Question 1

Which statement is not true? Embedded audit modules
A) can be turned on and off by the auditor.
B) reduce operating efficiency.
C) may lose their viability in an environment where programs are modified frequently.
D) identify transactions to be analyzed using white box tests.

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Question 2

What are the three broad categories of application controls?

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Question 3

Which of the following is an input control?
A) Reasonableness check
B) Run-to-run check
C) Spooling check
D) Batch check
E) None are input controls

Accepted Answer

Reasonableness check is an input control that is used to check the accuracy and completeness of input data by comparing them to a predetermined set of criteria or values. This control ensures that input data are within the expected range and are consistent with the business rules and requirements. Run-to-run check, spooling check, and batch check are not input controls.

Question 4

Which of the following is not an input control?
A) Range check
B) Limit check
C) Spooling check
D) Validity check
E) They are all input controls

Accepted Answer

Spooling check is not an input control. It is a technique used for improving computer performance by temporarily putting output in a buffer, allowing input/output processing and printing to be done separately. The other options listed are all valid input controls for ensuring data accuracy and completeness.

Question 5

Auditors do not rely on detailed knowledge of the application's internal logic when they use the __________________________ approach to auditing computer applications.

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Question 6

What is an embedded audit module?

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Question 7

Generalized audit software packages perform all of the following tasks except
A) recalculate data fields
B) compare files and identify differences
C) stratify statistical samples
D) analyze results and form opinions

Accepted Answer

Generalized audit software packages can recalculate data fields, compare files and identify differences, and stratify statistical samples. However, they cannot analyze results and form opinions as this requires the use of professional judgment and expertise.

Question 8

Contrast the source program library (SPL)management system to the database management system (DBMS).

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Question 9

Describe two methods used to control the source program library.

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Question 10

All of the following statements are true about the integrated test facility (ITF)except
A) production reports are affected by ITF transactions
B) ITF databases contain "dummy" records integrated with legitimate records
C) ITF permits ongoing application auditing
D) ITF does not disrupt operations or require the intervention of computer services personnel

Accepted Answer

The integrated test facility (ITF) method involves integrating test data into a live production environment, but it is designed in such a way that it does not affect actual production reports. The purpose of ITF is to allow for testing and auditing without disrupting normal operations, which includes ensuring that production reports remain accurate and unaffected by the test transactions.

Question 11

What is meant by auditing around the computer versus auditing through the computer? Why is this so important?

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Question 12

Describe parallel simulation.

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Question 13

What are the three categories of processing control?

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Question 14

Output controls ensure that output is not lost,misdirected,or corrupted and that privacy is not violated.What are some output exposures or situations where output is at risk?

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Question 15

How does privacy relate to output control?

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Question 16

A __________________________ fraud affects a large number of victims but the harm to each appears to be very small.

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Question 17

New system development activity controls must focus on the authorization,development,and implementation of new systems and its maintenance.Discuss at least five control activities that are found in an effective system development life cycle.

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Question 18

Describe a test of controls that would provide evidence that only authorized program maintenance is occurring.

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Question 19

Name four input controls and describe what they test

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Question 20

What control issue is related to reentering corrected error records into a batch processing system? What are the two methods for doing this?

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Quiz 17: IT Controls : Systems Development Program Changes and Application Controls

Which statement is not true? Embedded audit modules