MSTIP - IT audit and control - Midterm Exam

Statement 1: Spreadsheets or database software may be used as an audit planning tool to develop an audit universe.

Statement 2: Spreadsheets or database software may also be used for risk assessment and preparation of audit schedules.

• Statement 1 is correct.

• Statement 2 is correct.

• Both statements are correct.

• Both statements are incorrect.

Statement 1: Data sharing and communication of audit procedures and results between auditors of the same team are made possible with the use of word processing, spreadsheet and presentation tools, among others.

Statement 2: Electronic connectivity not only allows auditors to communicate but also provides access for audit clients to exchange information.

• Statement 1 is correct.

• Statement 2 is correct.

• Both statements are correct.

• Both statements are incorrect.

Statement 1: An advantage of having a central data repository for auditors is that it enables the saving and availability of past audit planning and documentation procedures such as risk assessment, audit schedules and budget data.

Statement 2: Database applications allows consolidation of data that can be used for future decision making by top management, for example analysis of audit budget vs actual, trend reports, etc.

• Statement 1 is correct.

• Statement 2 is correct.

• Both statements are correct.

• Both statements are incorrect.

Use of generalized audit software makes it possible to perform required functions directly on application files. Audit softwares can be used to:

1. Analyze and compare files

2. Conduct random samples

3. Prepare confirmation letters

4. Validation computations

5. Select specific records for examination

• 1,2,3 and 4

• 1,2,3 and 5

• 1,3,4, and 5

• 2,3,4 and 5

• 1,2,3, 4 and 5

Statement 1: Information systems auditor cannot help determine compliance with a particular procedure for operational and financial auditors.

Statement 2: When an information systems auditor reviews the spreadsheets to understand the flow of a process and whether it provides a correct output from the input, (s)he needs to check the accuracy of formulas used.

• Statement 1 is correct.

• Statement 2 is correct.

• Both statements are correct.

• Both statements are incorrect.

Auditors use spreadsheets for analyzing data and forming opinions. Spreadsheets are even used or relied on by management for decision making. Which is not a risk that is associated with poor spreadsheet design?

• Lack of reliability

• Lack of auditability

• Lack of modifiability

• Lack of users

This is a built-in test environment within a system that allows testing of the process for accuracy or reliability.

• Integrated test facility

• Parallel simulation

• Transaction tagging

• Test data

The following are problem areas in a processing cycle that an audit staff needs to identify:

1. Redundant processing of data

2. Bottlenecks that delay processing

3. Points in the operating cycle where there is lack of review of output reports

• 1, 2 and 3

• 1 and 2 only

• 1 and 3 only

• 2 and 3 only

The following is an example of a career path for an IT auditor. Find the correct sequence.

1. Senior IT auditor

2. IT audit manager

3. Director of IT audit

4. IT audit staff

5. IT audit trainee

• 5,4,2,1,3

• 4,5,2,1,3

• 5,4,1,3,2

• 5,4,1,2,3

• 4,5,1,2,3

This refers to all training, certification and education that a worker needs to succeed in his or her career.

• Counseling and feedback

• Performance assessment

• Training

• Career path planning

• Professional development