Question 1

All of the following are reasons why SOX was enacted, except:

Accepted Answer

A)  Enron's CEO, Jeffrey Skilling, claimed he did not know about the company's financial shenanigans because he was not involved in their accounting
B)  Public perception was that auditors were having conflicts of interest with respect to the auditing and consulting services they provided
C)  The FASB has long been thought to be ineffective
D)  Congress wanted to restore investor confidence in the wake of a rash of corporate scandals

Question 2

Computer assisted audit techniques are used primarily when auditing around the computer.

Accepted Answer

A) True 
 B)False

Question 3

Prewritten computer programs used for audit purposes are called:

Accepted Answer

A)  Sequential access program systems
B)  Positive confirmation audit systems
C)  Embedded audit modules
D)  Generalized auditing packages

Question 4

Controls over access to IT systems are particularly important because:

Accepted Answer

A)  Weak access controls prevent unauthorized use of systems
B)  Access controls allow auditors to employ continuous auditing techniques
C)  Access controls make test data more effective
D)  Weak access controls can allow users to bypass many other controls

Question 5

Many of the assurance services auditors offer today involve information technology.

Accepted Answer

A) True 
 B)False

Question 6

A computerized AIS is harder to audit than a manual system for all of the following reasons except:

Accepted Answer

A)  The file information is not human readable
B)  The volume of transaction records and master file records is usually much larger in computerized systems than in manual systems
C)  An audit trail does not exist in a computerized AIS
D)  Computerized systems often use remote real-time data processing, thus complicating the tracing of transaction records to their sources

Question 7

The impetus for IT auditing can be traced to the adoption of computerized accounting systems, migration of business processes to computerized platforms, and enforcement of data security.

Accepted Answer

A) True 
 B)False

Question 8

SAS No.99 - Consideration of Fraud in a Financial Statement Audit guides auditors in being more proactive in detecting fraud than did the predecessor standard, SAS No.82.

Accepted Answer

A) True 
 B)False

Question 9

Information Technology governance includes all of the following except:

Accepted Answer

A)  A decentralized approach to IT acquisition
B)  Using IT strategically to carry out the objectives of an organization
C)  Ensuring effective management of an organization's IT resources
D)  Control over IT-related risks

Question 10

One purpose of generalized auditing packages is to enable an auditor to examine the contents of computer files of interest without having to write a computer program himself/herself.
Renumber all questions below and adjust solutions accordingly

Accepted Answer

A) True 
 B)False

Question 11

The scope of an internal audit function includes all of the following except:

Accepted Answer

A)  efficiency and effectiveness of operations
B)  compliance with laws and regulations
C)  reliability of internal and external reporting
D)  managing day to day operations of business units

Question 12

Which section of SOX requires CEOs and CFOs to "sign off" on their company's financial statements?

Accepted Answer

A)  Section 404
B)  Section 201
C)  Section 103
D)  Section 302

Question 13

?Renumber all questions below and adjust solutions accordingly
An information systems risk assessment is as concerned with errors and accidents as it is with fraud.
Renumber all questions below and adjust solutions accordingly

Accepted Answer

A) True 
 B)False

Question 14

An auditing around the computer approach pays little or no attention to the control procedures within an IT environment.

Accepted Answer

A) True 
 B)False

Question 15

It is relatively easy to prevent hackers from unauthorized access to data and programs.

Accepted Answer

A) True 
 B)False

Question 16

If an auditor were to audit a payroll application using around-the-computer auditing techniques, the individual would:

Accepted Answer

A)  Use test data
B)  Verify that the output from the computerized processing was correct for the input data used to generate it
C)  Never use a surprise audit because of the amount of time and work involved
D)  Prepare a profile of a computer file and check the processed data with the profile thus obtained

Question 17

An integrated test facility is used to:

Accepted Answer

A)  Test only the computer programs of an AIS
B)  Test only the manual operations of an AIS
C)  Test both the programs and the manual operations of an AIS in an operational setting
D)  Test the computer programs, the manual operations, and the auditing procedures of a company using a computerized AIS

Question 18

Through-the-computer auditing uses all of the following except:

Accepted Answer

A)  Confirmation sampling
B)  Test data
C)  Tests of program authorization
D)  Embedded audit modules

Question 19

Three common techniques auditors use to test computer programs are:

Accepted Answer

A)  Test data, integrated test facilities, and parallel simulation
B)  Test data, edit checks, and integrated test facilities
C)  Test data, program change control, and parallel simulation
D)  Program change control, edit checks, and parallel simulation

Question 20

The CISSP is the most widely recognized and respected certification for IT auditors.

Accepted Answer

A) True 
 B)False

Exam 11: Information Technology Auditing

Three common techniques auditors use to test computer programs are:

Correct AnswerverifiedShow Answer

All of the following are reasons why SOX was enacted, except:

Correct AnswerverifiedShow Answer

Information Technology governance includes all of the following except:

Correct AnswerverifiedShow Answer

An auditing around the computer approach pays little or no attention to the control procedures within an IT environment.

Correct AnswerverifiedShow Answer

Which section of SOX requires CEOs and CFOs to "sign off" on their company's financial statements?

Correct AnswerverifiedShow Answer

One purpose of generalized auditing packages is to enable an auditor to examine the contents of computer files of interest without having to write a computer program himself/herself. Renumber all questions below and adjust solutions accordingly

Correct AnswerverifiedShow Answer

The impetus for IT auditing can be traced to the adoption of computerized accounting systems, migration of business processes to computerized platforms, and enforcement of data security.

Correct AnswerverifiedShow Answer

Through-the-computer auditing uses all of the following except:

Correct AnswerverifiedShow Answer

It is relatively easy to prevent hackers from unauthorized access to data and programs.

Correct AnswerverifiedShow Answer

Controls over access to IT systems are particularly important because:

Correct AnswerverifiedShow Answer

A computerized AIS is harder to audit than a manual system for all of the following reasons except:

Correct AnswerverifiedShow Answer

Prewritten computer programs used for audit purposes are called:

Correct AnswerverifiedShow Answer

SAS No.99 - Consideration of Fraud in a Financial Statement Audit guides auditors in being more proactive in detecting fraud than did the predecessor standard, SAS No.82.

Correct AnswerverifiedShow Answer

The scope of an internal audit function includes all of the following except:

Correct AnswerverifiedShow Answer

If an auditor were to audit a payroll application using around-the-computer auditing techniques, the individual would:

Correct AnswerverifiedShow Answer

Computer assisted audit techniques are used primarily when auditing around the computer.

Correct AnswerverifiedShow Answer

?Renumber all questions below and adjust solutions accordingly An information systems risk assessment is as concerned with errors and accidents as it is with fraud. Renumber all questions below and adjust solutions accordingly

Correct AnswerverifiedShow Answer

The CISSP is the most widely recognized and respected certification for IT auditors.

Correct AnswerverifiedShow Answer

Many of the assurance services auditors offer today involve information technology.

Correct AnswerverifiedShow Answer

An integrated test facility is used to:

Correct AnswerverifiedShow Answer

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