Chapter 8 Auditing Multiple Choice

Front 1

LAN is the abreviation for:

1. Large area network
2. Local Area Network
3. Longitudinal Analogue network
4. Low analytical nets

Back 1

2. Local Area Network

Front 2

End uer computing is most likely to occur on which of the following types of computers?

1. Mainframe
2. Decision support systems.
3. Personal computers
4. Personal reference assistants

Back 2

3. Personal computers

Front 3

When erroneous date are detected by computer program controlls. data may be excluded from processing and printed on an exception report. The exception report should probably be reviewed and followed up by the:

1. Data Control Group.
2. system analyst.
3. Supervisor of IT operations
4. Computer programmer

Back 3

1. Data Control Group.

Front 4

AN accounts payable program posted a payable vendor not included in the online vendor master file. A control which would prevent this error is a:

1. Validity Check
2. Range Check
3. Limit Test
4. Control total.

Back 4

1. Validity Check

Front 5

When an online real-time (OLRT) IT processing system is in use, internal control can be strengthened by:

1. Providing for the separation of duties between data input and error handling operations.
2. Attatching plastic fild protection rings to reels of magnetic tape before new data can be entered on the file.
3. Making a validity heck of an indentification number before a user can obtain access to the computer files.
4. Preparing batch totals to provide assurance that file updates are made for the entire input.

Back 5

3. Making a validity heck of an indentification number before a user can obtain access to the computer files.

Front 6

The auditors would be most likely concerned with which of the following controls in a distributed data processing system?

1. Hardware controls
2. Systems documentation contorls
3. Access controls
4. Disaster recovery controls.

Back 6

3. Access controls

Front 7

The auditors would be least likely to use software to:

1. Access client data files
2. Prepare spreadsheets
3. Assess computer control risk
4. Contstruct parallel simulations

Back 7

3. Assess computer control risk

Front 8

Auditors often make use of computer programs that perform routine processing functions such as sorting and merging. These programs are made available by IT comnpanies and other are referred to as:

1. Compiler programs
2. Utility programs
3. User programs
4. Supervisory programs

Back 8

2. Utility programs

Front 9

Which of the following is least likely to be considered by the auditors considering engagement of an informaion technology specialist on an audit?

1. Complexity of the client's systems and IT controls.
2. Number of financial institutions at which the client has accounts
3. Client's use of emerging technologies
4. Extent of the client's participation in electronic commerce.

Back 9

2. Number of financial institutions at which the client has accounts

Front 10

Which of the following is an advantage of generalized auit software packages?

1. They are all written in one identical computer language.
2. They can be used for audits of clients that use differing computer equipment and file formats.
3. They have reduced the need for the auditor to study input controls for computer related procedures.
4. Their use can be substituted for a relatively large part of the rewuired test of controls.

Back 10

2. They can be used for audits of clients that use differing computer equipment and file formats.

Front 11

The increased presence of user operated computers in the workplace has resulted in an increasing number of persons having access to the system, A control that is often used to prevent unauthorized access to sensitive programs is:

1.Backup copies of date on disckettes.
2. User identification passwords.
3. Input validation checks.
4. Record counts of the number of input transations in a batch being processed.

Back 11

2. User identification passwords.

Front 12

An auditor will use the computer test date method in order to gain assurance with respect to the:

1. Security of date in a system
2. IT system capacity
3. Controls contained within a program
4. Degree of data entry accuracy for batchh input data.

Back 12

3. Controls contained within a program