Audit 14

Question 1

The employee managing the computer software (custody) should not be responsible for what

Answer 1

debugging ( authorization)

Question 2

Controls in a computer environment provide assurance that

Answer 2

transactions are authorized and that all authorized transactions are processed

Question 3

What and when are the advantages of using IT for Internal Control

Answer 3

• Enhanced timeliness of data
• ## very effective with large volumes of similar items

Question 4

What is a remote node router

Answer 4

device used to connect two networks

Question 5

What is a frame relay protocol

Answer 5

This is a method pf transporting dat over a wide area network

Question 6

What are reasons for maintaining an audit trail

Answer 6

• a deterrent to fraus - because you can trace transactions from beginning to end
• assists in monitoring as it allows an auditor to look back at transactions to determine if they have been processed correctly
• They facilitate query answering - allowing someone to trace a transact ion from beginning to end to repent to a query

Question 7

What is a hash total

Answer 7

The sum of a column of values that have no meaning other than as an identifier (802)

• example a total of part numbers - which doesn’t have a meaningful quantity, but may indicate that all line items on an invoice have been entered.

Question 8

What is an embedded audit node

Answer 8

an audit system that is inserted into the clients system so that it can apply audit procedures to data as it is being processed

Question 9

What is a snapshot application

Answer 9

applying procedures to s specific set of data or at a specific point in time

Question 10

What is an integrated data check

Answer 10

This involves integrating data with the client’s data so that the auditor can see hoe yje client’s system processes it

Question 11

What is a test data generator

Answer 11

This is used to develop data to be run through the client’s system to test it

Question 12

When doing a GAS - GAGAS and detect noncompliance that have material effect - what should you express in your report on compliance

Answer 12

A qualified or adverse opinion

Question 13

If not already done, during the review stage - the auditor should perform A/P on which transaction cycle

Answer 13

Revenue

Question 14

What step is performed first in applying A/P

Answer 14

develop an expectation of a balance or ratio by using relationships that are expected to exist

Question 15

Assessing CR below the max would involve

Answer 15

Identifying control policies and procedure relevant to specific assertions. They are then evaluated to determine whether or not they adequately support the assertions to enable the auditor to reduce the nature, timing or substantive testing

Question 16

What is a performance indiction

Answer 16

These involve comparing results to expectations. Example - inventory. The qualities in records is the amount EXPECTED to have on hand. This is compared to the physical count- the ACTUAL or results - this makes it a performance indicator

Question 17

What is physical control - Control Activity

Answer 17

This involved LIMITING the physical access to resources to those with authority

Question 18

What is Information Processing Control

Answer 18

• These are procedures that are REQUIRED to be followed including authorizations received and paperwork completed before a transaction will be processed

Question 19

What is included in a standard bank confirmation

Answer 19

• Balances of deposit accounts and outstanding loans
• Provides info about arrangements related to compensating balances and collateral for loans
• it does NOT ordinarily provide info on the dates on which inactive accounts were closed

Question 20

What is in an audit engagement letter

Answer 20

• objective and scope of engagement
• fees
  -the assistance the auditor will require from client
• ## Will NOT Include an indication that advice given will be kept confidential because - they purpose is NOT to give advice