Chapter H GRADE A Q&A
In a computerized processing system, hardware controls are designed to
1) Arrange data in a logical sequential manner for processing purposes.
2) Correct errors in the computer programs.
3) Monitor and detect errors in source documents.
4) Detect and control errors arising from use of equipment. - (correct answer)4) Detect
and control errors arising from use of equipment.
An example of a program in which the audit team would be most interested in testing
automated application controls is a(n)
1) Utility program.
2) Payroll processing program.
3) Operating system program.
4) Data management system software. - (correct answer)2) Payroll processing program.
Which of the following would reduce the effectiveness of internal control in a
computerized processing system?
1) Computer operators have access to operator instructions and detailed program lists.
2) The computer librarian maintains custody of computer program instructions and
detailed lists.
3) Computer programmers write and debug programs that perform routines designed by
the systems analyst.
4) The control group is solely responsible for the distribution of all computer output. -
(correct answer)1) Computer operators have access to operator instructions and
detailed program lists.
Which of the following is true with respect to fraud risk factors in a computerized
environment?
1) Higher dollar amounts are involved in a computerized environment.
2) Employees in a computerized environment are highly skilled.
, 3) Employees have increased access to information systems and computer resources in
a computerized environment.
4) Audit teams cannot evaluate the computerized processing system during the year. -
(correct answer)3) Employees have increased access to information systems and
computer resources in a computerized environment.
Controls used in the management of a computer center to minimize the possibility of
using an incorrect file or program are
1) External labels.
2) Limit checks.
3) Control totals.
4) Record counts. - (correct answer)1) External labels.
Audit teams would most likely use computer-assisted audit techniques to
1) Construct a parallel simulation to test the client's computer controls.
2) Perform tests of a client's hardware controls.
3) Make copies of client data files for controlled reprocessing.
4) Test the operative effectiveness of a client's password access control. - (correct
answer)1) Construct a parallel simulation to test the client's computer controls
Which of the following computerized processing systems generally can be audited
without examining or directly testing the computer programs of the system?
1) A system that affects a number of master files and produces limited output.
2) A system that performs relatively complicated processing and produces very little
detailed output.
3) A system that updates a few master files and produces no other printed output than
final balances.
4) A system that performs relatively uncomplicated processes and produces detailed
output. - (correct answer)4) A system that performs relatively uncomplicated processes
and produces detailed output.
In a computerized processing system, hardware controls are designed to
1) Arrange data in a logical sequential manner for processing purposes.
2) Correct errors in the computer programs.
3) Monitor and detect errors in source documents.
4) Detect and control errors arising from use of equipment. - (correct answer)4) Detect
and control errors arising from use of equipment.
An example of a program in which the audit team would be most interested in testing
automated application controls is a(n)
1) Utility program.
2) Payroll processing program.
3) Operating system program.
4) Data management system software. - (correct answer)2) Payroll processing program.
Which of the following would reduce the effectiveness of internal control in a
computerized processing system?
1) Computer operators have access to operator instructions and detailed program lists.
2) The computer librarian maintains custody of computer program instructions and
detailed lists.
3) Computer programmers write and debug programs that perform routines designed by
the systems analyst.
4) The control group is solely responsible for the distribution of all computer output. -
(correct answer)1) Computer operators have access to operator instructions and
detailed program lists.
Which of the following is true with respect to fraud risk factors in a computerized
environment?
1) Higher dollar amounts are involved in a computerized environment.
2) Employees in a computerized environment are highly skilled.
, 3) Employees have increased access to information systems and computer resources in
a computerized environment.
4) Audit teams cannot evaluate the computerized processing system during the year. -
(correct answer)3) Employees have increased access to information systems and
computer resources in a computerized environment.
Controls used in the management of a computer center to minimize the possibility of
using an incorrect file or program are
1) External labels.
2) Limit checks.
3) Control totals.
4) Record counts. - (correct answer)1) External labels.
Audit teams would most likely use computer-assisted audit techniques to
1) Construct a parallel simulation to test the client's computer controls.
2) Perform tests of a client's hardware controls.
3) Make copies of client data files for controlled reprocessing.
4) Test the operative effectiveness of a client's password access control. - (correct
answer)1) Construct a parallel simulation to test the client's computer controls
Which of the following computerized processing systems generally can be audited
without examining or directly testing the computer programs of the system?
1) A system that affects a number of master files and produces limited output.
2) A system that performs relatively complicated processing and produces very little
detailed output.
3) A system that updates a few master files and produces no other printed output than
final balances.
4) A system that performs relatively uncomplicated processes and produces detailed
output. - (correct answer)4) A system that performs relatively uncomplicated processes
and produces detailed output.
