Fraud Examination and IT Audit Exam Review
Course Introduction
Fraud Examination and IT Audit explores the principles and practices involved in detecting, investigating, and preventing fraud within organizations, with a particular focus on the role of information technology. The course examines the types of occupational fraud, investigative techniques, and the legal and ethical considerations relevant to fraud examination. Students will learn how to assess internal controls, utilize IT audit tools, analyze digital evidence, and develop strategies to mitigate fraud risks in computerized environments. Through case studies and practical exercises, participants gain hands-on experience in applying forensic accounting methods and IT auditing procedures to real-world scenarios.
Recommended Textbook
Information Technology Auditing 3rd Edition by James A. Hall
Available Study Resources on Quizplus
12 Chapters
1295 Verified Questions
1295 Flashcards
Source URL: https://quizplus.com/study-set/351 Page 2
Chapter 1: Auditing and Internal Control
Available Study Resources on Quizplus for this Chatper
103 Verified Questions
103 Flashcards
Source URL: https://quizplus.com/quiz/5812
Sample Questions
Q1) The bank reconciliation uncovered a transposition error in the books.This is an example of a
A) preventive control
B) detective control
C) corrective control
D) none of the above
Answer: B
Q2) When duties cannot be segregated,the most important internal control procedure is A) supervision
B) independent verification
C) access controls
D) accounting records
Answer: A
Q3) How do the tests of controls affect substantive tests?
Answer: Tests of controls are used by the auditor to measure the strength of the internal control structure.The stronger the internal controls,the lower the control risk,and the less substantive testing the auditor must do.
Q4) Locking petty cash in a safe is an example of __________________________. Answer: access controls
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Auditing IT Governance Controls
Available Study Resources on Quizplus for this Chatper
99 Verified Questions
99 Flashcards
Source URL: https://quizplus.com/quiz/5813
Sample Questions
Q1) All of the following tests of controls will provide evidence about the adequacy of the disaster recovery plan except
A) inspection of the second site backup
B) analysis of the fire detection system at the primary site
C) review of the critical applications list
D) composition of the disaster recovery team
Answer: B
Q2) Explain how IT outsourcing can lead to loss of strategic advantage.
Answer: Alignment between IT strategy and business strategy requires a close working relationship between corporate management and IT management in the concurrent development of business and IT strategies.This,however,is difficult to accomplish when IT planning is geographically redeployed off-shore or even domestically.Further,since the financial justification for IT outsourcing depends upon the vendor achieving economies of scale,the vendor is naturally driven to toward seeking common solutions that may be used by many clients rather than creating unique solutions for each of them.This fundamental underpinning of IT outsourcing is inconsistent with the client's pursuit of strategic advantage in the marketplace.
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Security Part I: Auditing Operating Systems and Networks
Available Study Resources on Quizplus for this Chatper
143 Verified Questions
143 Flashcards
Source URL: https://quizplus.com/quiz/5814
Sample Questions
Q1) A formal log-on procedure is the operating system's last line of defense against unauthorized access.
A)True
B)False
Answer: False
Q2) Network protocols fulfill all of the following objectives except
A) facilitate physical connection between network devices
B) provide a basis for error checking and measuring network performance
C) promote compatibility among network devices
D) result in inflexible standards
Answer: D
Q3) What are the three security objectives of audit trails? Explain.
Answer: Audit trails support system security objectives in three ways.By detecting unauthorized access to the system,the audit trail protects the system from outsiders trying to breach system controls.By monitoring system performance,changes in the system may be detected.The audit trail can also contribute to reconstructing events such as system failures,security breaches,and processing errors.In addition,the ability to monitor user activity can support increased personal accountability.
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: IT Security Part II: Auditing Database Systems
Available Study Resources on Quizplus for this Chatper
101 Verified Questions
101 Flashcards
Source URL: https://quizplus.com/quiz/5815
Sample Questions
Q1) Which statement is not correct? A query language like SQL
A) is written in a fourth-generation language
B) requires user familiarity with COBOL
C) allows users to retrieve and modify data
D) reduces reliance on programmers
Q2) The __________________________ authorizes access to the database.
Q3) Subschemas are used to authorize user access privileges to specific data elements.
A)True
B)False
Q4) Explain the three views of a database.
Q5) What are four ways in which database management systems provide a controlled environment to manage user access and the data resources?
Q6) Which of the following is not a problem usually associated with the flat-file approach to data management?
A) data redundancy
B) restricting access to data to the primary user
C) data storage
D) currency of information
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Systems Development and Program Change
Activities
Available Study Resources on Quizplus for this Chatper
108 Verified Questions
108 Flashcards
Source URL: https://quizplus.com/quiz/5816
Sample Questions
Q1) The objective of systems planning is to link systems projects to the strategic objectives of the firm.
A)True
B)False
Q2) Describe a risk associated with the phased cutover procedure for data conversion.
Q3) List four types of facts that should be gathered during an analysis of a system.
Q4) Which statement is correct?
A) compiled programs are very susceptible to unauthorized modification
B) the source program library stores application programs in source code form
C) modifications are made to programs in machine code language
D) the source program library management system increases operating efficiency
Q5) Explain the role of accountants in the conceptual design stage.
Q6) What are three problems that account for most system failures?
Q7) When implementing a new system,the costs associated with transferring data from one storage medium to another is an example of
A) a recurring cost
B) a data conversion cost
C) a systems design cost
D) a programming cost
Page 7
To view all questions and flashcards with answers, click on the resource link above.
Chapter 6: Overview of Transaction Processing and Financial Reporting Systems
Available Study Resources on Quizplus for this Chatper
143 Verified Questions
143 Flashcards
Source URL: https://quizplus.com/quiz/5817
Sample Questions
Q1) The type of transaction most suitable for batch processing is
A) airline reservations
B) credit authorization
C) payroll processing
D) adjustments to perpetual inventory
Q2) With regard to an entity relationship diagram,what is an entity?
Q3) What are the three characteristics that are used to distinguish between batch and real-time systems.
Q4) When a firm wants its coding system to convey meaning without reference to any other document,it would choose
A) an alphabetic code
B) a mnemonic code
C) a group code
D) a block code
Q5) How are computer system flowcharts and program flowcharts related?
Q6) System flowcharts are often used to depict processes that are handled in batches. A)True
B)False
8
Q7) List,in order,the steps in the Financial Accounting Process.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 7: Computer-Assisted Audit Tools and Techniques
Available Study Resources on Quizplus for this Chatper
83 Verified Questions
83 Flashcards
Source URL: https://quizplus.com/quiz/5818
Sample Questions
Q1) Run-to-run control totals can be used for all of the following except A) to ensure that all data input is validated
B) to ensure that only transactions of a similar type are being processed C) to ensure the records are in sequence and are not missing
D) to ensure that no transaction is omitted
Q2) Which of the following is an example of an input error correction technique?
A) immediate correction
B) rejection of batch
C) creation of error file
D) all are examples of input error correction techniques
Q3) Explain the three methods used to correct errors in data entry.
Q4) Use of the integrated test facility poses no threat to organizational data files. A)True
B)False
Q5) Achieving batch control objectives requires grouping similar types of input transactions (such as sales orders)together in batches and then controlling the batches throughout data processing.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Data Structures and CAATTs for Data Extraction
Available Study Resources on Quizplus for this Chatper
89 Verified Questions
89 Flashcards
Source URL: https://quizplus.com/quiz/5819
Sample Questions
Q1) A table is in first normal form when it is
A) free of repeating group data
B) free of transitive dependencies
C) free of partial dependencies
D) free of update anomalies
E) none of the above
Q2) The deletion anomaly is the least important of the problems affecting unnormalized databases.
A)True
B)False
Q3) What is the relationship between a database table and a user view?
Q4) VSAM file structures are most effective where rapid access to individual records is a priority need.
A)True
B)False
Q5) The term occurrence is used to describe the number of attributes or fields pertaining to a specific entity.
A)True
B)False
Q6) Contrast embedded audit modules with generalized audit software.
Page 10
To view all questions and flashcards with answers, click on the resource link above.
Chapter 9: Auditing the Revenue Cycle
Available Study Resources on Quizplus for this Chatper
105 Verified Questions
105 Flashcards
Source URL: https://quizplus.com/quiz/5820
Sample Questions
Q1) The most effective internal control procedure to prevent or detect the creation of fictitious credit memoranda for sales returns is to
A) supervise the accounts receivable department
B) limit access to credit memoranda
C) prenumber and sequence check all credit memoranda
D) require management approval for all credit memoranda
Q2) What is automation and why is it used?
Q3) What is the role of the shipping notice?
Q4) An advantage of real-time processing of sales is
A) the cash cycle is lengthened
B) current inventory information is available
C) hard copy documents provide a permanent record of the transaction
D) data entry errors are corrected at the end of each batch
Q5) The cash receipts journal is a special journal.
A)True
B)False
Q6) State two specific functions or jobs that should be segregated in the sales processing system.
Q7) List two points in the sales processing system when authorization is required.
Q8) What function does the receiving department serve in the revenue cycle?
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Auditing the Expenditure Cycle
Available Study Resources on Quizplus for this Chatper
144 Verified Questions
144 Flashcards
Source URL: https://quizplus.com/quiz/5821
Sample Questions
Q1) The receiving department is not responsible to A) inspect shipments received
B) count items received from vendors
C) order goods from vendors
D) safeguard goods until they are transferred to the warehouse
Q2) Firms can expect that proper use of a valid vendor file will result in all of the following benefits except
A) purchasing agents will be discouraged from improperly ordering inventory from related parties
B) purchases from fictitious vendors will be detected
C) the most competitive price will be obtained
D) the risk of purchasing agents receiving kickbacks and bribes will be reduced
Q3) One reason for authorizing purchases is to enable efficient inventory management. A)True B)False
Q4) Payroll processing can be automated easily because accounting for payroll is very simple.
A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 12: Business Ethics, Fraud, and Fraud Detection
Available Study Resources on Quizplus for this Chatper
85 Verified Questions
85 Flashcards
Source URL: https://quizplus.com/quiz/5822
Sample Questions
Q1) Name three types of program fraud.
Q2) Business ethics involves
A) how managers decide on what is right in conducting business
B) how managers achieve what they decide is right for the business
C) both a and b
D) none of the above
Q3) Explain the problems associated with lack of auditor independence.
Q4) What is program fraud?
Q5) Skimming involves stealing cash from an organization after it is recorded on the organization's books and records
A)True
B)False
Q6) The fraud triangle represents a geographic area in Southeast Asia where international fraud is prevalent.
A)True
B)False
Q7) Employees should be made aware of the firm's commitment to ethics.
A)True
B)False
Q8) Explain the shell company fraud.
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 11: Enterprise Resource Planning Systems
Available Study Resources on Quizplus for this Chatper
92 Verified Questions
92 Flashcards
Source URL: https://quizplus.com/quiz/5823
Sample Questions
Q1) Define OLAP and give some examples.
Q2) Why must a data warehouse include both detail and summary data?
Q3) Why does data need to be "cleansed"?
Q4) OLAP stands for on-line application processing.
A)True
B)False
Q5) Which statements about data warehousing is not correct?
A) The data warehouse should be separate from the operational system.
B) Data cleansing is a process of transforming data into standard form.
C) Drill-down is a data-mining tool available to users of OLAP.
D) Normalization is an requirement of databases included in a data warehouse.
Q6) How does a data warehouse help the external auditor perform the audit?
Q7) 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
Q8) Describe the two-tier client server model.
Q9) Why do ERP systems need bolt-on software? Give an example.
Q10) Why does the data warehouse need to be separate from the operational Page 14
To view all questions and flashcards with answers, click on the resource link above.
Page 15