CIS |Quiz2

1. What defines a CIS environment in the context of auditing?
   

• The use of any computer, regardless of type or size, in processing financial information relevant to an audit.

• The exclusive use of third-party computers for financial data processing.

• The involvement of a specific type of computer system in the audit process.

• The use of computers only by the entity itself.

• None of the aforementioned options.

How do computers impact the internal control structure in a CIS environment?

• They have no influence on internal controls.

• They affect the processing, storage, and communication of financial data.

• They reduce the need for internal controls.

• They only impact external controls.

• 
  None of the aforementioned options.

Which risks are affected by the CIS environment?

• Inherent risk and control risk.

• Detection risk and sampling risk.

• Control risk and detection risk

• Inherent risk and sampling risk.

• All of the above

What should auditors consider when designing audit procedures in a CIS environment?

• The weather conditions during the audit.

• The impact of CIS activities on overall risk.

• The availability of office supplies.

• The auditor’s personal preferences.

• The auditor's relationship status

1. What is accounting?

• The process of identifying, measuring, and communicating economic information about an organization or other entity to permit informed judgments by users of the information.

• The exclusive use of third-party computers for financial data processing.

• The involvement of a specific type of computer system in the audit process.

• The use of computers only by the entity itself.

1. What are the key aspects of accounting?
   (Might have multiple correct answers)

• Identifying, collecting, recording, classifying, measuring, summarizing, communicating.

• Calculating tax liabilities.

• Managing financial records for non-profit organizations.

• Conducting external audits.