AUE2601 UPDATED ACTUAL QUESTIONS
AND CORRECT ANSWERS
COMPREHENSIVE STUDY GUIDE
●● "User authentication"
Answer: typically attempts to identify a user through unique
logon identifications, passwords, access cards or biometric data.
●● "User authorization"
Answer: consists of access rules to determine the computer resources
each user may access.
●● Procedures are designed to prevent or detect
Answer: (a) Unauthorized access to on-line terminal devices, programs
and data;
(b) Entry of unauthorized transactions;
(c) Unauthorized changes to data files;
(d) The use of computer programs by unauthorized personnel
,(e) The use of computer programs that have not been authorized.
●● Accounting estimate
Answer: approximation of the amount of an
item in the absence of a precise means of measurement.
●● Accounting system
Answer: series of tasks and records of an entity
by which transactions are processed as a means of maintaining financial
records. Such
systems identify, assemble, analyze, calculate, classify, record,
summarize and report
transactions and other events
●● Agreed-upon procedures engagement
Answer: auditor is engaged to carry out those procedures of an audit
nature to
which the auditor and the entity and any appropriate third parties have
agreed and to
report on factual findings.
●● Analytical procedures
Answer: consist of the analysis of significant ratios
, and trends including the resulting investigation of fluctuations and
relationships that are
inconsistent with other relevant information or deviate from predictable
amounts
●● Annual report
Answer: entity ordinarily issues on an annual basis a document which
includes
its financial statements together with the audit report thereon.
●● Application controls in computer information systems
Answer: to establish specific control procedures over the accounting
applications in
order to provide reasonable assurance that all transactions are authorized
and recorded,
and are processed completely, accurately and on a timely basis
●● Appropriateness
Answer: measure of the quality of audit evidence
●● Assertions
Answer: representations by management, explicit or otherwise, that are
embodied in the financial statements.
AND CORRECT ANSWERS
COMPREHENSIVE STUDY GUIDE
●● "User authentication"
Answer: typically attempts to identify a user through unique
logon identifications, passwords, access cards or biometric data.
●● "User authorization"
Answer: consists of access rules to determine the computer resources
each user may access.
●● Procedures are designed to prevent or detect
Answer: (a) Unauthorized access to on-line terminal devices, programs
and data;
(b) Entry of unauthorized transactions;
(c) Unauthorized changes to data files;
(d) The use of computer programs by unauthorized personnel
,(e) The use of computer programs that have not been authorized.
●● Accounting estimate
Answer: approximation of the amount of an
item in the absence of a precise means of measurement.
●● Accounting system
Answer: series of tasks and records of an entity
by which transactions are processed as a means of maintaining financial
records. Such
systems identify, assemble, analyze, calculate, classify, record,
summarize and report
transactions and other events
●● Agreed-upon procedures engagement
Answer: auditor is engaged to carry out those procedures of an audit
nature to
which the auditor and the entity and any appropriate third parties have
agreed and to
report on factual findings.
●● Analytical procedures
Answer: consist of the analysis of significant ratios
, and trends including the resulting investigation of fluctuations and
relationships that are
inconsistent with other relevant information or deviate from predictable
amounts
●● Annual report
Answer: entity ordinarily issues on an annual basis a document which
includes
its financial statements together with the audit report thereon.
●● Application controls in computer information systems
Answer: to establish specific control procedures over the accounting
applications in
order to provide reasonable assurance that all transactions are authorized
and recorded,
and are processed completely, accurately and on a timely basis
●● Appropriateness
Answer: measure of the quality of audit evidence
●● Assertions
Answer: representations by management, explicit or otherwise, that are
embodied in the financial statements.
