Systems and Control Auditing Pre-Test Questions
Course Introduction
Systems and Control Auditing explores the principles and practices used to evaluate and ensure the effectiveness of an organizations internal controls and information systems. The course covers the auditing process in both manual and computerized environments, emphasizing risk assessment, control frameworks (such as COSO and COBIT), and the application of audit technologies. Students will learn to identify system vulnerabilities, assess compliance with laws and regulations, and implement measures to mitigate risks. Through case studies and practical exercises, the course prepares students to design, review, and report on internal control systems in various business contexts.
Recommended Textbook
Information Technology Auditing 3rd Edition by James A. Hall
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12 Chapters
1295 Verified Questions
1295 Flashcards
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Chapter 1: Auditing and Internal Control
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103 Verified Questions
103 Flashcards
Source URL: https://quizplus.com/quiz/5812
Sample Questions
Q1) The board of directors consists entirely of personal friends of the chief executive officer.This indicates a weakness in
A) the accounting system
B) the control environment
C) control procedures
D) this is not a weakness
Answer: B
Q2) Which of the following is a preventive control?
A) credit check before approving a sale on account
B) bank reconciliation
C) physical inventory count
D) comparing the accounts receivable subsidiary ledger to the control account
Answer: A
Q3) The Sarbanes-Oxley Act contains many sections.Which sections are the focus of this chapter?
Answer: The chapter concentrates on internal control and audit responsibilities pursuant to Sections 302 and 404.
Q4) Locking petty cash in a safe is an example of __________________________. Answer: access controls
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Chapter 2: Auditing IT Governance Controls
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99 Verified Questions
99 Flashcards
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Sample Questions
Q1) A generally accepted advantage of IT outsourcing is improved security.
A)True
B)False
Answer: False
Q2) Which of the following is NOT a control implication of distributed data processing?
A)redundancy
B)user satisfaction
C)incompatibility
D)lack of standards
Answer: B
Q3) Which of the following disaster recovery techniques is has the least risk associated with it?
A)empty shell
B)ROC
C)internally provided backup
D)they are all equally risky
Answer: C
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Page 4
Chapter 3: Security Part I: Auditing Operating Systems and Networks
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143 Verified Questions
143 Flashcards
Source URL: https://quizplus.com/quiz/5814
Sample Questions
Q1) Only two types of motivation drive DoS attacks: 1)to punish an organization with which the perpetrator had a grievance; and 2)to gain bragging rights for being able to do it.
A)True
B)False
Answer: False
Q2) Which one of the following statements is correct?
A) Cookies always contain encrypted data.
B) Cookies are text files and never contain encrypted data.
C) Cookies contain the URLs of sites visited by the user.
D) Web browsers cannot function without cookies.
Answer: C
Q3) A bus topology is less costly to install than a ring topology.
A)True
B)False
Answer: True
Q4) Briefly define an operating system.
Answer: An integrated group of programs that supports the applications and facilitates their access to specified resources.
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Chapter 4: IT Security Part II: Auditing Database Systems
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101 Verified Questions
101 Flashcards
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Sample Questions
Q1) A deadlock is a phenomenon that prevents the processing of transactions.
A)True
B)False
Q2) One purpose of a database system is the easy sharing of data.But this ease of sharing can also jeopardize security.Discuss at least three forms of access control designed to reduce this risk.
Q3) What are the four elements of the database approach? Explain the role of each.
Q4) Subschemas are used to authorize user access privileges to specific data elements.
A)True
B)False
Q5) Which duty is not the responsibility of the database administrator?
A) to develop and maintain the data dictionary
B) to implement security controls
C) to design application programs
D) to design the subschema
Q6) The data dictionary describes all of the data elements in the database.
A)True
B)False
Q7) What services are provided by a database management system?
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Chapter 5: Systems Development and Program Change
Activities
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108 Verified Questions
108 Flashcards
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Sample Questions
Q1) Explain why the Systems Development Life Cycle is of interest to accountants.What is the accountant's role in the Systems Development Life Cycle?
Q2) Strategic systems planning is important because the plan
A) provides authorization control for the Systems Development Life Cycle B) will eliminate any crisis component in systems development C) provides a static goal to be attained within a five-year period D) all of the above
Q3) An accountant's responsibility in the SDLC is to ensure that the system applies proper accounting conventions and rules and possesses adequate control.
A)True
B)False
Q4) Instead of implementing an application in a single big-bang release,modern systems are delivered in parts continuously and quickly
A)True
B)False
Q5) One-time costs include operating and maintenance costs.
A)True
B)False
7
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Chapter 6: Overview of Transaction Processing and Financial Reporting Systems
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143 Verified Questions
143 Flashcards
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Sample Questions
Q1) The order of the entries made in the ledger is by
A) transaction number
B) account number
C) date
D) user
Q2) List two of the three transaction cycles.
Q3) The journal voucher is the document that authorizes entries to be made to the general ledger.
A)True
B)False
Q4) Which type of graphical documentation represents systems at different levels of detail?
A) data flow diagram
B) document flowchart
C) system flowchart
D) program flowchart
Q5) Program flowcharts are used to describe the logic represented in system flowcharts.
A)True
B)False
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Chapter 7: Computer-Assisted Audit Tools and Techniques
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83 Verified Questions
83 Flashcards
Source URL: https://quizplus.com/quiz/5818
Sample Questions
Q1) Various techniques can be used to control the input effort.Write a one-page essay discussing three techniques.
Q2) The black box approach to testing computer program controls is also known as auditing around the computer.
A)True
B)False
Q3) Name three types of transcription error.
Q4) 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
Q5) Give one example of an error that is detected by a check digit control.
Q6) The correct purchase order number,is123456.All of the following are transcription errors except
A) 1234567
B) 12345
C) 124356
D) 123454
Page 9
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Chapter 8: Data Structures and CAATTs for Data Extraction
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89 Verified Questions
89 Flashcards
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Sample Questions
Q1) The physical database is an abstract representation of the database.
A)True
B)False
Q2) What is the insertion anomaly?
Q3) What is repeating group data?
Q4) Contrast procedures for preparing backups in a sequential file environment and direct access file environment.
Q5) Contrast the navigational databases with relational databases.What is the primary advantage of the relational model?
Q6) Which statement is correct?
A) in a normalized database, data about vendors occur in several locations
B) the accountant is responsible for database normalization
C) in a normalized database, deletion of a key record could result in the destruction of the audit trail
D) connections between M:M tables are provided by a link table
Q7) What is the relationship between a database table and a user view?
Q8) Under the database approach,data is viewed as proprietary or owned by users.
A)True
B)False
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Chapter 9: Auditing the Revenue Cycle
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105 Verified Questions
105 Flashcards
Source URL: https://quizplus.com/quiz/5820
Sample Questions
Q1) The bill of lading is a legal contract between the buyer and the seller.
A)True
B)False
Q2) Inventory control has physical custody of inventory.
A)True
B)False
Q3) Give three examples of Access Control in a Point-of-Sale (POS)system.
Q4) The principal source document in the sales order system is the sales order.
A)True
B)False
Q5) Commercial accounting systems have fully integrated modules.The word "integrated" means that
A) segregation of duties is not possible
B) transfer of information among modules occurs automatically
C) batch processing is not an option
D) separate entries are made in the general ledger accounts and the subsidiary ledgers
Q6) With regard to segregation of duties,rule one is that transaction authorization and transaction processing should be separated.What does this require in the revenue cycle?
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Chapter 10: Auditing the Expenditure Cycle
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144 Verified Questions
144 Flashcards
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Sample Questions
Q1) In a manufacturing firm,employees typically fill out two different documents regarding their time worked.What are they? Why are there two?
Q2) One reason for authorizing purchases is to enable efficient inventory management.
A)True
B)False
Q3) Payroll processing can be automated easily because accounting for payroll is very simple.
A)True
B)False
Q4) Ideally,payroll checks are written on a special bank account used only for payroll.
A)True
B)False
Q5) What is(are)the purpose(s)of maintaining a valid vendor file?
Q6) A purchasing system that employs electronic data interchange does not use a purchase order.
A)True
B)False
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Page 12
Chapter 12: Business Ethics, Fraud, and Fraud Detection
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85 Verified Questions
85 Flashcards
Source URL: https://quizplus.com/quiz/5822
Sample Questions
Q1) Computer fraud can take on many forms,including each of the following except
A) theft or illegal use of computer-readable information
B) theft, misuse, or misappropriation of computer equipment
C) theft, misuse, or misappropriation of assets by altering computer-readable records and files
D) theft, misuse, or misappropriation of printer supplies
Q2) Collusion among employees in the commission of a fraud is difficult to prevent but easy to detect.
A)True
B)False
Q3) Which ethical principle states that the benefit from a decision must outweigh the risks,and that there is no alternative decision that provides the same or greater benefit with less risk?
A) minimize risk
B) justice
C) informed consent
D) proportionality
Q4) What is the objective of SAS 99?
Q5) What is check tampering?
Q6) What is scavenging?
Page 13
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Chapter 11: Enterprise Resource Planning Systems
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92 Verified Questions
92 Flashcards
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Sample Questions
Q1) The primary goal of installing an ERP system is achieving business process reengineering to improve customer service,reduce production time,increase productivity,and improve decision-making.
A)True
B)False
Q2) Core applications are
A) sales and distribution
B) business planning
C) shop floor control and logistics
D) all of the above
Q3) Why must a data warehouse include both detail and summary data?
Q4) Distinguish between the two-tier and three-tier client server model.Describe when each would be used?
Q5) Extracting data for a data warehouse
A) cannot be done from flat files.
B) should only involve active files.
C) requires that the files be out of service.
D) follows the cleansing of data.
Q6) What is a data warehouse?
Q7) How can a firm acquire bolt-on software? What are the options?
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