, IT bAuditing b4th bEd—Test bBank, bChapter
b1
Chapter b1—Auditing band bInternal bControl
TRUE/FALSE
1. Corporate bmanagement b(including bthe bCEO) bmust bcertify bmonthly band bannually btheir
borganization’s binternal bcontrols bover bfinancial breporting.
ANS: b F PTS: b b 1
2. Both bthe bSEC band bthe bPCAOB brequire bmanagement bto buse bthe bCOBIT bframework bfor bassessing
binternal bcontrol badequacy.
ANS: b F PTS: b b 1
3. Both bthe bSEC band bthe bPCAOB brequire bmanagement bto buse bthe bCOSO bframework bfor bassessing
binternal bcontrol badequacy.
ANS: b F PTS: b b 1
4. A bqualified bopinion bon bmanagement’s bassessment bof binternal bcontrols bover bthe bfinancial breporting
bsystem bnecessitates ba bqualified bopinion bon bthe bfinancial bstatements?
ANS: b F PTS: b b 1
5. The bsame binternal bcontrol bobjectives bapply bto bmanual band bcomputer-based binformation bsystems.
ANS: b T PTS: b b 1
6. The bexternal bauditor bis bresponsible bfor bestablishing band bmaintaining bthe binternal bcontrol bsystem.
ANS: b F PTS: b b 1
7. Segregation bof bduties bis ban bexample bof ban binternal bcontrol bprocedure.
ANS: b T PTS: b b 1
8. Preventive bcontrols bare bpassive btechniques bdesigned bto breduce bfraud.
ANS: b T PTS: b b 1
9. A b key bmodifying bassumption bin binternal bcontrol bis bthat bthe binternal bcontrol bsystem bis bthe
bresponsibility bof bmanagement.
ANS: b T PTS: b b 1
© b2016 bCengage bLearning®. b May bnot bbe bscanned, bcopied bor bduplicated bor bposted bto ba bpublicly baccessible bwebsite, bin bwhole bor bin bpart, bexcept
bfor buse bas bpermitted bin ba b license bdistributed bwith ba bcertain bproduct bor bservice bor botherwise bon ba bpassword-protected bwebsite bor bschool-approved
blearning bmanagement bsystem bfor bclassroom buse.
, IT bAuditing b4th bEd—Test bBank, bChapter
b1
10. While bthe bSarbanes-Oxley bAct bprohibits bauditors bfrom bproviding bnon-accounting bservices bto btheir
baudit bclients, bthey bare bnot bprohibited bfrom bperforming bsuch bservices bfor bnon-audit bclients bor
bprivately bheld bcompanies.
ANS: b T PTS: b b 1
11. The bSarbanes-Oxley bAct brequires bthe baudit bcommittee bto bhire band boversee bthe bexternal bauditors.
ANS: b T PTS: b b 1
12. Section b404 brequires bthat bcorporate bmanagement b(including bthe bCEO) bcertify btheir borganization’s
binternal bcontrols bon ba bquarterly band bannual bbasis.
ANS: b F PTS: b b 1
13. Section b302 brequires bthe bmanagement bof bpublic bcompanies bto bassess band bformally breport
bon bthe beffectiveness bof btheir borganization’s binternal bcontrols.
ANS: b F PTS: b b 1
14. Application bcontrols bapply bto ba bwide brange bof bexposures bthat bthreaten bthe bintegrity bof ball
bprograms bprocessed bwithin bthe bcomputer benvironment.
ANS: b F PTS: b b 1
15. Advisory bservices bis ban bemerging bfield bthat bgoes bbeyond bthe bauditor’s btraditional battestation bfunction.
ANS: b T PTS: b b 1
16. An bIT bauditor bexpresses ban bopinion bon bthe bfairness bof bthe bfinancial bstatements.
ANS: b F PTS: b b 1
17. External bauditing bis ban bindependent bappraisal bfunction bestablished bwithin ban borganization bto bexamine
band bevaluate bits bactivities bas ba bservice bto bthe borganization.
ANS: b F PTS: b b 1
18. External bauditors bcan bcooperate bwith band buse bevidence bgathered bby binternal baudit bdepartments
bthat bare borganizationally bindependent band bthat breport bto bthe bAudit bCommittee bof bthe bBoard bof
© b2016 bCengage bLearning®. b May bnot bbe bscanned, bcopied bor bduplicated bor bposted bto ba bpublicly baccessible bwebsite, bin bwhole bor bin bpart, bexcept
bfor buse bas bpermitted bin ba b license bdistributed bwith ba bcertain bproduct bor bservice bor botherwise bon ba bpassword-protected bwebsite bor bschool-approved
blearning bmanagement bsystem bfor bclassroom buse.
, IT bAuditing b4th bEd—Test bBank, bChapter
bDirectors. b1
© b2016 bCengage bLearning®. b May bnot bbe bscanned, bcopied bor bduplicated bor bposted bto ba bpublicly baccessible bwebsite, bin bwhole bor bin bpart, bexcept
bfor buse bas bpermitted bin ba b license bdistributed bwith ba bcertain bproduct bor bservice bor botherwise bon ba bpassword-protected bwebsite bor bschool-approved
blearning bmanagement bsystem bfor bclassroom buse.
b1
Chapter b1—Auditing band bInternal bControl
TRUE/FALSE
1. Corporate bmanagement b(including bthe bCEO) bmust bcertify bmonthly band bannually btheir
borganization’s binternal bcontrols bover bfinancial breporting.
ANS: b F PTS: b b 1
2. Both bthe bSEC band bthe bPCAOB brequire bmanagement bto buse bthe bCOBIT bframework bfor bassessing
binternal bcontrol badequacy.
ANS: b F PTS: b b 1
3. Both bthe bSEC band bthe bPCAOB brequire bmanagement bto buse bthe bCOSO bframework bfor bassessing
binternal bcontrol badequacy.
ANS: b F PTS: b b 1
4. A bqualified bopinion bon bmanagement’s bassessment bof binternal bcontrols bover bthe bfinancial breporting
bsystem bnecessitates ba bqualified bopinion bon bthe bfinancial bstatements?
ANS: b F PTS: b b 1
5. The bsame binternal bcontrol bobjectives bapply bto bmanual band bcomputer-based binformation bsystems.
ANS: b T PTS: b b 1
6. The bexternal bauditor bis bresponsible bfor bestablishing band bmaintaining bthe binternal bcontrol bsystem.
ANS: b F PTS: b b 1
7. Segregation bof bduties bis ban bexample bof ban binternal bcontrol bprocedure.
ANS: b T PTS: b b 1
8. Preventive bcontrols bare bpassive btechniques bdesigned bto breduce bfraud.
ANS: b T PTS: b b 1
9. A b key bmodifying bassumption bin binternal bcontrol bis bthat bthe binternal bcontrol bsystem bis bthe
bresponsibility bof bmanagement.
ANS: b T PTS: b b 1
© b2016 bCengage bLearning®. b May bnot bbe bscanned, bcopied bor bduplicated bor bposted bto ba bpublicly baccessible bwebsite, bin bwhole bor bin bpart, bexcept
bfor buse bas bpermitted bin ba b license bdistributed bwith ba bcertain bproduct bor bservice bor botherwise bon ba bpassword-protected bwebsite bor bschool-approved
blearning bmanagement bsystem bfor bclassroom buse.
, IT bAuditing b4th bEd—Test bBank, bChapter
b1
10. While bthe bSarbanes-Oxley bAct bprohibits bauditors bfrom bproviding bnon-accounting bservices bto btheir
baudit bclients, bthey bare bnot bprohibited bfrom bperforming bsuch bservices bfor bnon-audit bclients bor
bprivately bheld bcompanies.
ANS: b T PTS: b b 1
11. The bSarbanes-Oxley bAct brequires bthe baudit bcommittee bto bhire band boversee bthe bexternal bauditors.
ANS: b T PTS: b b 1
12. Section b404 brequires bthat bcorporate bmanagement b(including bthe bCEO) bcertify btheir borganization’s
binternal bcontrols bon ba bquarterly band bannual bbasis.
ANS: b F PTS: b b 1
13. Section b302 brequires bthe bmanagement bof bpublic bcompanies bto bassess band bformally breport
bon bthe beffectiveness bof btheir borganization’s binternal bcontrols.
ANS: b F PTS: b b 1
14. Application bcontrols bapply bto ba bwide brange bof bexposures bthat bthreaten bthe bintegrity bof ball
bprograms bprocessed bwithin bthe bcomputer benvironment.
ANS: b F PTS: b b 1
15. Advisory bservices bis ban bemerging bfield bthat bgoes bbeyond bthe bauditor’s btraditional battestation bfunction.
ANS: b T PTS: b b 1
16. An bIT bauditor bexpresses ban bopinion bon bthe bfairness bof bthe bfinancial bstatements.
ANS: b F PTS: b b 1
17. External bauditing bis ban bindependent bappraisal bfunction bestablished bwithin ban borganization bto bexamine
band bevaluate bits bactivities bas ba bservice bto bthe borganization.
ANS: b F PTS: b b 1
18. External bauditors bcan bcooperate bwith band buse bevidence bgathered bby binternal baudit bdepartments
bthat bare borganizationally bindependent band bthat breport bto bthe bAudit bCommittee bof bthe bBoard bof
© b2016 bCengage bLearning®. b May bnot bbe bscanned, bcopied bor bduplicated bor bposted bto ba bpublicly baccessible bwebsite, bin bwhole bor bin bpart, bexcept
bfor buse bas bpermitted bin ba b license bdistributed bwith ba bcertain bproduct bor bservice bor botherwise bon ba bpassword-protected bwebsite bor bschool-approved
blearning bmanagement bsystem bfor bclassroom buse.
, IT bAuditing b4th bEd—Test bBank, bChapter
bDirectors. b1
© b2016 bCengage bLearning®. b May bnot bbe bscanned, bcopied bor bduplicated bor bposted bto ba bpublicly baccessible bwebsite, bin bwhole bor bin bpart, bexcept
bfor buse bas bpermitted bin ba b license bdistributed bwith ba bcertain bproduct bor bservice bor botherwise bon ba bpassword-protected bwebsite bor bschool-approved
blearning bmanagement bsystem bfor bclassroom buse.
