5. Which of the following is not a risk in a computerized information system (CIS) a. need for CIS experienced staff b. separation of CIS duties from accounting functions c. improved audit trail d. hardware and data vulnerability Required: choose the correct answer and Justify your answers in at least 6 sentences.

5. Which of the following is not a risk in a computerized information system (CIS) a. need for CIS experienced staff b. separation of CIS duties from accounting functions c. improved audit trail d. hardware and data vulnerability Required: choose the correct answer and Justify your answers in at least 6 sentences.

Accounting Information Systems

10th Edition

ISBN:9781337619202

Author:Hall, James A.

Publisher:Hall, James A.

Chapter16: Auditing It Controls Part Iii: Systems Development, Program Changes, And Application Auditing

Section: Chapter Questions

Problem 10MCQ

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Similar questions

Which of the following statements is most accurate? a. ERP systems are commercial software packages that are sometimes called turnkey systems because they can be implemented by the user with little or no modification. b. Substantive tests provide evidence focused on the system controls. c. Public accounting firms that provide attest services are not allowed under SOX to offer IT advisory services. d. Both small and large firms that have standardized information needs are potential customers for commercial software. e. External auditors may rely on the work of internal auditors only if they report to the controller or the CEO of the client company.
1) Which of the following statements is the most accurate? a. Data analytics can be exploratory but never confirmatory. b. Data analytics allows auditors to broaden scope of their assurance activities. c. An auditor can always rely more on IT controls than manual controls. d. Application controls can always be relied on when general controls are deemed effective.
1. 1. Working paper documentation includes the auditors’ conclusion about ______ and the basis for their conclusion. a. control risk b. control expecations 2. _____ are controls that do not rely on the client's information technology (IT) environment for their operation. a. IT general controls (ITGCs) b. Automated controls c. Computer application controls d. Manual controls 3. Assessing control risk begins with understanding entity-level controls. a. True b. False
3. Which of the following is not a risk specific to CIS environment ? a. reliance on the functioning capabilities of hardware and software. b. increased human involvement c. loss of data due to insufficient backup d. unauthorized access Required: choose the correct answer and Justify your answers in at least 6 sentences.
1. If detective controls signal error flags, why shouldn’t these types of controls automatically make a correction in the identified error? Why are corrective controls necessary? 2. Discuss the nonaccounting services that external auditors are no longer permitted to render to audit clients. 3. Discuss whether a firm with fewer employees than there are incompatible tasks should rely more heavily on general authority than specific authority. 4. According to SAS 78/COSO, the proper segregation of functions is an effective internal control procedure. Please Discuss. PLEASE NO PLAGIARSIM. THANK YOU!!
A primary advantage of using generalized audit software packages to audit the financial statements of a client that uses a computer system is that the auditor may: a.Access information stored on computer files while having a limited understanding of the client’s hardware and software features. b.Consider increasing the use of substantive tests of transactions in place of analytical procedures. c.Substantiate the accuracy of data through selfchecking digits and hash totals. d.Reduce the level of required tests of controls to a relatively small amount.
Which of the following is NOT a general control?* a. Backup of live data b. Use of passwords c. Setting an acceptable range for working hours d. Calamity-proof IT facilities ABOUT AUDITING/ACCOUNTING TOPICS
Which of the following is an advantage of computer-assisted audit techniques (CAATs)?a. All the CAATs programs are written in one computer language.b. The software can be used for audits of clients that use differing computer equipment and file formats.c. The use of CAATs has reduced the need for the auditor to study input controls for computer-related procedures.d. The use of CAATs can be substituted for a relatively large part of the required testing.
6 Which of the following types of audits are supported by data analytics? a. Information systems auditing b. Forensic audits in the case of fraud c. All of them. d. Process efficiency and effectiveness.
The client’s computerized exception reporting system helps audit teams conduct a moreefficient audit because ita. Condenses data significantly.b. Highlights abnormal conditions.c. Decreases the necessary level of tests of computer controls.d. Is an efficient computer input control.
Answer the following from Chapter 7 of the textbook (write a one page response for each question): Discussion Question 27: Explain how an audit trail might get “lost” within a computerized system. Discussion Question 37: Explain why Benford's Law is useful to auditors in the detection of fraud. Discussion Question 41: Explain the necessity for performing substantive testing even for audit clients with strong internal controls and sophisticated IT systems.
Question 1 To what does the following relate: The Internal Auditors perform random testing on controls to ensure that they are operating effectively 1. Control activities – access controls 2. Monitoring of controls 3. Inherent limitations – cost vs benefit 4. Inherent limitations – human error, time constraints Question 2 The following is not one of the five components of internal control. 1. Control Environment 2. Entity’s risk assessment process 3. Information system 4. Segregation of duties Question 3 To what does the following relate: All invoices are pre-printed, sequentially numbered, and pre-numbered 1. Control activities – documentation and records 2. Validity of transactions 3. Monitoring of controls 4. Inherent limitations-human error, time constraints Question 4 To what does the following relate: Before a purchase of inventory can be made, it has to be…