Auditing and Information Systems
Solved Exam Questions
Course Introduction
This course examines the principles and practices of auditing, with a particular focus on the role of information systems in the audit process. Students will explore the regulatory environment, audit methodologies, and the use of technology in internal and external audits. Topics include risk assessment, controls evaluation, evidence collection, and reporting in the context of computerized environments. Emphasis is placed on auditing information systems, understanding cybersecurity risks, and leveraging audit software and data analytics tools to enhance audit quality and assurance. The course equips students with the skills necessary to assess IT controls and effectively participate in modern audit engagements.
Recommended Textbook
Accounting Information Systems 12th Edition by Marshall B. Romney
Available Study Resources on Quizplus
22 Chapters
1496 Verified Questions
1496 Flashcards
Source URL: https://quizplus.com/study-set/3388 Page 2
Chapter 1: Accounting Information Systems: an Overview
Available Study Resources on Quizplus for this Chatper
79 Verified Questions
79 Flashcards
Source URL: https://quizplus.com/quiz/67241
Sample Questions
Q1) The American Institute of Certified Public Accountants (AICPA)has recognized the importance of AIS and the major impact information technology has on the area of accounting.To recognize individual CPAs who have met educational and experiential requirements in this area,the group formally created the designation known as
A) the Certified Management Accountant.
B) the Certified Information Technology Professional.
C) the Certified Internal Auditor.
D) the Certified Data Processing Professional.
Answer: B
Q2) Define data,information,and how the value of information is determined.
Answer: Data: facts that are collected,entered,recorded,stored,and processed by an AIS.Information: data that has been organized and processed and is meaningful to its users.Such information is accessible,relevant,timely,reliable,verifiable,complete,and understandable.Information is of value when the benefits received from using or acting upon it outweighs the cost to produce the information.
Q3) Define an accounting information system.
Answer: An AIS is a system that collects,records,stores,and processes data to produce information for decision makers.
To view all questions and flashcards with answers, click on the resource link above.
3
Chapter 2: Overview of Transaction Processing and Erp Systems
Available Study Resources on Quizplus for this Chatper
74 Verified Questions
74 Flashcards
Source URL: https://quizplus.com/quiz/67230
Sample Questions
Q1) Which of the following statements is false?
A) Codes should be consistent with intended use.
B) Codes should allow for growth.
C) Codes should be as simple as possible.
D) Codes should be customized for each division of an organization.
Answer: D
Q2) Describe the relationship between the general and subsidiary ledgers.
Answer: The general ledger contains summary-level information about every asset,liability,equity,revenue,and expense account in an organization.The balances in general ledger accounts form the starting point for preparation of financial statements and various other financial reports.A subsidiary ledger account provides support for any general ledger account for which individual subaccounts (for example,accounts receivable,accounts payable,inventory,and fixed assets)are required.The subsidiary ledger records and maintains the detail-level information by having a separate record for each customer,vendor,inventory item,or fixed asset.The sum of the subsidiary ledger balances should equal the balance in the general ledger account.A general ledger account that corresponds to a subsidiary ledger account is known as a control account.
To view all questions and flashcards with answers, click on the resource link above.
Page 4
Chapter 3: Systems Documentation Techniques
Available Study Resources on Quizplus for this Chatper
83 Verified Questions
83 Flashcards
Source URL: https://quizplus.com/quiz/67226
Sample Questions
Q1) In preparing a DFD,when data are transformed through a process,the symbol used should be
A) a circle.
B) an arrow.
C) a square.
D) two horizontal lines.
Answer: A
Q2) In a data flow diagram of the customer payment process,"update receivables" will appear above or in
A) a square.
B) a circle.
C) two horizontal lines.
D) none of the above
Answer: B
Q3) Most processes on a DFD can be identified by A) data in-flows only.
B) data out-flows only.
C) data flows both into or out of a process.
D) always being followed by a data store.
Answer: C
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Relational Databases
Available Study Resources on Quizplus for this Chatper
80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/67225
Sample Questions
Q1) In a well-structured relational database,
A) every table must be related to at least one other table.
B) every table must be related to all other tables.
C) one table must be related to at least one other table.
D) one table must be related to all other tables.
Q2) In a relational database,requiring that every record in a table have a unique identifier is called the A) entity integrity rule. B) referential integrity rule.
C) unique primary key rule.
D) foreign key rule.
Q3) Chagall Curtain Company is changing from a file-oriented system to a relational database system.Design at least three tables that would be needed to capture data for a sales transaction.Each table should include a primary key,three non-key attributes,and foreign keys as necessary.Make up data values for two records within each table.
Q4) Discuss redundancy as it applies to database design.
Q5) Explain the difference between file-oriented transaction processing systems and relational database systems.Discuss the advantages and disadvantages of each system.
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Computer Fraud
Available Study Resources on Quizplus for this Chatper
46 Verified Questions
46 Flashcards
Source URL: https://quizplus.com/quiz/67224
Sample Questions
Q1) Perpetrators of theft of company assets typically exhibit all the following characteristics except that they
A) attempt to return or pay back stolen amounts soon after the initial theft, but find they are unable to make full restitution.
B) use trickery or lies to gain the confidence and trust of others at the organization they defraud.
C) become bolder and more greedy the longer the theft remains undetected.
D) begin to rely on stolen amounts as part of their income.
Q2) What are some of the distinguishing characteristics of fraud perpetrators?
Q3) Opportunity to commit fraud is comprised of three stages.The stage that often takes most time and effort would include
A) stealing inventory from the warehouse.
B) selling stolen inventory to get cash.
C) lapping accounts receivable.
D) creating false journal entries to overstate revenue.
Q4) What are the actions recommended by the Treadway Commission to reduce the possibility of fraudulent financial reporting?
Q5) Describe two kinds of fraud.
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Computer Fraud and Abuse Techniques
Available Study Resources on Quizplus for this Chatper
45 Verified Questions
45 Flashcards
Source URL: https://quizplus.com/quiz/67223
Sample Questions
Q1) The deceptive method by which a perpetrator gains access to the system by pretending to be an authorized user is called
A) cracking.
B) masquerading.
C) hacking.
D) superzapping.
Q2) A fraud technique that slices off tiny amounts from many projects is called the ________ technique.
A) Trojan horse
B) round down
C) salami
D) trap door
Q3) Which of the following is not a method of identify theft?
A) Scavenging
B) Phishing
C) Shoulder surfing
D) Phreaking
Q4) Describe at least four social engineering techniques.
Q5) Describe at least six computer attacks and abuse techniques.
Q6) How can a system be protected from viruses?
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Control and Accounting Information Systems
Available Study Resources on Quizplus for this Chatper
96 Verified Questions
96 Flashcards
Source URL: https://quizplus.com/quiz/67222
Sample Questions
Q1) Which of the following is a control related to design and use of documents and records?
A) Sequentially prenumbering sales invoices
B) Comparing physical inventory counts with perpetual inventory records
C) Reconciling the bank statement to the general ledger
D) Locking blank checks in a drawer or safe
Q2) Which of the following is an example of a preventive control?
A) approving customer credit prior to approving a sales order
B) reconciling the bank statement to the cash control account
C) counting inventory on hand and comparing counts to the perpetual inventory records
D) maintaining frequent backup records to prevent loss of data
Q3) According to the ERM,high level goals that are aligned with and support the company's mission are
A) compliance objectives.
B) operations objectives.
C) reporting objectives.
D) strategic objectives.
Q4) Discuss the internal environment and identify the elements that comprise the internal environment.
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Information Systems Controls for System
Reliability Part 1: Information Security
Available Study Resources on Quizplus for this Chatper
53 Verified Questions
53 Flashcards
Source URL: https://quizplus.com/quiz/67221
Sample Questions
Q1) Describe four requirements of effective passwords .
Q2) The process of turning off unnecessary features in the system is known as
A) deep packet inspection.
B) hardening.
C) intrusion detection.
D) war dialing.
Q3) Which of the following is not one of the essential criteria for successfully implementing each of the principles that contribute to systems reliability,as discussed in the Trust Services Framework?
A) Developing and documenting policies
B) Effectively communicating policies to all outsiders
C) Designing and employing appropriate control procedures to implement policies
D) Monitoring the system and taking corrective action to maintain compliance with policies
Q4) Identify three ways users can be authenticated and give an example of each.
Q5) This creates logs of network traffic that was permitted to pass the firewall.
A) Intrusion detection system
B) Log analysis
C) Penetration test
D) Vulnerability scan
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Information Systems Controls for Systems
Reliability Part 2: Confidentiality and Privacy
Available Study Resources on Quizplus for this Chatper
24 Verified Questions
24 Flashcards
Source URL: https://quizplus.com/quiz/67220
Sample Questions
Q1) Encryption has a remarkably long and varied history.The invention of writing was apparently soon followed by a desire to conceal messages.One of the earliest methods,attributed to an ancient Roman emperor,was the simple substitution of numbers for letters,for example A = 1,B = 2,etc.This is an example of A) a hashing algorithm.
B) symmetric key encryption.
C) asymmetric key encryption.
D) a public key.
Q2) Describe some steps you can take to minimize your risk of identify theft.
Q3) The system and processes used to issue and manage asymmetric keys and digital certificates are known as
A) asymmetric encryption.
B) certificate authority.
C) digital signature.
D) public key infrastructure.
Q4) Describe symmetric encryption and identify three limitations.
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Information Systems Controls for Systems
Reliability Part 3: Processing Integrity and Availability
Available Study Resources on Quizplus for this Chatper
63 Verified Questions
63 Flashcards
Source URL: https://quizplus.com/quiz/67240
Sample Questions
Q1) The accounting department at Synergy Hydroelectric records an average of 12,500 transactions per hour.By cost-benefit analysis,managers have concluded that the maximum acceptable loss of data in the event of a system failure is 25,000 transactions.If the firm's recovery time objective is 120 minutes,then the worst case recovery time objective is
A) 1 hour
B) 2 hours
C) 3 hours
D) 4 hours
Q2) ________ involves copying only the data items that have changed since the last partial backup.
A) Archive
B) Cloud computing
C) Differential backup
D) Incremental backup
Q3) Which of the following is not an objective of a disaster recovery plan?
A) Minimize the extent of the disruption, damage or loss.
B) Permanently establish an alternative means of processing information.
C) Resume normal operations as soon as possible.
D) Train employees for emergency operations.
Page 12
To view all questions and flashcards with answers, click on the resource link above.
Chapter 11: Auditing Computer-Based Information Systems
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/67239
Sample Questions
Q1) The ________ audit is concerned with the economical and efficient use of resources and the accomplishment of established goals and objectives.
A) financial
B) informational
C) information systems
D) operational
Q2) An auditor manually calculates accumulated depreciation on a delivery van and compares her calculation with accounting records.This is an example collecting audit evidence by
A) confirmation.
B) reperformance.
C) vouching.
D) analytical review.
Q3) Auditing involves the
A) collection, review, and documentation of audit evidence.
B) planning and verification of economic events.
C) collection of audit evidence and approval of economic events.
D) testing, documentation, and certification of audit evidence.
Q4) Explain the differences between each type of audit risk.
Q5) Describe the disadvantages of test data processing.
Page 13
To view all questions and flashcards with answers, click on the resource link above.
Chapter 12: The Revenue Cycle: Sales to Cash Collections
Available Study Resources on Quizplus for this Chatper
81 Verified Questions
81 Flashcards
Source URL: https://quizplus.com/quiz/67238
Sample Questions
Q1) In organizations with at least basic segregation of duties,the credit manager reports to the ________ and the treasurer reports to the ________.
A) controller; vice president of finance
B) treasurer; controller
C) marketing manager; vice president of finance
D) treasurer; vice president of finance
Q2) Sad Clown Pajamas is an Internet-based wholesaler.The manager of Callow Youth Clothing received an order from Sad Clown and found that the wrong product had been shipped.He repackaged the order and sent it back for a refund.When Sad Clown Pajamas received the returned product,they mailed a ______ to Callow Youth Clothing's manager.
A) packing slip
B) letter requesting an explanation
C) remittance advice
D) credit memo
Q3) Which of the following is not a basic activity of the revenue cycle?
A) sales order entry
B) shipping
C) receiving
D) billing
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: The Expenditure Cycle: Purchasing to Cash Disbursements
Available Study Resources on Quizplus for this Chatper
83 Verified Questions
83 Flashcards
Source URL: https://quizplus.com/quiz/67237
Sample Questions
Q1) What is the best control to mitigate the threat of paying prices that are too high for goods ordered?
A) require the receiving department to verify the existence of a valid purchase order
B) use only approved suppliers and solicit competitive bids
C) only pay invoices that are supported by the original voucher package
D) use bar-code technology to eliminate data entry errors
Q2) The need to place an order for inventory is specified by the A) company inventory policies.
B) economic order quantity.
C) stockout point.
D) reorder point.
Q3) A surprise count of an imprest petty cash fund should find the total of ________ equal to the amount authorized for the fund.
A) cash and credit memos
B) cash and vouchers
C) cash
D) cash and checks
Q4) Explain what is meant by the expenditure cycle as a "mirror image" of the revenue cycle.
Page 15
To view all questions and flashcards with answers, click on the resource link above.
Chapter 14: The Production Cycle
Available Study Resources on Quizplus for this Chatper
68 Verified Questions
68 Flashcards
Source URL: https://quizplus.com/quiz/67236
Sample Questions
Q1) Dolly Salem owns and operates a bakery in Charleston,South Carolina.Each morning she prepares a list that describes the quantity and variety of cakes and cookies that will be prepared during the day.This list is an example of a(an)
A) bill of materials.
B) operations list.
C) production order.
D) materials requisition.
Q2) Describe five threats in the production cycle and the applicable control procedures used to mitigate each threat.
Q3) Wee Bee Trucking determines the cost per delivery by averaging total cost over number of deliveries.This is an example of ________ costing.
A) job-order
B) unit-based
C) activity-based
D) process
Q4) What types of data are accumulated by cost accounting? What is the accountant's role in cost accounting?
Q5) Identify and discuss the two common methods of production planning.
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: The Human Resources Management and Payroll Cycle
Available Study Resources on Quizplus for this Chatper
58 Verified Questions
58 Flashcards
Source URL: https://quizplus.com/quiz/67235
Sample Questions
Q1) Payroll deductions fall into the broad categories of ________ and ________.
A) payroll tax withholdings; voluntary deductions
B) unemployment; social security taxes
C) unemployment taxes; income taxes
D) voluntary deductions; income taxes
Q2) All of the following are controls that should be implemented in a payroll process,except
A) supervisors distribute paychecks since they should know all employees in their department.
B) someone independent of the payroll process should reconcile the payroll bank account.
C) sequential numbering of paychecks and accounting for the numbers.
D) restrict access to blank payroll checks and documents.
Q3) Which type of payroll report lists the voluntary deductions for each employee?
A) payroll register
B) deduction register
C) earnings statement
D) federal W-4 form
Q4) Describe benefits and threats of incentive and bonus programs.
Q5) Describe the basic activities in an HRM/payroll cycle.
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 16: General Ledger and Reporting System
Available Study Resources on Quizplus for this Chatper
57 Verified Questions
57 Flashcards
Source URL: https://quizplus.com/quiz/67234
Sample Questions
Q1) The operating budget
A) compares estimated cash flows from operations with planned expenditures.
B) shows cash inflows and outflows for each capital project.
C) depicts planned revenues and expenditures for each organizational unit.
D) is used to plan for the purchase and retirement of property, plant, and equipment.
Q2) Depreciation expense and bad debt expense are examples of which type of adjusting journal entry?
A) deferrals
B) accruals
C) revaluations
D) estimates
Q3) Concerning XBRL,which of the following statements is not true?
A) XBRL is a variant of XML.
B) XBRL is specifically designed for use in communicating the content of financial data.
C) XBRL creates unique tags for each data item.
D) XBRL's adoption will require accountants and systems professionals tag data for their clients.
Q4) Discuss the value and role of budgets as managerial reports.
To view all questions and flashcards with answers, click on the resource link above. Page 18
Chapter 17: The Rea Data Model
Available Study Resources on Quizplus for this Chatper
61 Verified Questions
61 Flashcards
Source URL: https://quizplus.com/quiz/67233
Sample Questions
Q1) Developing an REA diagram for a specific transaction cycle begins by identifying A) relevant events.
B) agents involved.
C) resources affected.
D) relationship cardinalities.
Q2) Define minimum and maximum cardinalities.
Q3) Which of the following is false about cardinalities?
A) Cardinalities describe the nature of the relationship between two entities.
B) No universal standard exists for representing information about cardinalities in REA diagrams.
C) The minimum cardinality can be zero or one.
D) The maximum cardinality can be zero, one, or many.
Q4) Which of the following is not one of the rules in creating an REA data model?
A) Each event is linked to at least one resource that it affects.
B) Each event is linked to at least one other event.
C) Each event is linked to at least two participating agents.
D) All of the above are important rules.
Q5) Explain specifically what is meant by the following statement,"Accountants can and should participate in all stages of the database design process."
To view all questions and flashcards with answers, click on the resource link above. Page 19
Chapter 18: Implementing an Rea Model in a Relational Database
Available Study Resources on Quizplus for this Chatper
68 Verified Questions
68 Flashcards
Source URL: https://quizplus.com/quiz/67232
Sample Questions
Q1) Cosgrove Art & Antiques sells unique art and antiques exclusively at antique shows.Cosgrove purchases inventory from individuals and other dealers at garage sales,flea markets,antique malls,and estate sales.Each time Cosgrove makes a purchase,she records the person's name,address,date,specific items purchased and price paid,and total amount spent.Later at home,Cosgrove cleans,researches and prices the inventory items.She assigns an inventory number to each item and records the "asking" price.Cosgrove buys price tags and display supplies from a company that sells at flea market and antique shows.All inventory and supplies purchases are paid immediately with cash,or with checks from a bank account in the business' name,to which sales are also deposited.Several times a year Cosgrove rents a booth at an antique show.A deposit is always required,with the balance due at the start of the show.Cosgrove records the deposit and final payment,along with the show organizer's name and address,in the same worksheet on which purchases of inventory and supplies are recorded. Which of the following would be an attribute in the table for booth rental?
A) Organizer's name
B) Deposit paid
C) Balance paid
D) Organizer's address
Q2) Explain the five rules for drawing integrated REA diagrams.
To view all questions and flashcards with answers, click on the resource link above. Page 20
Chapter 19: Special Topics in Rea Modeling
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/67231
Sample Questions
Q1) Explicitly identifying the different employees who participate in each event by their job functions is helpful when verifying
A) internal controls.
B) job descriptions.
C) proper supervision.
D) segregation of duties.
Q2) Since the same inventory items may be stored in several different warehouses,the maximum cardinality from Inventory to Warehouse is most likely ________.
A) 0
B) N
C) 1
D) determined by the number of warehouses compared to the number of inventory items
Q3) Supplier number is least likely to be a foreign key in:
A) Order Inventory
B) Disburse Cash
C) Receive Inventory
D) Warehouse
Q4) Why might an REA diagram show relationships between agents?
To view all questions and flashcards with answers, click on the resource link above. Page 21
Chapter 20: Introduction to Systems Development Systems Analysis
Available Study Resources on Quizplus for this Chatper
90 Verified Questions
90 Flashcards
Source URL: https://quizplus.com/quiz/67229
Sample Questions
Q1) Identify and describe the five types of feasibility that must be considered throughout the system development life cycle.
Q2) Major resistance to change takes one of several forms.What is the name of the form of resistance where the new system is blamed for any and every unpleasant occurrence?
A) aggression
B) avoidance
C) procrastination
D) projection
Q3) Which group of individuals listed below can be the most effective in generating employee support and encouraging the development and acceptance of an AIS project?
A) accountants
B) information systems steering committee
C) management
D) project development team
Q4) Describe economic feasibility analysis.What techniques are used in economic feasibility analysis?
Page 22
Q5) Describe the importance of the master plan in systems development.
Q6) Who makes up the project development team and what is the team's purpose?
To view all questions and flashcards with answers, click on the resource link above.
Page 23
Chapter 21: Ais Development Strategies
Available Study Resources on Quizplus for this Chatper
73 Verified Questions
73 Flashcards
Source URL: https://quizplus.com/quiz/67228
Sample Questions
Q1) What are the advantages and disadvantages of custom software and of canned software for meeting application software needs?
Q2) When canned software is used for systems acquisition,the maintenance aspect of the operations and maintenance phase of the SDLC
A) is more costly.
B) is not necessary and is eliminated.
C) is usually the responsibility of the vendor.
D) requires trained personnel.
Q3) Which of the following is not a guideline used to select an outside developer for custom system?
A) The outside developer should have an in-depth understanding of how the company conducts its business.
B) The outside developer should have experience in the company's industry.
C) The outside developer should possess a good understanding of business in general.
D) The outside developer should be able to complete the system independently, without requiring frequent contact to ask questions.
Q4) Discuss how an organization can develop custom software.
To view all questions and flashcards with answers, click on the resource link above.
24
Chapter 22: Systems Design, implementation, and Operation
Available Study Resources on Quizplus for this Chatper
70 Verified Questions
70 Flashcards
Source URL: https://quizplus.com/quiz/67227
Sample Questions
Q1) What type of system test uses copies of real transaction and file records?
A) acceptance test
B) debugging
C) process test data
D) walk-through
Q2) Acceptance tests involve
A) managers observing the operation of the system by "walking through" the IT department.
B) processing hypothetical data that are designed to identify errors in the system.
C) processing copies of real transactions in order to determine whether or not the system meets requirements.
D) a thorough review of the procedures and program logic of the system.
Q3) Which factor is not investigated during the post-implementation review?
A) accuracy
B) benefits
C) completion
D) costs
Q4) Describe at least four considerations during controls design.
Page 25
Q5) Describe the approaches to system conversion.
To view all questions and flashcards with answers, click on the resource link above.