Test Bank For Information Technology Auditing 4th Edition By James A. Hall (All Chapters, Fully Covered 100% Original Verified, A+ Grade)

IT Auditing 4th Ed—Test Bank,
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Test Bank for Information Technology Auditing, 4th
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Edition by James A. Hall ISBN
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Chapter 1—Auditing and Internal Control
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TRUE/FALSE

1. Corporate management (including the CEO) must certify monthly and annually their
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organization‟s internal controls over financial reporting.
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ANS: G i G F PTS: G i G G i G 1

2. Both the SEC and the PCAOB require management to use the COBIT framework for
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assessing internal control adequacy.
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ANS: G i G F PTS: G i G G i G 1

3. Both the SEC and the PCAOB require management to use the COSO framework for
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assessing internal control adequacy.
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ANS: G i G F PTS: G i G G i G 1

4. A qualified opinion on management‟s assessment of internal controls over the financial
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reporting system necessitates a qualified opinion on the financial statements?
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ANS: G i G F PTS: G i G G i G 1

5. The same internal control objectives apply to manual and computer-based information systems.
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ANS: G i G T PTS: G i G G i G 1

6. The external auditor is responsible for establishing and maintaining the internal control system.
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ANS: G i G F PTS: G i G G i G 1

7. Segregation of duties is an example of an internal control procedure.
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, IT Auditing 4th Ed—Test Bank,
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Chapter 1
ANS: G i G T PTS: G i G G i G 1


8. Preventive controls are passive techniques designed to reduce fraud.
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ANS: G i G T PTS: G i G G i G 1

9. A key modifying assumption in internal control is that the internal control system is the
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responsibility of management.
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ANS: G i G T PTS: G i G G i G 1




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, IT Auditing 4th Ed—Test Bank,
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Chapter 1




10. While the Sarbanes-Oxley Act prohibits auditors from providing non-accounting services to
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their audit clients, they are not prohibited from performing such services for non-audit
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clients or privately held companies.
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ANS: G i G T PTS: G i G G i G 1

11. The Sarbanes-Oxley Act requires the audit committee to hire and oversee the external auditors.
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ANS: G i G T PTS: G i G G i G 1

12. Section 404 requires that corporate management (including the CEO) certify their
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organization‟s internal controls on a quarterly and annual basis.
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ANS: G i G F PTS: G i G G i G 1

13. Section 302 requires the management of public companies to assess and formally
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report on the effectiveness of their organization‟s internal controls.
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ANS: G i G F PTS: G i G G i G 1


14. Application controls apply to a wide range of exposures that threaten the integrity
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of all programs processed within the computer environment.
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ANS: G i G F PTS: G i G G i G 1

15. Advisory services is an emerging field that goes beyond the auditor‟s traditional attestation
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function.
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ANS: G i G T PTS: G i G G i G 1

16. An IT auditor expresses an opinion on the fairness of the financial statements.
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ANS: G i G F PTS: G i G G i G 1

17. External auditing is an independent appraisal function established within an organization to
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examine and evaluate its activities as a service to the organization.
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ANS: G i G F PTS: G i G G i G 1

18. External auditors can cooperate with and use evidence gathered by internal audit
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, IT Auditing 4th Ed—Test Bank, GiG GiG GiG GiG


GiGdepartments that are organizationally independent and that Chapter
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1 the Audit
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GiGCommittee of the Board of Directors.
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