Question 1

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that are also used in auditing.For example,as program code evolves,it is often the case that blocks of code are superseded by other blocks of code.Blocks of code that are not executed by the program can be identified by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 2

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 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 (CAATs) software is specifically designed to convert data from different sources into a common format for analysis. Although some of the other options listed may have the capability to perform data conversion, they are not primarily designed for this purpose.

Question 4

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

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Question 5

Describe the disadvantages of test data processing.

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Question 6

Define and give examples of embedded audit modules.

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Question 7

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 auditors in retrieving and reviewing information. While some software may also help with error detection and rechecking calculations, its main role is to streamline the audit process by facilitating data collection and analysis.

Question 8

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 Computer-Assisted Audit Techniques (CAATS), which are audit software programs designed to perform certain audit functions based on auditor specifications. CAATS can automate the testing of large datasets, perform analytics and trend analysis, and monitor transactions and controls. A is incorrect because an input controls matrix is a tool used in the design and testing of internal controls over financial reporting. C is incorrect because embedded audit modules are software modules that are incorporated into a client's information system to record transactions and generate audit evidence. D is incorrect because a mapping program is a tool used in data analysis to identify relationships between data sets.

Question 9

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

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Question 10

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

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Question 11

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 programming routines that allow auditors to gain access to and monitor transactions within a system. The embedded audit module is using audit hooks to flag questionable transactions and provide information to the auditor through their computer and cell phone. The snapshot technique involves taking a snapshot of the data at a specific point in time, and is not relevant in this scenario. A system control audit review file (SCARF) is not mentioned and may not be necessary for this specific situation. Continuous and intermittent simulation involve testing a system with simulated transactions, which is not applicable in this scenario as the auditor is monitoring actual transactions.

Question 12

True or False: 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 replace the auditor's judgment, as it is a tool that is used to assist the auditor in performing specific tasks during an audit. The auditor's professional judgment is still required to evaluate the results provided by the software and make decisions based on the overall evidence gathered.

Question 13

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 14

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 that are processed by the system to test the system's controls and functionality. The other options, such as the snapshot technique, system control audit review file, and continuous and intermittent simulation, do not fully describe the method being used by the auditor.

Question 15

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

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Question 16

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?

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Question 17

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 to identify unused variables in program code. Program tracing is a technique used to identify errors or bugs in the program flow. Mapping programs are used to create a visual representation of the program flow. Embedded audit modules refer to code inserted into the program specifically for auditing purposes, not for identifying unused variables.

Question 18

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 19

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

Accepted Answer

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Question 20

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

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Quiz 11: Auditing Computer-Based Information Systems

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 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

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

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

Describe the disadvantages of test data processing.

Define and give examples of embedded audit modules.

What is the primary purpose of computer audit software?

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

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

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

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

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

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

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

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?

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

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?