software package. All other options (B, C, and D) can be performed using a generalized audit software package.

Question 18

A problem for a CPA associated with advanced IT systems is that:
A)The audit trail normally does not exist.
B)The audit trail is sometimes generated only in machine readable form.
C)The client's internal auditors may have been involved at the design stage.
D)Tests of controls are not possible.

Accepted Answer

With advanced IT systems, the audit trail may be generated only in machine-readable form, which can make it difficult for a CPA to access and review. This can pose a problem during an audit, as it may make it harder to verify the accuracy and completeness of financial data.

Question 19

The best method of achieving internal control over advanced IT systems is through the use of:
A)Batch controls.
B)Controls written into the computer system.
C)Equipment controls.
D)Documentation controls.

Accepted Answer

Controls written into the computer system provide the most effective means of achieving internal control over advanced IT systems. This involves building in automated checks and balances within the system itself to prevent errors, fraud, or unauthorized access. Batch controls, equipment controls, and documentation controls can also be useful, but they are not as comprehensive or reliable as controls built directly into the system.

Question 20

Which of the following testing techniques is more commonly used by internal auditors than by independent auditors?
A)Integrated test facilities.
B)Test data.
C)Controlled programs.
D)Tagging and tracing transactions.

Accepted Answer

Integrated test facilities are more commonly used by internal auditors because they allow auditors to test the system using fictitious inputs without affecting actual data, which is particularly useful for ongoing system checks from within the organization.

Quiz 8: Consideration of Internal Control in an Information Technology Environment

An example of an access control is a:

A data warehouse is an example of:

Which of the following personnel is responsible for determining the computer processing needs of the various users?

When designing the physical layout of a data processing center,which of the following would be least likely to be a necessary control that is considered?

Which of the following is not programmed as a processing control?

Which of the following is not a distinctive characteristic of advanced IT systems?

Which of the following would be least likely to be considered a desirable attribute of a database management system?

Which of the following testing techniques minimizes the possibility that the auditors will contaminate a client's financial records?

Substantive procedures that cannot be performed with generalized audit software include:

End user computing is most likely to occur on which of the following types of computers?

Which of the following is not a data communication control?

In a client/server environment,the "client" is most likely to be the:

Which of the following personnel is responsible for the proper functioning of the security features built into the operating system?

General controls over IT systems are typically tested using:

A system in which each department member is responsible for the development and execution of the computer application that he or she uses is referred to as:

The auditors are least likely to "audit around the computer" when:

When conducting fieldwork for a physical inventory,an auditor is least likely to perform which of the following steps using a generalized audit software package?

A problem for a CPA associated with advanced IT systems is that:

The best method of achieving internal control over advanced IT systems is through the use of:

Which of the following testing techniques is more commonly used by internal auditors than by independent auditors?