Quiz
Week 6
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Fragen in diesem Quiz (20)
1An IT systems is designed to ensure that management processes the information it needs to carry out its functions through the integrate actions of:
- AData-gathering, analysis and reporting functions
- BA computerized information retrieval and decision making system
- CStatistical and analytical procedure functions
- DProduction-budgeting and sales-forecasting activities
2Which of the following conditions would not normally cause the auditor to question whether material errors or possible irregularities exist?
- ABookkeeping errors are listed on an IT generated exception report
- BDifferences exist between control accounts and supporting master files
- CTransactions are not supported by proper documentation
- DDifferences are disclosed by confirmations
3As the strength of general IT controls weakens, the auditor is most likely to:
- AReduce testing of application controls performed by the computer
- BIncrease testing of general IT controls to ensure that they are operating effectively
- CExpand testing of automated application controls used to reduce control risk to cover greater portions of the fiscal year under audit
- DIgnoring gaining knowledge about the design of general IT controls and whether these have been placed in operation
4Which of the following is an example of an application control?
- AThe client uses access security software to limit access to each of the accounting applications
- BEmployees are assigned a user ID and password that must be changed every quarter
- CThe sales system automatically calculates the total sale amount and posts the total to the master files
- DSystems programmers are restricted from performing application programming functions
5Which of the following client IT systems can generally be audited without examining or directly testing the computer programs of the system?
- AA system that performs relatively uncomplicated processes and produces detailed output
- BA system that affects a number of essential master file and procedures a limited output
- CA system that updates a few essential master files and procedures no printed output other than final balances
- DA system that performs relatively complicated processing and produces very little detailed output
6Which of the following is true of generalised audit software programs
- AThey can only be used only in auditing online computer systems
- BThey can be used on any computer without modification
- CThey each have their own characteristics that the auditor must consider carefully before using in a given audit situation
- DThey enable the auditor to perform all manual compliance tests procedures less expensively
7Assume that an auditor estimates that 10 000 cheques were issued during the accounting period. If an automated application control that performs a limit check for the check for each cheque request is to be subjected to the auditor’s test data approach, the sample should include:
- AApproximately 1000 test items
- BA number of test items determined by the auditor to be sufficient under the circumstances
- CA number of test items determined by the auditor’s reference to the appropriate sampling tables
- DOne transaction
8An auditor will use the test data method in order to gain certain assurance with respect to:
- AThe input data
- BThe machine capacity
- CThe procedures contained within the program
- DThe degree of data entry accuracy
9The auditor looks for an indication of initials on a computer-produced exception report to see whether reported items have been properly followed up and resolved This is an example of:
- AA substantive test
- BA test of controls
- CA test of details of balances
- DBoth a test of controls and a substantive test
10Analytical procedures may be classified as being primarily:
- ATests of controls
- BSubstantive tests
- CTests of ratios
- DTests of details of balances
11To support the auditor’s initial assessment of control risk below maximum, the auditor performs procedures to determine that internal controls are operating effectively. Which of the following audit procedures is the auditor performing?
- ATests of details of balances
- BSubstantive tests of transactions
- CTests of controls
- DTest of trends and ratios
12The auditor faces a risk that the audit won’t detect material misstatements that occur in the accounting process. To minimize this risk, the auditor relies primarily on:
- ASubstantive tests
- BTests of controls
- CInternal control
- DStatistical analysis
13Which of the following statements relating to tests of controls is most accurate?
- AAuditing procedures cannot concurrently provide both evidence of effectiveness of internal control procedures and evidence required for substantive tests
- BTests of controls include observations of the proper segregation of duties
- CTests of controls provide direct evidence about monetary misstatements in transactions
- DTests of controls ordinarily should be performed as of the balance sheet date or during the period subsequent to that date
14Which of the following would be least likely to be included in an auditor’s tests of controls?
- AInspection
- BObservation
- CInquiry
- DConfirmation
15The primary objective of performing tests of controls is to obtain:
- AA reasonable degree of assurance that the client’s controls are operating effectively on a consistent basis throughout the year
- BSufficient appropriate evidence to afford a reasonable basis for the auditor’s opinion, without the need for additional evidence
- CAssurances that informative disclosures in the financial statements are reasonably adequate
- DKnowledge and understanding of the client’s prescribed procedures and methods
16Which of the following is ordinarily considered a test of control audit procedure?
- ASending confirmation letters to banks
- BCounting and listing cash on hand
- CExamining signatures on batch control reports
- DPreparing bank reconciliations of bank accounts as at the balance sheet date
17An auditor assesses internal control risk in accounts receivable as 100%, and is aware that there are industry problems currently affecting the timely collection of cash from debtors. In response to this, the auditor’s planned evidence mix will focus on:
- AIncreasing tests of controls in the audit program to confirm the high control risk
- BReducing the level of tests of details of balances because this will merely confirm that controls are unreliable
- CIncreasing substantive testing to reduce planned detection risk to an acceptable level
- DReducing analytical procedures to increase planned detection risk to an acceptable level
18Tests of controls are directed towards the effectiveness of controls. Which of the following is not an evidence-gathering procedure for assessing internal control effectiveness?
- AAsking the credit manager about credit authorization procedures
- BExamining a goods received report for evidence of checking
- CRe-performing batch-processing procedures
- DAssessing the realizable value of inventory items at year-end to ensure the valuation method is in accordance with acceptable policies and procedures in accounting standards
19A conceptually logical approach to the auditor’s evaluation of the internal controls consists of the following four steps:
(i) Determining the internal controls that should prevent or detect errors and fraud
(ii) Identifying control deficiencies to determine their effect on the nature, timing or extent of auditing procedures to be applied and suggestions to be made to the client
(iii) Determining whether the necessary procedures are prescribed and are being followed satisfactorily
Considering the types of misstatements and irregularities that could occur. What should be the order in which these four steps are performed?
- AI, ii, iii and iv
- BI, iii, iv and ii
- CIii, iv, I and ii
- DIv, i, iii and ii
20The sequence of steps in gathering evidence as the basis of the auditor’s opinion is:
- ASubstantive tests, initial assessment of control risk, and tests of controls
- BInitial assessment of control risk, substantive tests and tests of controls
- CInitial assessment of control risk, tests of controls and substantive tests
- DTests of controls, initial assessment of control risk and substantive tests
Informationen
- Beschreibung
- tertiary Auditing Quiz am Week 6, erstellt von Em * am 23/05/2015.
- Autor
- Em *
- Sprache
- English
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