Question 1

Define and give examples of embedded audit modules.

Accepted Answer

The answer of Define and give examples of embedded audit...

Question 2

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 testing method that involves creating fictitious transactions in the live system to test system controls without affecting real data.

Question 3

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) are specialized programs that an auditor can use to extract and analyze data from various sources. These programs can also be used to convert the data into a single common format for ease of analysis. The other options listed are not typically used for data conversion in auditing.

Question 4

One of the advantages of CAATS software is that it can replace the auditor's judgment in specific areas of an audit.

Accepted Answer

CAATS software cannot fully replace the auditor's judgment as it only assists with data analysis and testing. The auditor's expertise and insight are still crucial for making informed decisions and interpretations of the results obtained from the software.

Question 5

What is the primary purpose of computer audit software?
A) eliminate auditor judgment errors
B) assist the auditor in retrieving and reviewing information
C) detect unauthorized modifications to system program code
D) 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. While it may also help eliminate auditor judgment errors and detect unauthorized modifications, its main function is to aid in the auditing process. Although rechecking calculations and cross-footing are important tasks for audit software, they are not the primary purpose of the software.

Question 6

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 scenario describes the use of audit hooks, which are programming codes used to capture specified transactions and activities in a system. They are able to flag questionable transactions, display information about them on a computer, and send notifications to the auditor via text message. The other options (A, B, and D) do not accurately describe the situation presented in the scenario.

Question 7

Identify the company below that CAATS would likely provide the most value.
A) a local car dealership
B) a mom and pop grocery store
C) a large lumber mill that uses an ERP system
D) a medium-sized shoe retailer with outlets in many cities

Accepted Answer

The answer of Identify the company below that CAATS would...

Question 8

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 9

How has the U.S.government deployed computer-assisted audit techniques to reduce the budget?
A) to identify fraudulent Medicare claims
B) to perform random audits of government spending
C) to replace human auditors with computerized auditors
D) to develop a more balanced government budget

Accepted Answer

Computer-assisted audit techniques have been used by the U.S. government to identify fraudulent Medicare claims, helping to reduce unnecessary spending and improve budget efficiency.

Question 10

An auditor sets an embedded audit module to flag all credit transactions in excess of $3,000.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 use of an embedded audit module to record system state before and after each transaction is processed is known as the snapshot technique. This technique captures a point in time view of the system's processing and can be used for testing, monitoring, or auditing purposes.

Question 11

An auditor sets an embedded audit module to record all credit transactions in excess of $4,000 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 to collect data on transactions that meet certain criteria, such as credit transactions over $4,000, and store them in an audit log for review.

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

The answer of When programmers are working with program code,they...

Question 13

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 stands for Computer-Assisted Audit Techniques, which refers to the use of specialized audit software programs to perform certain audit functions. These programs can be generated based on auditor specifications and can help automate and streamline audit procedures. Therefore, option B is the correct choice. Input controls matrix, embedded audit module, and mapping program are not specific types of audit software programs that generate programs based on auditor specifications.

Question 14

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 15

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 16

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

Accepted Answer

The answer of Explain why the auditor's role in program...

Question 17

Describe the disadvantages of test data processing.

Accepted Answer

The answer of Describe the disadvantages of test data processing....

Question 18

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

Accepted Answer

The answer of Briefly describe tests that can be used...

Question 19

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 commonly used by programmers to locate unnecessary variables or other potential problems in program code. Program tracing and mapping programs may also be used in auditing, but they are not specifically designed for identifying unused variables or other code elements. Embedded audit modules are typically used for more specific auditing purposes, such as tracking user activity or detecting fraud.

Question 20

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

The answer of Audit tests and procedures traditionally have been...

Quiz 11: Auditing Computer-Based Information Systems

Define and give examples of embedded audit modules.

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 convert data from several sources into a single common format.

One of the advantages of CAATS software is that it can replace the auditor's judgment in specific areas of an audit.

What is the primary purpose of computer audit software?

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

Identify the company below that CAATS would likely provide the most value.

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

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

An auditor sets an embedded audit module to flag all credit transactions in excess of $3,000.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 record all credit transactions in excess of $4,000 and stores the data in an audit log.The auditor is using

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

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