Question 1

Auditors may send text messages through a company's system to find out whether encryption of private information is occurring properly.In addition, special software programs are available to help auditors identify weak points in a company's security measures.These are examples of:
A)Penetration tests
B)Authenticity tests
C)Vulnerability assessments
D)Access log reviews

Accepted Answer

Vulnerability assessments

Question 2

This piece of audit evidence is often considered to be the most important because it is a signed acknowledgment of management's responsibility for the fair presentation of the financial statements and a declaration that they have provided complete and accurate information to the auditors during all phases of the audit.
A)Letter of Representation
B)Audit Report
C)Encounter Statement
D)Auditors Contract

Accepted Answer

Letter of Representation

Question 3

Controls meant to prevent the destruction of information as the result of unauthorized access to the IT system are referred to as:
A)IT administration
B)System controls
C)Information administration
D)Security controls

Accepted Answer

Security controls

Question 4

This type of processing control test involves a comparison of different items that are expected to have the same values, such as comparing two batches or comparing actual data against a predetermined control total.
A)Validation Checks
B)Batch Totals
C)Run-to-Run Totals
D)Balancing Tests

Accepted Answer

Balancing Tests

Question 5

In addition to testing system documentation, auditors should test the three main functions of computer applications.Which of the following is not one of these functions?
A)Output
B)Input
C)Processing
D)Data Storage

Accepted Answer

Data Storage

Question 6

These tests of security controls analyze a company's control environment for possible weaknesses.Special software programs are available to help auditors identify weak points in their company's security measures.
A)Authenticity tests
B)Penetration tests
C)Vulnerability assessments
D)IT systems documentation

Accepted Answer

Vulnerability assessments

Question 7

This phase of auditing occurs when the auditors evaluate all the evidence that has been accumulated and makes a conclusion based on that evidence.
A)Tests of Controls
B)Audit Planning
C)Audit Completion / Reporting
D)Substantive Testing

Accepted Answer

Audit Completion / Reporting

Question 8

One of the most effective ways a client can protect its computer system is to place physical controls in the computer center.Physical controls include all of the following, except:
A)Proper temperature control
B)Locks
C)Security guards
D)Cameras

Accepted Answer

Proper temperature control

Question 9

This type of application control is performed to verify the correctness of information entered into software programs.Auditors are concerned about whether errors are being prevented and detected during this stage of data processing.
A)Security controls
B)Processing controls
C)Input controls
D)Output controls

Accepted Answer

Input controls

Question 10

Auditors should perform this type of test to determine the valid use of the company's computer system, according to the authority tables.
A)Authenticity tests
B)Penetration tests
C)Vulnerability assessments
D)IT systems documentation

Accepted Answer

Authenticity tests

Question 11

This is one of the computer-assisted audit techniques related to processing controls that involves processing company data through a controlled program designed to resemble the company's application.This test is run to find out whether the same results are achieved under different systems.
A)Integrated Test Facility
B)Embedded Audit Module
C)Parallel Simulation
D)Test Data Method

Accepted Answer

Parallel Simulation

Question 12

These tests of the security controls involve various methods of entering the company's system to determine whether controls are working as intended.
A)Authenticity tests
B)Penetration tests
C)Vulnerability assessments
D)IT systems documentation

Accepted Answer

Penetration tests

Question 13

A process of constant evidence gathering and analysis to provide assurance on the information as soon as it occurs, or shortly thereafter, is referred to as:
A)Real-time auditing
B)Virtual auditing
C)E-auditing
D)Continuous auditing

Accepted Answer

Continuous auditing

Question 14

One of the most effective ways a client can protect its computer system is to place environmental controls in the computer center.Environmental controls include:
A)Card keys
B)Emergency power supply
C)Alarms
D)Security guards

Accepted Answer

Emergency power supply

Question 15

This law, also known as the first-digit law, was named after a physicist who discovered a specific, but non-uniform pattern in the frequency of digits occurring as the first number in a list of numbers:
A)Number-up Law
B)Benford's Law
C)Adams' Digit Law
D)Jackson First Digit Law

Accepted Answer

Benford's Law

Question 16

All of the following are examples of security controls except for?
A)Biometric access controls
B)Swipe Key access controls
C)Online firewall protection controls
D)All of the Above are examples of security controls

Accepted Answer

All of the Above are examples of security controls

Question 17

The auditor's test of the accuracy of monetary amounts of transactions and account balances is known as:
A)Testing of controls
B)Substantive tests
C)Compliance tests
D)Application tests

Accepted Answer

Substantive tests

Question 18

IT audit procedures typically include a combination of data accuracy tests where the data processed by computer applications are reviewed for correct dollar amounts or other numerical values.These procedures are referred to as:
A)Security controls
B)Processing controls
C)Input controls
D)Output controls

Accepted Answer

Processing controls

Question 19

Regardless of whether the results are printed or retained electronically, auditors may perform all of the following procedures to test application outputs, except:
A)Integrated Tests
B)Reasonableness Tests
C)Audit Trail Tests
D)Rounding Errors Tests

Accepted Answer

Integrated Tests

Question 20

Related audit tests to review the existence and communication of company policies regarding important aspects of IT administrative control include all of the following, except:
A)Personal accountability and segregation of incompatible responsibilities
B)Job description and clear lines of authority
C)Prevention of unauthorized access
D)IT systems documentation

Accepted Answer

Prevention of unauthorized access

Quiz 7: Auditing Information Technology Bases Processes

Auditors may send text messages through a company's system to find out whether encryption of private information is occurring properly.In addition, special software programs are available to help auditors identify weak points in a company's security measures.These are examples of:

Controls meant to prevent the destruction of information as the result of unauthorized access to the IT system are referred to as:

This type of processing control test involves a comparison of different items that are expected to have the same values, such as comparing two batches or comparing actual data against a predetermined control total.

In addition to testing system documentation, auditors should test the three main functions of computer applications.Which of the following is not one of these functions?

These tests of security controls analyze a company's control environment for possible weaknesses.Special software programs are available to help auditors identify weak points in their company's security measures.

This phase of auditing occurs when the auditors evaluate all the evidence that has been accumulated and makes a conclusion based on that evidence.

One of the most effective ways a client can protect its computer system is to place physical controls in the computer center.Physical controls include all of the following, except:

This type of application control is performed to verify the correctness of information entered into software programs.Auditors are concerned about whether errors are being prevented and detected during this stage of data processing.

Auditors should perform this type of test to determine the valid use of the company's computer system, according to the authority tables.

This is one of the computer-assisted audit techniques related to processing controls that involves processing company data through a controlled program designed to resemble the company's application.This test is run to find out whether the same results are achieved under different systems.

These tests of the security controls involve various methods of entering the company's system to determine whether controls are working as intended.

A process of constant evidence gathering and analysis to provide assurance on the information as soon as it occurs, or shortly thereafter, is referred to as:

One of the most effective ways a client can protect its computer system is to place environmental controls in the computer center.Environmental controls include:

This law, also known as the first-digit law, was named after a physicist who discovered a specific, but non-uniform pattern in the frequency of digits occurring as the first number in a list of numbers:

All of the following are examples of security controls except for?

The auditor's test of the accuracy of monetary amounts of transactions and account balances is known as:

IT audit procedures typically include a combination of data accuracy tests where the data processed by computer applications are reviewed for correct dollar amounts or other numerical values.These procedures are referred to as:

Regardless of whether the results are printed or retained electronically, auditors may perform all of the following procedures to test application outputs, except:

Related audit tests to review the existence and communication of company policies regarding important aspects of IT administrative control include all of the following, except: