Question 1

The CISSP is the most widely recognized and respected certification for IT auditors.

Accepted Answer

The CISSP (Certified Information Systems Security Professional) is primarily recognized and respected in the field of information security, not specifically for IT auditing. For IT auditors, the CISA (Certified Information Systems Auditor) certification is more widely recognized and respected.

Question 2

The most important skills needed by information technology auditors are people skills.

Accepted Answer

People skills are essential for information technology auditors as they need to interact with a variety of stakeholders, including clients, management, and users.

Question 3

Many of the IIA's GTAGs provide an overview of risks, controls and proposed audit procedures for a wide array of IT audit areas.

Accepted Answer

The Institute of Internal Auditors (IIA) publishes Global Technology Audit Guides (GTAGs) that offer comprehensive overviews of various IT audit areas, including risks, controls, and suggested audit procedures, to assist auditors in effectively evaluating IT and business systems.

Question 4

External auditors report through a Chief Audit Executive to the Audit Committee of the Board of Directors.

Accepted Answer

External auditors are independent of the organization and report directly to the Audit Committee of the Board of Directors, not through a Chief Audit Executive. The Chief Audit Executive typically oversees the internal audit function within the organization.

Question 5

Use of test data is not recommended when evaluating integrated online systems.

Accepted Answer

Test data is not representative of real-world data and can lead to inaccurate results when evaluating integrated online systems.

Question 6

Embedded audit modules and audit hooks are examples of continuous auditing techniques.

Accepted Answer

Embedded audit modules and audit hooks are designed to continuously monitor and evaluate the integrity, security, and efficiency of information systems, making them examples of continuous auditing techniques.

Question 7

The main objective of information technology auditing is to evaluate an organization's IT infrastructure, processes and practices to provide assurance on the confidentiality, integrity and availability of information systems.

Accepted Answer

Information technology auditing aims to assess the IT infrastructure, processes, and practices within an organization to ensure that information systems are secure, reliable, and efficient, safeguarding the confidentiality, integrity, and availability of data.

Question 8

The impetus for IT auditing can be traced to the adoption of computerized accounting systems, migration of business processes to computerized platforms, and enforcement of data security.

Accepted Answer

The need for IT auditing emerged with the shift towards computerized accounting systems, the transition of business processes to digital platforms, and the necessity to enforce data security, to ensure the integrity, confidentiality, and availability of information.

Question 9

Both the internal audit and the external audit have the same primary objective (i.e., to verify that the financial records of the company have been prepared according to generally accepted accounting principles).

Accepted Answer

The primary objective of an internal audit is to assess the effectiveness of a company's internal controls, risk management, and governance processes, while the primary objective of an external audit is to verify that the financial records of the company have been prepared according to generally accepted accounting principles (GAAP) and to provide an independent opinion on the financial statements.

Question 10

Computer assisted audit techniques are used primarily when auditing around the computer.

Accepted Answer

Computer Assisted Audit Techniques (CAATs) are used to audit through the computer, meaning they directly test the software, systems, and data processed by the computer, not just around it.

Question 11

Normal transactions rather than exception transactions are of most interest to auditors.

Accepted Answer

Auditors are particularly interested in exception transactions because they are more likely to contain errors, irregularities, or be indicative of fraudulent activity, thus requiring closer examination.

Question 12

The Institute of Internal Auditors (IIA)released the Information Technology Assurance Framework (ITAF)as a "professional practices framework for IS audit and assurance".

Accepted Answer

The Information Technology Assurance Framework (ITAF) was released by ISACA, not the Institute of Internal Auditors (IIA).

Question 13

The greatest advantage of an integrated test facility is that it enables an auditor to examine both manual and computerized steps companies use to process business transactions.
Renumber all questions below and adjust solutions accordingly

Accepted Answer

An integrated test facility primarily allows auditors to test the computerized processing of transactions by inserting fictitious transactions into a company's systems and observing how they are processed, without necessarily examining manual steps.

Question 14

An auditing around the computer approach pays little or no attention to the control procedures within an IT environment.

Accepted Answer

An "auditing around the computer" approach focuses on verifying the input data and the output results of computer systems, without examining the internal workings or control procedures of the IT environment.

Question 15

Public companies are required to adopt the Control Objectives for Information and Related Technology framework under SOX.

Accepted Answer

SOX (Sarbanes-Oxley Act) does not specifically require public companies to adopt the Control Objectives for Information and Related Technology (COBIT) framework; it mandates an internal control framework without specifying COBIT.

Question 16

If control procedures over a company's computerized financial accounting system are particularly strong, auditors will not need to perform any substantive testing.

Accepted Answer

Even with strong control procedures, auditors must perform substantive testing to verify the accuracy and completeness of the financial statements and to ensure that the controls are operating effectively.

Question 17

Many of the assurance services auditors offer today involve information technology.

Accepted Answer

Assurance services, including those related to financial audits, increasingly involve information technology due to the significant role IT plays in financial reporting, data management, and operational processes within organizations.

Question 18

?Renumber all questions below and adjust solutions accordingly
An information systems risk assessment is as concerned with errors and accidents as it is with fraud.
Renumber all questions below and adjust solutions accordingly

Accepted Answer

An information systems risk assessment aims to identify and evaluate risks to the system, including those arising from errors, accidents, and intentional acts of fraud, as all can significantly impact the integrity, availability, and confidentiality of information systems.

Question 19

Certified Information Systems Auditors must have an accounting degree.

Accepted Answer

Certified Information Systems Auditors (CISA) do not necessarily need an accounting degree. The certification focuses on information systems audit, control, and security, and candidates must meet experience requirements and pass an exam.

Question 20

Electronic Workpaper software (EWP)enable the auditor to review computer files without continually rewriting processing programs.

Accepted Answer

The answer of Electronic Workpaper software (EWP)enable the auditor to...

Quiz 11: Information Technology Auditing