Multiple Choice Questions: 1. CIS has several significant effects on an organization. Which of the following would not be important from an auditing perspective< a. organizational changes c. the potential for material misstatement b, the visibility of information d. none of the above; i.e. they are all important 2. An important characteristic of CIS is uniformity of processing. Therefore, a risk exists that: a. Auditors will not be able to access data quickly. b. Auditors will not be able to determine if data is processed consistently. c. Erroneous processing can result in the accumulation of a great number of misstatements in a short period Which of time. d. All of the above 3. Which of the following is not a risk specific to CIS environment ? a. reliance on the functioning capabilities of hardware and software. b. increased human involvement c. loss of data due to insufficient backup d. unauthorized access 4. Which of the following is not a risk specific to CIS environment? a. reliance on the functioning capabilities of hardware and software b. increased human involvement c. loss of data due to insufficient backup d. unauthorized access 5. Which of the following is not a risk in a computerized information system (CIS) a. need for CIS experienced staff b. separation of CIS duties from accounting functions c. improved audit trail d. hardware and data vulnerability 6. The use of CIS will least likely affect the a. The procedures followed by the auditor in obtaining a sufficient understanding of the accounting and internal control systems b. The auditor's specific audit objectives. c. The consideration of inherent risk and control risk through which the auditor arrives at the risk assessment. d. The auditor's design and performance of tests of control and substantive procedures appropriate to meet the audit objective. 7. Which of the following is unique to CIS? a. error listing b. flowchart c, questionnaires d. pre-numbered documents 8. Which of the following is a component of general controls? a. processing controls b. output controls c. back-up and contingency planning d. input controls 9. Which of the following is correct? a. Auditors should evaluate application controls before evaluating general controls b. Auditors should evaluate application controls and general controls simultaneously. c. Auditors should evaluate general controls before evaluating application controls. d. None of these statements is correct. 10. Which of the following is least likely to be a general control over computer activities? a. Procedures for developing new programs and systems b. Requirements for system documentation c. An access control d. A control total
Multiple Choice Questions:
1. CIS has several significant effects on an organization. Which of the following would not be important from an auditing perspective<
a. organizational changes c. the potential for material misstatement
b, the visibility of information d. none of the above; i.e. they are all important
2. An important characteristic of CIS is uniformity of processing. Therefore, a risk exists that:
a. Auditors will not be able to access data quickly.
b. Auditors will not be able to determine if data is processed consistently.
c. Erroneous processing can result in the accumulation of a great number of misstatements in a short period Which of time.
d. All of the above
3. Which of the following is not a risk specific to CIS environment ?
a. reliance on the functioning capabilities of hardware and software.
b. increased human involvement
c. loss of data due to insufficient backup
d. unauthorized access
4. Which of the following is not a risk specific to CIS environment?
a. reliance on the functioning capabilities of hardware and software
b. increased human involvement
c. loss of data due to insufficient backup
d. unauthorized access
5. Which of the following is not a risk in a computerized information system (CIS)
a. need for CIS experienced staff
b. separation of CIS duties from accounting functions
c. improved audit trail
d. hardware and data vulnerability
6. The use of CIS will least likely affect the
a. The procedures followed by the auditor in obtaining a sufficient understanding of the accounting and
internal
b. The auditor's specific audit objectives.
c. The consideration of inherent risk and control risk through which the auditor arrives at the risk
assessment.
d. The auditor's design and performance of tests of control and substantive procedures appropriate to
meet the audit objective.
7. Which of the following is unique to CIS?
a. error listing
b. flowchart
c, questionnaires
d. pre-numbered documents
8. Which of the following is a component of general controls?
a. processing controls
b. output controls
c. back-up and contingency planning
d. input controls
9. Which of the following is correct?
a. Auditors should evaluate application controls before evaluating general controls
b. Auditors should evaluate application controls and general controls simultaneously.
c. Auditors should evaluate general controls before evaluating application controls.
d. None of these statements is correct.
10. Which of the following is least likely to be a general control over computer activities?
a. Procedures for developing new programs and systems
b. Requirements for system documentation
c. An access control
d. A control total
Required: choose the correct answer and Justify your answers in at least 6 sentences.
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