Question 1

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 2

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

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Question 3

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 4

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 are designed to assist auditors in performing audit procedures on large volumes of data. These software packages can recalculate data fields, compare files and identify differences, and stratify statistical samples. However, they do not analyze results and form opinions, which is a task that requires the professional judgment of the auditor. Therefore, option D is the correct answer because it is the only task that is not performed by generalized audit software packages.

Question 5

What is GAS? Identify two examples of GAS products.

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Question 6

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 7

What are program version numbers and how are the used?

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Question 8

What is ITF?

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Question 9

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 10

What is an embedded audit module?

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Question 11

What are the audit's objectives relating to systems development?

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Question 12

Describe two methods used to control the source program library.

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Question 13

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

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Question 14

What are CAATS? Identify five of them.

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Question 15

All of the following are disadvantages of the test data technique except
A) the test data technique requires extensive computer expertise on the part of the auditor
B) the auditor cannot be sure that the application being tested is a copy of the current application used by computer services personnel
C) the auditor cannot be sure that the application being tested is the same application used throughout the entire year
D) preparation of the test data is time-consuming

Accepted Answer

The test data technique does not require extensive computer expertise on the part of the auditor. In fact, it is a relatively simple and straightforward technique that involves preparing test data to simulate transactions in the system being audited. The other options (B, C, D) are all disadvantages of the test data technique.

Question 16

All of the following are advantages of the test data technique except
A) auditors need minimal computer expertise to use this method
B) this method causes minimal disruption to the firm's operations
C) the test data is easily compiled
D) the auditor obtains explicit evidence concerning application functions

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Question 17

Describe parallel simulation.

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Question 18

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

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Question 19

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

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Question 20

Identify six controllable activities that distinguish an effective systems development process.

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Quiz 17: IT Controls Part III: Systems Development, Program Changes, and Application Controls