Burke AUD Module IV


an advantage of using systems flow charts to documentinformation about internal control considered using internal control questionnaires is that systems flow charts


provide a visual depiction of clients activities


a flowchart is most frequently used by and auditor in connection with the


review of the clients internal control


Matthews Corp. as change from a system of recording time worked on the clock cards to a computerized payroll system in which employees record time in and out with magnetic cards. The computer system automatically updates all payroll records. Because of this change


part of the audit trail is altered


which of the following is correct concerning batch processing of transactions


is more likely to result in an easy-to-follow audit trail than is online transaction processing


and auditor would be most likely to assist control risk at the maximum level an electronic environment with automated system generated information when


fixed asset transactions are few in number, but large in dollar amount


in a highly automated information processing system tests of control


may be required in some circumstances


which of the following is least likely to be considered by an auditor considering engagement of an information technology specialist on an audit


requirements to assess going concern status


which of the following strategies would a see PA most likely considering auditing an entity that processes most of its financial data only in electronic form, such as a paperless system


continuous monitoring and analysis of transaction processing within embedded audit module


which of the following is not a major reason for maintaining an audit trail for a computer system


analytical procedures


computer systems are typically supported by a variety of utility software packages that are important to when auditor because they


may enable unauthorized changes to data files if not properly controlled


and auditor would most likely be concerned with which of the following controls in a distributed data processing system


access controls


which of the following types of evidence would in auditor most likely examined to determine whether internal control is operating as designed


client records documenting the use of computer programs


in auditor anticipates assessing control risk at a low level and a computerized environment. Under these circumstances, on which of the following activities with the auditor initially focus


general control activities


after the preliminary phase of the review of a client computer controls, and auditor may decide not to form tests of controls related to the controls within the computer portion on the clients internal control. Which of the following would not be a valid reason for choosing to admit such tests


the controls appear adequate


auditing by testing the input and output of the computer system instead of the computer program itself will


not detect program areas which do not show up in the output sample


which of the following client information technology systems generally can be audited without examining or directly testing the IT computer programs of the system


system that performs relatively uncomplicated processes and produces detailed output


in auditor wishes to capture and entities data as transactions are processed in continuously test the entities computerized information system most likely would use which of the following techniques


embedded audit module


which of the following computer-assisted auditing techniques processes client input data on a controlled program under the auditors control to test controls in the computer system


parallel simulation


to obtain evidence that online access controls are properly functioning, and auditor most likely would


enter invalid identification numbers or passwords to ascertain whether the system rejects them


and auditor most likely would introduce test data into a computerized payroll system to test controls related to the


discovery of invalid employee ID numbers


when in auditor test a computerized accounting system, which of the following is true of the test data approach


test data are processed by the clients computer programs under the auditors control


which of the following is not among the errors that and auditor might include in the test data when auditing a client computer system


numeric characters in alphanumeric fields


which of the following computer-assisted auditing techniques allows fictitious in real transactions to be processed together without client operating personnel being aware of the testing process


integrated test facility


which of the following methods of testing application controls utilizes a generalized audit software package prepared by the auditors


parallel simulation


in creating leads schedules for an audit engagement, A CPA often uses automated workpaper software. What client information is needed to begin this process


general ledger information such as account numbers, prior year account balances, and current year unadjusted information


using microcomputers in auditing may affect the methods used to review the work of staff assistance because


working paper documentation may not contain readily observable details of calculations


in auditor would least likely use computer software to


assess computer control risk


a primary advantage of using generalized audit software packages to audit the financial statements of the client that uses a computer system is that the auditor may


access information stored on computer files while having limited understanding of the clients hardware and software features


auditors often make use of computer programs that perform routine processing functions such as sorting and merging. These programs are made available by electronic data processing companies and others and are specifically referred to as


utility programs press


Smith Corporation has numerous customers. A customer file is kept on disk storage. Each customer file contains name, address, credit limit, and account balance. The auditor wishes to test is filed to determine whether credit limits are being exceeded. The best procedure for the auditor to follow would be to


develop a program to compare credit limits with account balances and print out the details of any account with the balance exceeding its credit limit


in auditor most likely would tests for the presence of unauthorized computer program changes by running a


source code comparison program


in entity has the following invoices in a batch invoice number, product, quantity, unit price

invoice numbers are 201, 202, 203, 204. Data in a 4 x 3 matrix exists on the other three columns.

Which of the following numbers represents the record count


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