Information Systems Control and Audit
Test Questions
Course Introduction
Information Systems Control and Audit focuses on the principles, methodologies, and best practices used to ensure the integrity, security, and reliability of information systems within organizations. The course covers internal controls, risk management, information systems auditing standards, and the implementation of effective audit strategies. Students learn how to evaluate control frameworks, perform risk assessments, and use audit tools to assess compliance with regulatory requirements. Emphasis is placed on understanding the critical role of information systems in business, identifying vulnerabilities, and safeguarding assets against threats through proper control and audit processes.
Recommended Textbook
Information Technology Auditing 4th Edition by James Hall
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12 Chapters
1122 Verified Questions
1122 Flashcards
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Page 2
Chapter 1: Auditing and Internal Control
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100 Verified Questions
100 Flashcards
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Sample Questions
Q1) Which of the following is true?
A) In the CBIS environment, auditors gather evidence relating only to the contents of databases, not the reliability of the computer system.
B) Conducting an audit is a systematic and logical process that applies to all forms of information systems.
C) Substantive tests establish whether internal controls are functioning properly.
D) IT auditors prepare the audit report if the system is computerized.
Answer: B
Q2) A strong internal control system will reduce the amount of substantive testing that must be performed.
A)True
B)False
Answer: True
Q3) What are the objectives of application controls?
Answer: The objectives of application controls are to ensure the validity, completeness, and accuracy financial transactions.
Q4) Locking petty cash in a safe is an example of __________________________.
Answer: access controls
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3
Chapter 2: Auditing IT Governance Controls
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Sample Questions
Q1) Certain duties that are deemed incompatible in a manual system may be combined in a computer-based information system environment.
A)True
B)False
Answer: True
Q2) The major disadvantage of an empty shell solution as a second site backup is
A) the host site may be unwilling to disrupt its processing needs to process the critical applications of the disaster stricken company
B) recovery depends on the availability of necessary computer hardware
C) maintenance of excess hardware capacity
D) the control of the shell site is an administrative drain on the company
Answer: B
Q3) An advantage of a recovery operations center is that
A) this is an inexpensive solution
B) the initial recovery period is very quick
C) the company has sole control over the administration of the center
D) none of the above are advantages of the recovery operations center
Answer: B
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4
Chapter 3: Auditing Operating Systems and Networks
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105 Verified Questions
105 Flashcards
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Sample Questions
Q1) Define and contrast digital certificate and digital signature.
Answer: A digital certificate is like an electronic identification card that is used in conjunction with a public key encryption system to verify the authenticity of the message sender. These are issued by certification authorities.
A digital signature is an electronic authentication technique that ensures that the transmitted message originated with the authorized sender and that it was not tampered with after the signature was applied.
Q2) A distributed denial of service (DDoS) attack
A) is more intensive that a Dos attack because it emanates from single source
B) may take the form of either a SYN flood or smurf attack
C) is so named because it effects many victims simultaneously, which are distributed across the internet
D) turns the target victim's computers into zombies that are unable to access the Internet
Answer: B
Q3) The bus topology connects the nodes in parallel.
A)True
B)False
Answer: True
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Page 5
Chapter 4: Auditing Database Systems
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100 Flashcards
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Sample Questions
Q1) The database approach to data management is sometimes called the flat file approach.
A)True
B)False
Q2) The database management system provides a controlled environment for accessing the database.
A)True
B)False
Q3) All of the following are basic data management tasks except
A) data deletion
B) data storage
C) data attribution
D) data retrieval
Q4) Data access methods allow records to be located, stored and retrieved. .
A)True
B)False
Q5) Discuss the key factors to consider in determining how to partition a corporate database.
Q6) What flat-file data management problems are solved as a result of using the database concept?
Page 6
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Chapter 5: Systems Development and Program Change
Activities
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Sample Questions
Q1) Outline the five controllable activities that relate to new systems development
Q2) The payback method is often more useful than the net present value method for evaluating systems projects because the effective lives of information system tend to be short and shorter payback projects are often desirable.
A)True
B)False
Q3) Explain why accountants are interested in the legal feasibility of a new systems project.
Q4) Which technique is least likely to be used to quantify intangible benefits?
A) opinion surveys
B) simulation models
C) professional judgment
D) review of accounting transaction data
Q5) Describe a test of controls that would provide evidence that only authorized program maintenance is occurring.
Q6) Maintenance access to systems increases the risk that logic will be corrupted either by the accident or intent to defraud.
A)True
B)False
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Chapter 6: Transaction Processing and Financial Reporting
Systems Overview
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98 Verified Questions
98 Flashcards
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Sample Questions
Q1) The order of the entries made in the general journal is by A) date
B) account number
C) user
D) customer number
Q2) Name four documentation techniques.
Q3) The coding scheme most appropriate for a chart of accounts is
A) sequential code
B) block code
C) group code
D) mnemonic code
Q4) What is XML?
Q5) Sequential storage means
A) data is stored on tape
B) access is achieved through an index
C) access is direct
D) reading record 100 requires first reading records 1 to 99
Q6) Batch processing systems can store data on direct access storage devices.
A)True
B)False Page 8
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Page 9
Chapter 7: Computer Assisted Audit Tools and Techniques
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Sample Questions
Q1) Incorrectly recording sales order number 123456 as 124356 is an example of a transcription error
A)True
B)False
Q2) A reasonableness check determines if a value in one field is reasonable when considered along with data in other fields of the record
A)True
B)False
Q3) What control issue is related to reentering corrected error records into a batch processing system? What are the two methods for doing this?
Q4) The results of a parallel simulation are compared to the results of a production run in order to judge the quality of the application processes and controls.
A)True
B)False
Q5) Discuss what is involved in creating test data.
Q6) What are the three broad categories of application controls?
Q7) How does privacy relate to output control?
Q8) Describe two types of transposition errors.
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Chapter 8: Data Structures and Caatts for Data Extraction
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Sample Questions
Q1) View modeling includes
A) constructing a data model showing entity associations.
B) constructing the physical database.
C) preparing the user views.
D) all of the above.
Q2) Explain the following three types of pointers: physical address pointer, relative address pointer, and logical key pointer.
Q3) VSAM file structures are most effective where rapid access to individual records is a priority need.
A)True
B)False
Q4) Pointers are used
A) to link records within a file.
B) to link records between files.
C) to identify records stored in overflow.
D) all of the above.
Q5) What is the update anomaly?
Q6) Explain the purpose of an ER diagram in database design.
Q7) What is repeating group data?
Q8) How does the database approach solve the problem of data redundancy?
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Chapter 9: Auditing the Revenue Cycle
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Sample Questions
Q1) Which control does not help to ensure that accurate records are kept of customer accounts and inventory?
A) reconcile accounts receivable control to accounts receivable subsidiary
B) authorize credit
C) segregate custody of inventory from record keeping
D) segregate record keeping duties of general ledger from accounts receivable
Q2) The shipping notice
A) is mailed to the customer
B) is a formal contract between the seller and the shipping company
C) is always prepared by the shipping clerk
D) informs the billing department of the quantities shipped
Q3) Which department prepares the bill of lading?
A) Sales
B) Warehouse
C) Shipping
D) Credit
Q4) What are the key segregation of duties related to computer programs that process accounting transactions.
Q5) State two specific functions or jobs that should be segregated in the sales processing system.
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Chapter 10: Auditing the Expenditure Cycle
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Sample Questions
Q1) What is(are) the purpose(s) of maintaining a valid vendor file?
Q2) The purpose of the purchase requisition is to
A) order goods from vendors
B) record receipt of goods from vendors
C) authorize the purchasing department to order goods
D) bill for goods delivered
Q3) Outline the key steps taken in the purchasing system.
Q4) If accounts payable receives an invoice directly from the supplier it needs to be reconciled with the purchase order and receiving report.
A)True
B)False
Q5) The inventory procurement process begins with the purchasing clerk preparing a purchase order.
A)True
B)False
Q6) The open purchase order file in the purchasing department is used to determine
A) the quality of items a vendor ships
B) the best vendor for a specific item
C) the orders that have not been received
D) the quantity of items received
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Chapter 11: Enterprise Resource Planning Systems
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Sample Questions
Q1) Describe the three-tier client server model.
Q2) RBAC assigns access permissions to the role an individual plays in the organization rather than directly to the individual.
A)True
B)False
Q3) Which of the following statements is least likely to be true about a data warehouse?
A) It is constructed for quick searching and ad hoc queries.
B) It was an original part of all ERP systems.
C) It contains data that are normally extracted periodically from the operating databases.
D) It may be deployed by organizations that have not implemented an ERP.
Q4) What is the fundamental concept behind the rule of least access? Explain why this is a potential problem in an ERP environment.
Q5) Data entered into the data warehouse must be normalized. A)True B)False
Q6) What are the basic stages of the data warehousing process?
Q7) What is the "Big-Bang" approach?
Page 14
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Chapter 12: Business Ethics, Fraud, and Fraud Detection
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Sample Questions
Q1) What is scavenging?
Q2) A shell company fraud involves
A) stealing cash from an organization before it is recorded.
B) stealing cash from an organization after it has been recorded.
C) manufacturing false purchase orders, receiving reports, and invoices.
D) a clerk paying a vendor twice for the same products and cashing the reimbursement check issued by the vendor.
Q3) When considering computer ethics, what are some of the environmental issues to consider?
Q4) 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
Q5) Four principal types of corruption are discussed. Name all four and explain at least two.
Q6) Explain the problems associated with Questionable Executive Compensation Schemes
Page 15
Q7) Explain the problems associated with lack of auditor independence.
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