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

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

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: t 1 F PTS: t 1 t 1 1

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

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

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

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

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

7. Segregation of duties is an example of an internal control procedure.
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ANS: t 1 T PTS: t 1 t 1 1


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

© t12016 t1Cengage t1Learning®. t 1 May t1not t1be t1scanned, t1copied t1or t1duplicated t1or t1posted t1to t1a t1publicly t1accessible t1website, t1in t1whole t1or t1in t1part,
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school-approved learning management system for classroom use.

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




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

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

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

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


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

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

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

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

18. External auditors can cooperate with and use evidence gathered by internal audit departments
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that are organizationally independent and that report to the Audit Committee of the Board of
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© t12016 t1Cengage t1Learning®. t 1 May t1not t1be t1scanned, t1copied t1or t1duplicated t1or t1posted t1to t1a t1publicly t1accessible t1website, t1in t1whole t1or t1in t1part,
t1except t1for t1use t1as t1permitted t1in t1a t 1 license t1distributed t1with t1a t1certain t1product t1or t1service t1or t1otherwise t1on t1a t1password-protected t1website t1or

school-approved learning management system for classroom use.

, IT Auditing 4th Ed—Test Bank, Chapter
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t1 Directors. 1




© t12016 t1Cengage t1Learning®. t 1 May t1not t1be t1scanned, t1copied t1or t1duplicated t1or t1posted t1to t1a t1publicly t1accessible t1website, t1in t1whole t1or t1in t1part,
t1except t1for t1use t1as t1permitted t1in t1a t 1 license t1distributed t1with t1a t1certain t1product t1or t1service t1or t1otherwise t1on t1a t1password-protected t1website t1or

school-approved learning management system for classroom use.