Question 1

An audit software program that generates programs that perform certain audit functions,based on auditor specifications,is referred to as a(n)
A)input controls matrix.
B)CAATS.
C)embedded audit module.
D)mapping program.

Accepted Answer

The given scenario describes a Computer-Assisted Audit Technique (CAAT) software program that generates programs to perform specific audit functions based on auditor specifications. CAATs are designed to automate audit procedures and data analysis, providing greater efficiency and accuracy in the audit process. Option A is incorrect as an input control matrix pertains to a documentation of internal control procedures. Option C is incorrect as an embedded audit module refers to an audit program that is integrated into a software application. Option D is incorrect as a mapping program pertains to the process of matching data from one source to another.

Question 2

Describe the disadvantages of test data processing.

Accepted Answer

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Question 3

Define and give examples of embedded audit modules.

Accepted Answer

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Question 4

An auditor sets an embedded audit module to flag all credit transactions in excess of $5,000.The flag causes the system state to be recorded before and after each transaction is processed.The auditor is using
A)audit hooks.
B)an integrated test facility.
C)the snapshot technique.
D)a system control audit review file.

Accepted Answer

The snapshot technique is used when an embedded audit module is set to flag certain transactions, which causes the system state to be recorded before and after each transaction. This allows the auditor to review and analyze the flagged transactions for any unusual or suspicious activity. This technique helps to detect errors, fraud or other irregularities in the transactions.

Question 5

Briefly describe tests that can be used to detect unauthorized program modifications.

Accepted Answer

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Question 6

When programmers are working with program code,they often employ utilities that are also used in auditing.For example,as program code evolves,it is often the case that variables defined during the early part of development become irrelevant.The occurrences of variables that are not used by the program can be found using
A)program tracing.
B)scanning routines.
C)mapping programs.
D)embedded audit modules.

Accepted Answer

Scanning routines are typically used in auditing to detect anomalies or errors in data, but they can also be used to identify unused variables in program code. Program tracing and mapping programs are not specifically designed for this purpose, and embedded audit modules are typically used for more specific auditing tasks within a program.

Question 7

How has the U.S.government deployed computer-assisted audit techniques to reduce the budget?
A)To identify fraudulent Medicare claims.
B)To identify fraudulent defense spending.
C)To identify fraudulent tax returns.
D)All of the above.

Accepted Answer

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Question 8

Explain why the auditor's role in program development and acquisition should be limited.

Accepted Answer

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Question 9

a)What is test data processing? b)How is it done? c)What are the sources that an auditor can use to generate test data?

Accepted Answer

The answer of a)What is test data processing? b)How is...

Question 10

Audit tests and procedures traditionally have been performed on a sample basis.Do options exist for auditors to test significantly more (or all)transactions?

Accepted Answer

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Question 11

An auditor might use ________ to convert data from several sources into a single common format.
A)Windows Media Converter
B)concurrent audit technique
C)computer assisted audit techniques software
D)Adobe Professional

Accepted Answer

Computer assisted audit techniques software (CAATs) can be used to convert data from multiple sources into a common format. This can help the auditor to analyze and compare the data more easily. Options A, D, and B are not relevant to this process.

Question 12

When programmers are working with program code,they often employ utilities that are also used in auditing.For example,as program code evolves,it is often the case that blocks of code are superseded by other blocks of code.Blocks of code that are not executed by the program can be identified by
A)embedded audit modules.
B)scanning routines.
C)mapping programs.
D)automated flow charting programs.

Accepted Answer

Mapping programs are used to identify blocks of code that are not executed by the program, helping programmers to understand which parts of the code are active and which are not.

Question 13

What is the primary purpose of computer audit software?
A)To eliminate auditor judgment errors.
B)To assist the auditor in retrieving and reviewing information.
C)To help auditors detect unauthorized modifications to system program code.
D)To help auditors recheck all mathematical calculations,cross-foot,reprocess financial statements and compare to originals.

Accepted Answer

The primary purpose of computer audit software is to assist the auditor in retrieving and reviewing information. It helps in data analysis and detecting anomalies in the data. While it may provide some level of assurance against errors, fraud or misstatements, it cannot completely eliminate auditor judgment errors. Additionally, it can help in checking calculations and comparing financial statements, but its primary role is in aiding the auditor in the audit process. While it may also aid in detecting unauthorized modifications to system program code, this is not its primary purpose.

Question 14

When doing an information systems audit,auditors must review and evaluate the program development process.What errors or fraud could occur during the program development process?

Accepted Answer

The answer of When doing an information systems audit,auditors must...

Question 15

An auditor creates a fictitious customer in the system and then creates several fictitious sales to the customer.The records are then tracked as they are processed by the system.The auditor is using
A)an integrated test facility.
B)the snapshot technique.
C)a system control audit review file.
D)continuous and intermittent simulation.

Accepted Answer

The auditor is using an integrated test facility, which is a technique where fictitious transactions are created and processed through the system to test its functionality and controls. This helps to identify any weaknesses or errors in the system before actual transactions are processed.

Question 16

An auditor might use ________ to examining large data files.
A)Excel
B)Access
C)IDEA
D)SQL

Accepted Answer

IDEAS (Interactive Data Extraction and Analysis Software) is a specialized software that is designed specifically for auditors and accountants to efficiently and effectively examine large data files.

Answer: D 
 SQL (Structured Query Language) is a programming language that is commonly used for managing and manipulating large datasets. While it may not be specifically designed for auditors, it can be a powerful tool for data analysis when used properly. However, it requires a certain level of expertise to use effectively.

Question 17

An auditor sets an embedded audit module to flag questionable online transactions,display information about the transaction on the auditor's computer,and send a text message to the auditor's cell phone.The auditor is using
A)the snapshot technique.
B)a system control audit review file.
C)audit hooks.
D)continuous and intermittent simulation.

Accepted Answer

The auditor is using audit hooks, which are code insertion techniques used to monitor transactions or events within an information system. The embedded audit module with the specified triggers is an example of an audit hook. The other options (snapshot technique, system control audit review file, and continuous and intermittent simulation) do not accurately describe the technique used by the auditor.

Question 18

An auditor sets an embedded audit module to selectively monitor transactions.Selected transactions are then reprocessed independently,and the results are compared with those obtained by the normal system processing.The auditor is using
A)an integrated test facility.
B)the snapshot technique.
C)a system control audit review file.
D)continuous and intermittent simulation.

Accepted Answer

The answer of An auditor sets an embedded audit module...

Question 19

The use of a secure file library and restrictions on physical access to data files are control procedures used together to prevent
A)an employee or outsider obtaining data about an important client.
B)a data entry clerk from introducing data entry errors into the system.
C)a computer operator from losing or corrupting files or data during transaction processing.
D)programmers making unauthorized modifications to programs.

Accepted Answer

These control procedures are designed to prevent unauthorized access to data, which includes preventing an employee or outsider from obtaining sensitive information about clients.

Question 20

An auditor sets an embedded audit module to record all credit transactions in excess of $5,000 and stores the data in an audit log.The auditor is using
A)audit hooks.
B)the snapshot technique.
C)a system control audit review file.
D)continuous and intermittent simulation.

Accepted Answer

A system control audit review file (SCARF) is used by auditors to collect data on transactions that meet specific criteria, such as transactions over a certain amount, for later review. This approach allows auditors to analyze transactions that could be of interest without having to review all transactions manually.

Quiz 11: Auditing Computer-Based Information Systems

An audit software program that generates programs that perform certain audit functions,based on auditor specifications,is referred to as a(n)

Describe the disadvantages of test data processing.

Define and give examples of embedded audit modules.

An auditor sets an embedded audit module to flag all credit transactions in excess of $5,000.The flag causes the system state to be recorded before and after each transaction is processed.The auditor is using

Briefly describe tests that can be used to detect unauthorized program modifications.

How has the U.S.government deployed computer-assisted audit techniques to reduce the budget?

Explain why the auditor's role in program development and acquisition should be limited.

a)What is test data processing? b)How is it done? c)What are the sources that an auditor can use to generate test data?

Audit tests and procedures traditionally have been performed on a sample basis.Do options exist for auditors to test significantly more (or all)transactions?

An auditor might use ________ to convert data from several sources into a single common format.

When programmers are working with program code,they often employ utilities that are also used in auditing.For example,as program code evolves,it is often the case that blocks of code are superseded by other blocks of code.Blocks of code that are not executed by the program can be identified by

What is the primary purpose of computer audit software?

When doing an information systems audit,auditors must review and evaluate the program development process.What errors or fraud could occur during the program development process?

An auditor creates a fictitious customer in the system and then creates several fictitious sales to the customer.The records are then tracked as they are processed by the system.The auditor is using

An auditor might use ________ to examining large data files.

An auditor sets an embedded audit module to flag questionable online transactions,display information about the transaction on the auditor's computer,and send a text message to the auditor's cell phone.The auditor is using

An auditor sets an embedded audit module to selectively monitor transactions.Selected transactions are then reprocessed independently,and the results are compared with those obtained by the normal system processing.The auditor is using

The use of a secure file library and restrictions on physical access to data files are control procedures used together to prevent

An auditor sets an embedded audit module to record all credit transactions in excess of $5,000 and stores the data in an audit log.The auditor is using