Question 1

A control designed to validate a transaction at the point of
data entry is a. recalculation of

a record count.

a check digit.

checkpoints.

recalculation of hash total.

Question 2

Which of the following statements is true?

The black box approach to testing application controls is
essentially auditing around the computer.

The white box approach audits through the computer and tests
the application logic directly.

Both are true.

Both are false.

Question 3

In an automated payroll processing environment, a department
manager substituted the time card for a terminated employee with a time card
for a fictitious employee. The fictitious employee had the same pay rate and
hours worked as the terminated employee. The best control technique to detect
this action using employee identification numbers would be a record count.

True

False

Question 4

Users need to be actively involved in the system development
process.

True

False

Question 5

An electronic walk- through of the application’s internal
logic is called

a salami logic test.

an integrated test.

tracing.

a logic bomb test.

Question 6

SOX legislation calls for sound internal control practices
over financial reporting and requires SEC- registered corporations to maintain
systems of internal control that meet SOX standards. An integral part of internal
control is the appropriate use of preventive controls. Which of the following
is not an essential element of preventive control?

separation of responsibilities for the recording, custodial,
and authorization functions

sound personnel practices

documentation of policies and procedures

implementation of state of the art software and hardware

physical protection of assets

Question 7

In regard to Generalized Audit Software (GAS) which of the
following is false?

Generalized Audit Software is an off-the-shelf package that
can provide a means to gain access to and interrogate data maintained on
computer storage media.

Generalized Audit Software is utilized by auditors to obtain
evidence directly on the quality of the records produced and maintained by
application systems.

ACL and IDEA are two widely used Generalized Audit Software
products.

Generalized audit software is the client’s software that is
borrowed by the auditor.

Question 8

Input controls should test validity, accuracy and
completeness.

True

False

Question 9

When using the test data method:

Involves an audit module designed into the application with
dummy or test records integrated among legitimate records.

Performs an electronic walk through of the application’s
internal logic.

Involves an audit module designed into the application with
dummy or test records integrated among legitimate records.

Creating a program that does what the application program
does. Transactions are reprocessed and
the parallel simulation results are compared to the actual application results.

Involves a module embedded into the application program that
selects transactions for further testing.

Question 10

An employee in the receiving department keyed in a shipment
from a remote terminal and inadvertently omitted the purchase order number. The
best systems control to detect this error would be a reasonableness test.

True

False

Question 11

In regard to program changes which of the following is
false?

Normally there is no audit trail for program changes.

All program changes should be supported by a change
authorization in the program permanent file.

The program maintenance change authorization should be
approved by both the computer services management and the user department
management.

Every program change should be thoroughly tested before
being implemented.