Computer Auditing Practice Exam
Course Introduction
Computer Auditing explores the principles, methodologies, and tools used to evaluate and ensure the integrity, reliability, and security of computerized information systems within organizations. The course covers topics such as audit planning, risk assessment, control frameworks, computer-assisted audit techniques (CAATs), and the legal and ethical considerations in auditing IT environments. Students learn to assess internal controls, identify vulnerabilities, and recommend improvements to protect digital assets and support compliance with relevant standards and regulations. The course combines theoretical concepts with practical applications through case studies and hands-on exercises, preparing students for roles in IT auditing and assurance.
Recommended Textbook
Information Technology Auditing 4th Edition by James Hall
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12 Chapters
1122 Verified Questions
1122 Flashcards
Source URL: https://quizplus.com/study-set/1104 Page 2
Chapter 1: Auditing and Internal Control
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100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/21726
Sample Questions
Q1) Internal auditors assist external auditors with financial audits to A) reduce audit fees
B) ensure independence
C) represent the interests of management
D) the statement is not true; internal auditors are not permitted to assist external auditors with financial audits
Answer: A
Q2) What are the objectives of application controls?
Answer: The objectives of application controls are to ensure the validity, completeness, and accuracy financial transactions.
Q3) All of the following are steps in an IT audit except A) substantive testing
B) tests of controls
C) post-audit testing
D) audit planning
Answer: C
Q4) What are the five internal control components described in the COSO framework
Answer: the control environment, risk assessment, information and communication, monitoring, and control activities
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Chapter 2: Auditing IT Governance Controls
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91 Verified Questions
91 Flashcards
Source URL: https://quizplus.com/quiz/21727
Sample Questions
Q1) An advantage of distributed data processing is that individual end user groups set specific IT standards without concern for the broader corporate needs.
A)True
B)False
Answer: False
Q2) Transaction cost economics (TCE) theory suggests that firms should outsource specific non core IT assets
A)True
B)False
Answer: False
Q3) RAID is the use of parallel disks that contain redundant elements of data and applications.
A)True
B)False Answer: True
Q4) The database administrator should be separated from systems development.
A)True
B)False Answer: True
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Chapter 3: Auditing Operating Systems and Networks
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105 Verified Questions
105 Flashcards
Source URL: https://quizplus.com/quiz/21728
Sample Questions
Q1) FTP
A) is the document format used to produce Web pages.
B) controls Web browsers that access the Web.
C) is used to connect to Usenet groups on the Internet
D) is used to transfer text files, programs, spreadsheets, and databases across the Internet.
E) is a low-level encryption scheme used to secure transmissions in higher-level () format.
Answer: D
Q2) Firewalls are
A) special materials used to insulate computer facilities
B) a system that enforces access control between two networks
C) special software used to screen Internet access
D) none of the above
Answer: B
Q3) In a telecommunications environment, line errors can be detected by using an echo check.
A)True
B)False
Answer: True
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Chapter 4: Auditing Database Systems
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100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/21729
Sample Questions
Q1) Which characteristic is not associated with the database approach to data management?
A) the ability to process data without the help of a programmer
B) the ability to control access to the data
C) constant production of backups
D) the inability to determine what data is available
Q2) The data manipulation language
A) defines the database to the database management system
B) transfers data to the buffer area for manipulation
C) enables application programs to interact with and manipulate the database
D) describes every data element in the database.
Q3) How does the database approach solve the problem of data redundancy?
Q4) Time stamping is a control that is used to ensure database partitioning.
A)True
B)False
Q5) Data normalization groups data attributes into tables in accordance with specific design objectives.
A)True
B)False
Q6) What is a database authorization table?
Page 6
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Chapter 5: Systems Development and Program Change
Activities
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94 Verified Questions
94 Flashcards
Source URL: https://quizplus.com/quiz/21730
Sample Questions
Q1) A tangible benefit
A) can be measured and expressed in financial terms
B) might increase revenues
C) might decrease costs
D) all of the above
Q2) Source program library controls should prevent and detect unauthorized access to application programs.
A)True
B)False
Q3) All of the steps in the Systems Development Life Cycle apply to software that is developed in-house and to commercial software.
A)True
B)False
Q4) Project planning includes all of the following except
A) specifying system objectives
B) preparing a formal project proposal
C) selecting hardware vendors
D) producing a project schedule
Q5) What are two purposes of the systems project proposal?
Q6) What are program version numbers and how are the used? Page 7
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Page 8
Chapter 6: Transaction Processing and Financial Reporting
Systems Overview
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98 Verified Questions
98 Flashcards
Source URL: https://quizplus.com/quiz/21731
Sample Questions
Q1) Which system is not part of the expenditure cycle?
A) cash disbursements
B) payroll
C) production planning/control
D) purchases/accounts payable
Q2) Individuals with access authority to general ledger accounts should not prepare journal vouchers.
A)True
B)False
Q3) Describe the key activities in the revenue, conversion, and expenditure cycles.
Q4) Processing more transactions at a lower unit cost makes batch processing more efficient than real-time systems.
A)True
B)False
Q5) In one sentence, what does updating a master file record involve?
Q6) What are the subsystems of the revenue cycle?
Q7) Only four symbols are used in data flow diagrams. What are they?
Q8) Real time processing is used for routine transactions in large numbers.
A)True
B)False Page 9
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Page 10
Chapter 7: Computer Assisted Audit Tools and Techniques
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82 Verified Questions
82 Flashcards
Source URL: https://quizplus.com/quiz/21732
Sample Questions
Q1) Name four input controls and describe what they test?
Q2) Explain the three methods used to correct errors in data entry.
Q3) What are the three categories of processing control?
Q4) Which test is not an example of a white box test?
A) determining the fair value of inventory
B) ensuring that passwords are valid
C) verifying that all pay rates are within a specified range
D) reconciling control totals
Q5) 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
Q6) A check digit is a method of detecting data coding errors.
A)True
B)False
Page 11
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Chapter 8: Data Structures and Caatts for Data Extraction
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81 Verified Questions
81 Flashcards
Source URL: https://quizplus.com/quiz/21733
Sample Questions
Q1) Give two limitations of the hierarchical database model?
Q2) In a relational database
A) the user's view of the physical database is the same as the physical database
B) users perceive that they are manipulating a single table
C) a virtual table exists in the form of rows and columns of a table stored on the disk
D) a programming language (COBOL) is used to create a user's view of the database
Q3) 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
Q4) Which statement is true about a hashing structure?
A) The same address could be calculated for two records.
B) Storage space is used efficiently.
C) Records cannot be accessed rapidly.
D) A separate index is required.
Q5) Explain the three types of anomalies associated with database tables that have not been normalized.
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Chapter 9: Auditing the Revenue Cycle
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97 Verified Questions
97 Flashcards
Source URL: https://quizplus.com/quiz/21734
Sample Questions
Q1) Another name for the stock release form is the picking ticket.
A)True
B)False
Q2) The customer open order file is used to
A) respond to customer queries
B) fill the customer order
C) ship the customer order
D) authorize customer credit
Q3) A customer payment of $247 was correctly posted in the general ledger but was recorded as $274 in the customer's account receivable. Describe a specific internal control procedure that would detect this error.
Q4) Copies of the sales order can be used for all of the following except
A) purchase order
B) credit authorization
C) shipping notice
D) packing slip
Q5) What are the key segregation of duties related to computer programs that process accounting transactions.
Q6) Give three examples of Access Control in a Point-of-Sale (POS) system.
Q7) How is independent verification carried out in a manual revenue system?
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Chapter 10: Auditing the Expenditure Cycle
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100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/21735
Sample Questions
Q1) The financial value of a purchase is determined by reviewing the A) packing slip
B) purchase requisition
C) receiving report
D) supplier's invoice
Q2) Differentiate between a purchase requisition and a purchase order.
Q3) Which department is responsible for approving changes in pay rates for employees?
A) payroll
B) treasurer
C) personnel
D) cash disbursements
Q4) How does a voucher payable system work? What documents are reconciled? Who prepares the voucher? How is the A/P balance determined? How does the voucher payable system improve control over cash?
Q5) What is(are) the purpose(s) of maintaining a valid vendor file?
Q6) How does the procedure for determining inventory requirements differ between a basic batch processing system and batch processing with real-time data input of sales and receipts of inventory? What about for the procedures used by the receiving department?
14
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Chapter 11: Enterprise Resource Planning Systems
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90 Verified Questions
90 Flashcards
Source URL: https://quizplus.com/quiz/21736
Sample Questions
Q1) Why does data need to be "cleansed"?
Q2) On-line transaction processing programs
A) are bolt-on programs used with commercially available ERSs.
B) are available in two models-two-tier and three-tier.
C) handle large numbers of relatively simple transactions.
D) allow users to analyze complex data relationships.
Q3) An access control list specifies the user-ID, the resources available to the user, and the level of permission granted.
A)True
B)False
Q4) Organizations using ERP systems employ an internal control tool called a role.
A)True
B)False
Q5) Supply-chain management software is a type of program that supports efforts relative to moving goods from the raw material stage to the customer.
A)True
B)False
Q6) ERP implementations are at risk to extensive cost overruns. Discuss three of the more commonly experienced problems area.
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Chapter 12: Business Ethics, Fraud, and Fraud Detection
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84 Verified Questions
84 Flashcards
Source URL: https://quizplus.com/quiz/21737
Sample Questions
Q1) Name three forms of computer fraud.
Q2) In balancing the risks and benefits that are part of every ethical decision, managers receive guidance from each of the following except
A) justice
B) self interest
C) risk minimization
D) proportionality
Q3) Misappropriation of assets can involve various schemes: expense reimbursement fraud, lapping, and payroll fraud. Explain each and give an example.
Q4) The most common access point for perpetrating computer fraud is at the data collection stage.
A)True
B)False
Q5) Collusion among employees in the commission of a fraud is difficult to prevent but easy to detect.
A)True
B)False
Q6) What is the objective of SAS 99?
Q7) Explain the shell company fraud.
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