Question 1

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

Accepted Answer

IDEA (Interactive Data Extraction and Analysis) is a software program specifically designed for auditors to analyze large data sets. It has advanced data analysis capabilities and can quickly identify anomalies and exceptions in the data. Excel and Access can also work with large data sets, but they are not specifically designed for auditing purposes. SQL is a database management system and would not be the best choice for examining large data files on its own.

Question 2

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 3

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 special programming commands that identify and trigger actions when certain events occur within a system. In this case, the audit hook is set up 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 other options (snapshot technique, system control audit review file, and continuous and intermittent simulation) do not accurately describe the actions the auditor is taking in this scenario.

Question 4

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

CAATS (Computer-Assisted Audit Techniques) is a type of audit software that generates programs to perform audit functions based on auditor specifications. The software can be used to analyze and test financial data, transactions, and accounts. It can also help auditors identify patterns, anomalies, and errors in large volumes of data. The other options are not specific to audit software programs.

Question 5

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

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Question 6

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

Accepted Answer

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Question 7

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

The utility used in this scenario is scanning routines, which can be used to identify unused variables in program code. Program tracing is a technique used to trace the flow of execution in a program, mapping programs are used to create visual representations of program structures, and embedded audit modules are specialized code inserted into programs to monitor and audit their behavior.

Question 8

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

The use of a secure file library and restrictions on physical access to data files are control procedures that are implemented to prevent unauthorized access to sensitive information. These procedures are designed to ensure that only authorized personnel have access to confidential or proprietary data, thereby reducing the risk of data breaches or theft. This control is particularly important for protecting the data of key clients or customers, as it ensures that their sensitive information is kept secure and confidential.

Question 9

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 10

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

Accepted Answer

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Question 11

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 involves creating fictitious transactions to test the system's processing capabilities without affecting real data. This allows the auditor to identify any system weaknesses or errors before they have a significant impact on real transactions.

Question 12

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

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Question 13

Describe the disadvantages of test data processing.

Accepted Answer

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Question 14

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 15

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 16

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. This may include identifying risks, assessing controls, testing transactions, and analyzing data. While the other options may also be features of audit software, they are not the primary purpose.

Question 17

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

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Question 18

Define and give examples of embedded audit modules.

Accepted Answer

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Question 19

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) is designed to handle large volumes of data and can help automate the process of importing, converting, and analyzing data from multiple sources into a single common format. This can save time and reduce errors in the audit process. The other options listed are not specifically designed for this purpose.

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 auditor might use ________ to examining large data files.

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

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

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

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

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

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

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

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

Describe the disadvantages of test data processing.

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

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

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?

Define and give examples of embedded audit modules.

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

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