Question 1

Reference to the operational policies manual indicate that all visitors to the production facility should produce photo identification and be signed in and out with the times noted.Observation indicates that guards often wave people through if they are accompanied by a known employee.This is an application of which of the following five internal audit scope standards?

Accepted Answer

The observation of guards waving people through without proper identification and sign-in/out procedures indicates a potential non-compliance with the policy on visitor management. Therefore, the situation falls under the scope of policy compliance verification, which is one of the internal audit scope standards.

Question 2

The use of a secure file library and restrictions on physical access to data files is a control procedure used in conjunction with

Accepted Answer

These control procedures are specifically related to safeguarding data files by ensuring they are secure and access is restricted.

Question 3

An increase in the effectiveness of internal controls will have the effect of

Accepted Answer

An increase in the effectiveness of internal controls will reduce control risk. Control risk is the risk of material misstatement occurring and not being prevented, detected or corrected by the entity's internal controls. Therefore, the better the internal controls, the lower the control risk.

Question 4

A sample of sales records is selected and each record is traced from the initial order record to product delivery and payment.Errors are noted.This is an application of which of the following five internal audit scope standards?

Accepted Answer

This internal audit scope standard focuses on ensuring the accuracy and reliability of the organization's operating and financial information. Tracing sales records from initial order to product delivery and payment and noting errors is an example of verifying the integrity of the organization's financial information.

Question 5

Auditors have several techniques available to them to test computer-processing controls.An audit routine that flags suspicious transactions is known as

Accepted Answer

An audit hook is a programmed routine in the computer system that identifies and flags suspicious transactions for further review by the auditor. SCARF is not a commonly used term in the auditing profession, and the snapshot technique is a method of sampling data at a specific point in time, rather than a technique for testing controls. The term "audit sinker" does not appear to be recognized or commonly used in the auditing profession.

Question 6

One function of CAS is to review data files to retrieve records meeting a specified criteria.What is this function called?

Accepted Answer

This function is called data selection, which involves filtering and retrieving specific records from a data file based on a given condition or criteria. CAS can efficiently perform this task by using advanced search algorithms and indexing techniques.

Question 7

Evaluating effectiveness,efficiency,and goal achievement are objectives of __________ audits.

Accepted Answer

Evaluating effectiveness, efficiency, and goal achievement are objectives of operational audits. Financial audits mainly focus on the accuracy of financial statements and information systems audits focus on the reliability of information systems. While these types of audits may also evaluate some aspects of effectiveness and efficiency, their primary focus is different from that of operational audits.

Question 8

The scope of a(n)__________ audit encompasses all aspects of information systems management.

Accepted Answer

The answer of The scope of a(n)__________ audit encompasses all...

Question 9

Physical examination of inventory reveals discrepancies with accounting records.This is an application of which of the following five internal audit scope standards?

Accepted Answer

The physical examination of inventory reveals discrepancies with accounting records, indicating a need for asset security verification, which overlaps with the internal audit scope standard of verifying the safeguarding of assets.

Question 10

When the auditor wants to read data in different formats and convert it into a single common format,the __________ function of a generalized audit software package is used.

Accepted Answer

The function used in this scenario is reformatting, which allows the auditor to read data in different formats and convert it into a single common format. Therefore, the correct choice is B - reformatting.

Question 11

In the __________ stage of an operational audit,the auditor measures the actual system against an ideal standard.

Accepted Answer

In the evidence evaluation stage, the auditor compares the actual system to an ideal standard or benchmark to determine the effectiveness and efficiency of the system. This stage involves analyzing the evidence collected in the previous stage and drawing conclusions about the system's performance.

Question 12

One way to document the review of source data controls is to use

Accepted Answer

An input control matrix is a tool used to document the review of source data controls. It lists the different types of data input controls that are in place, the purpose of each control, the location of the control, and who is responsible for the control. This matrix helps to ensure that all necessary controls are in place and functioning correctly. Flowchart generator programs and mapping programs are used for different purposes such as documenting processes and systems, and a program algorithm matrix would not be relevant for documenting source data controls.

Question 13

To document the review of source data controls,an auditor may use

Accepted Answer

An input control matrix is used by auditors to document the review of source data controls. It details the control considerations for each input data field and helps the auditor to assess if the controls are operating effectively. Test data processing, computer audit software, and analysis of program logic are all useful tools in the audit process, but they may not be specifically relevant for documenting the review of source data controls.

Question 14

Comparison of budgets and operating objectives with performance reveals material discrepancies.This is an application of which of the following five internal audit scope standards?

Accepted Answer

This is related to ensuring the integrity of operating and financial information, as discrepancies between budgets and actual performance indicate potential issues in the accuracy or reliability of financial data.

Question 15

The auditor uses __________ to continuously monitor the system and collect audit evidence while live data are processed.

Accepted Answer

Concurrent audit techniques involve the auditor monitoring the system in real-time while live data is being processed. This allows the auditor to collect audit evidence continuously and identify any issues as they occur, rather than retroactively. Test data processing involves using pre-determined test data to run through the system and identify any errors, but it does not involve monitoring in real-time. Parallel simulation involves running the system on a separate system and comparing the output to the live system, but it is not a real-time monitoring technique. Analysis of program logic involves reviewing the code and logic of the system to identify potential errors, but it also does not involve real-time monitoring.

Question 16

The __________ procedure for auditing computer process controls uses a hypothetical series of valid and invalid transactions.

Accepted Answer

The test data processing procedure for auditing computer process controls involves using a set of valid and invalid test transactions to assess the effectiveness of the system's controls. This is done without affecting real data or operations. The other options (concurrent audit techniques, integrated test facility, and dual process) do not necessarily involve the use of test transactions in this way.

Question 17

The auditor has various software programs available to help in the audit effort.A program that,based on auditor specifications,generates programs that perform certain audit functions is referred to a(n)

Accepted Answer

CAS (Computer-Assisted Audit Software) is designed to help auditors perform specific audit tasks based on their specifications.

Question 18

Interviews with operations employees indicate that delays in the delivery of components often result in "slack time" during which production stops and employees are idle.This is an application of which of the following five internal audit scope standards?

Accepted Answer

The situation described in the scenario relates to the efficient use of resources, specifically the utilization of labor. Therefore, the applicable internal audit scope standard is resource use efficiency.

Question 19

When it is suspected that a particular application program contains unauthorized code or serious errors,a detailed analysis of the program logic may be necessary.The auditor has several types of software packages available to help in analyzing program logic.A program which identifies unexecuted program code is

Accepted Answer

A mapping program is used to identify unexecuted program code by mapping out which parts of the code are executed during a run, helping to detect dead code or logic errors.

Question 20

What is the primary purpose of computer audit software?

Accepted Answer

The primary purpose of computer audit software is to assist the auditor in reviewing and retrieving information in computer files. It does not free the auditor from the attest phase of the audit nor does it specifically look for unauthorized modifications and changes to system program code. However, it can assist in reviewing and retrieving information in accounting records and systems documentation as well.

Quiz 9: Auditing Computer-Based Informtion Systems