Chapter 11 Auditing Computer Based Information Systems

Accounting Information Systems, 12e (Romney/Steinbart)
Chapter 11 Auditing Computer-Based Information Systems

1) Auditing involves the
A) collection, review, and documentation of audit evidence.
B) planning and verification of economic events.
C) collection of audit evidence and approval of economic events.
D) testing, documentation, and certification of audit evidence.
Answer: A
Page Ref: 303
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic

2) What is not a typical responsibility of an internal auditor?
A) helping management to improve organizational effectiveness
B) assisting in the design and implementation of an AIS
C) preparation of the company's financial statements
D) implementing and monitoring of internal controls
Answer: C
Page Ref: 303
Objective: Learning Objective 1
Difficulty : Moderate
AACSB: Analytic

3) Which type of work listed below is not typical of internal auditors?
A) operational and management audits
B) information system audits
C) financial statement audit
D) financial audit of accounting records
Answer: C
Page Ref: 303
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic

4) The ________ audit examines the reliability and integrity of accounting records.
A) financial
B) informational
C) information systems
D) operational
Answer: A
Page Ref: 303
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic




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Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall

,5) The ________ audit reviews the general and application controls of an AIS to assess its compliance
with internal control policies and procedures and its effectiveness in safeguarding assets.
A) financial
B) information systems
C) management
D) internal control
Answer: B
Page Ref: 304
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic

6) One type of audit that is concerned with the economical and efficient use of resources and the
accomplishment of established goals and objectives is known as a(n) ________ audit.
A) financial
B) information systems
C) internal control
D) operational or management
Answer: D
Page Ref: 304
Objective: Learning Objective 1
Difficulty : Moderate
AACSB: Analytic

7) The ________ audit is concerned with the economical and efficient use of resources and the
accomplishment of established goals and objectives.
A) financial
B) informational
C) information systems
D) operational
Answer: D
Page Ref: 304
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic

8) The purpose of ________ is to determine why, how, when, and who will perform the audit.
A) audit planning
B) the collection of audit evidence
C) the communication of audit results
D) the evaluation of audit evidence
Answer: A
Page Ref: 304
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic




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Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall

, 9) Organizing the audit team and the physical examination of assets are components of which two
separate audit stages?
A) planning; evaluating audit evidence
B) planning; collecting audit evidence
C) collecting audit evidence; communicating audit results
D) communicating audit results; evaluating audit evidence
Answer: B
Page Ref: 304-305
Objective: Learning Objective 1
Difficulty : Moderate
AACSB: Analytic

10) With which stage in the auditing process are the consideration of risk factors and materiality most
associated?
A) audit planning
B) collection of audit evidence
C) communication of audit results
D) evaluation of audit evidence
Answer: A
Page Ref: 304
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic

11) A system that employs various types of advanced technology has more ________ risk than
traditional batch processing.
A) control
B) detection
C) inherent
D) investing
Answer: C
Page Ref: 304
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic

12) Control risk is defined as the
A) susceptibility to material risk in the absence of controls.
B) risk that a material misstatement will get through the internal control structure and into the financial
statements.
C) risk that auditors and their audit procedures will not detect a material error or misstatement.
D) risk auditors will not be given the appropriate documents and records by management who wants to
control audit activities and procedures.
Answer: B
Page Ref: 304
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic


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Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall