PAS3143 Quiz 1

An application may be considered to be complex when :

• The volume of transaction

• The computer automatically generate material transaction or entries directly to another application

• The computer perform complicated computations of material transaction

• All answer state

CAAT's would normally be used when:

• auditing around the computer

• auditing without the computer

• auditing with the computer

• auditing through the computer

A computer based system does not include which of the following?

• systems programs

• control procedures

• computer terminals

• sales invoices

Which of the following is not a method used by management to supervise the computer operation?

• procedures to limit access to buildings

• internal audit function

• procedures to limit access to computer system

• system design and documentation standards

A run-to-run total is an example of a...

• output control

• processing control

• input control

• audit substantive procedure

By auditing around the computer we mean

• the inputs and the corresponding outputs are compared and checked for correctness

• the programs and procedures are checked for correctness

• special synthetic data is input and outputs checked for correctness

• programs are written to check the functioning of the computer hardware

Which of the following is NOT considered an advantage to using Computer Assisted Audit Techniques?

• Automating audit activities for repeat or continuous analysis

• No longer needing to employ human auditors

• Filtering large amounts of data to uncover duplicates and inconsistencies

• Being able to analyze full sets of data

Which of the following is NOT a benefit of Computer Assisted Audit Techniques?

• They integrate with commonly used data storage platforms

• They are user friendly and can be operated with ease by most auditors

• They are very expensive and therefore only for the largest companies

• They come prebuilt with many common analysis' and reports available

The most important function of generalized audit software is the capability to

• Access information stored on computer files.

• Select a sample of items for testing.

• Evaluate sample test results.

• Test the accuracy of the client's calculations.

Which of the following audit procedures would an auditor is least likely to perform using a generalized computer audit program?

• Searching records of accounts receivable balances for credit balances.

• Investigating inventory balances for possible obsolescence.

• Selecting accounts receivable for positive and negative confirmation.

• Listing of unusually large inventory balances.