Test Bank for Information Technology Auditing, 4th Edition – James Hall | Verified Questions | 2025/2026 Latest Update

, IT79Auditing794th79Ed—
Test Bank, Chapter 1

Chapter791—Auditing79and79Internal79Control

TRUE/FALSE

1. Corporate79management79(including79the79CEO)79must79certify79monthly79and79annually79their79orga
nization‟s79internal79controls79over79financial79reporting.

ANS:7 9 F PTS:7 9 7 9 1

2. Both79the79SEC79and79the79PCAOB79require79management79to79use79the79COBIT79framework79for79asses
sing79internal79control79adequacy.

ANS:7 9 F PTS:7 9 7 9 1

3. Both79the79SEC79and79the79PCAOB79require79management79to79use79the79COSO79framework79for79asse
ssing79internal79control79adequacy.

ANS:7 9 F PTS:7 9 7 9 1

4. A79qualified79opinion79on79management‟s79assessment79of79internal79controls79over79the79financial79report
ing79system79necessitates79a79qualified79opinion79on79the79financial79statements?

ANS:7 9 F PTS:7 9 7 9 1

5. The79same79internal79control79objectives79apply79to79manual79and79computer-based79information79systems.

ANS:7 9 T PTS:7 9 7 9 1

6. The79external79auditor79is79responsible79for79establishing79and79maintaining79the79internal79control79system.

ANS:7 9 F PTS:7 9 7 9 1

7. Segregation79of79duties79is79an79example79of79an79internal79control79procedure.

ANS:7 9 T PTS:7 9 7 9 1


8. Preventive79controls79are79passive79techniques79designed79to79reduce79fraud.

ANS:7 9 T PTS:7 9 7 9 1

9. A7 9 key79modifying79assumption79in79internal79control79is79that79the79internal79control79system79is79the79re
sponsibility79of79management.

ANS:7 9 T PTS:7 9 7 9 1

©79201679Cengage79Learning®.7 9 May79not79be79scanned,79copied79or79duplicated79or79posted79to79a79publicly79accessible79website,79in79whole79or79
in79part,79except79for79use79as79permitted79in79a7 9 license79distributed79with79a79certain79product79or79service79or79otherwise79on79a79password-
protected79website79or79school-approved79learning79management79system79for79classroom79use.

, IT79Auditing794th79Ed—
Test Bank, Chapter 1




10. While79the79Sarbanes-Oxley79Act79prohibits79auditors79from79providing79non-
accounting79services79to79their79audit79clients,79they79are79not79prohibited79from79performing79such79ser
vices79for79non-audit79clients79or79privately79held79companies.

ANS:7 9 T PTS:7 9 7 9 1

11. The79Sarbanes-Oxley79Act79requires79the79audit79committee79to79hire79and79oversee79the79external79auditors.

ANS:7 9 T PTS:7 9 7 9 1

12. Section7940479requires79that79corporate79management79(including79the79CEO)79certify79their79organization
‟s79internal79controls79on79a79quarterly79and79annual79basis.

ANS:7 9 F PTS:7 9 7 9 1

13. Section7930279requires79the79management79of79public79companies79to79assess79and79formally79re
port79on79the79effectiveness79of79their79organization‟s79internal79controls.

ANS:7 9 F PTS:7 9 7 9 1


14. Application79controls79apply79to79a79wide79range79of79exposures79that79threaten79the79integrity79of79
all79programs79processed79within79the79computer79environment.

ANS:7 9 F PTS:7 9 7 9 1

15. Advisory79services79is79an79emerging79field79that79goes79beyond79the79auditor‟s79traditional79attestation79function
.

ANS:7 9 T PTS:7 9 7 9 1

16. An79IT79auditor79expresses79an79opinion79on79the79fairness79of79the79financial79statements.

ANS:7 9 F PTS:7 9 7 9 1

17. External79auditing79is79an79independent79appraisal79function79established79within79an79organization79to79e
xamine79and79evaluate79its79activities79as79a79service79to79the79organization.

ANS:7 9 F PTS:7 9 7 9 1

18. External79auditors79can79cooperate79with79and79use79evidence79gathered79by79internal79audit79departme
©79201679Cengage79Learning®.7 9 May79not79be79scanned,79copied79or79duplicated79or79posted79to79a79publicly79accessible79website,79in79whole79or79
in79part,79except79for79use79as79permitted79in79a7 9 license79distributed79with79a79certain79product79or79service79or79otherwise79on79a79password-
protected79website79or79school-approved79learning79management79system79for79classroom79use.

, IT79Auditing794th79Ed—
nts79that79are79organizationally79independent79and79that79report79to79 the79Bank,
Test Audit79Chapter
Committee
1 79of79the79
Board79of79Directors.




©79201679Cengage79Learning®.7 9 May79not79be79scanned,79copied79or79duplicated79or79posted79to79a79publicly79accessible79website,79in79whole79or79
in79part,79except79for79use79as79permitted79in79a7 9 license79distributed79with79a79certain79product79or79service79or79otherwise79on79a79password-
protected79website79or79school-approved79learning79management79system79for79classroom79use.