CISAud Prelim

The purpose of an __ audit is to provide an independent assessment of some
technology- or systems-related objects, such as proper IT implementation, or controls over
computer resources.

Internal auditors represent the interests of third-party stakeholders in the
organization, such as stockholders, creditors, and government agencies.

• True

• False

_____ auditing is conducted by certified public accountants who are independent of the organization’s management.

Internal auditing tasks include examining an operation’s compliance with legal obligations, evaluating operational _______, detecting and pursuing fraud within the firm,
and conducting IT audits.

• efficiency

• effectiveness

• both efficiency and effectiveness

• neither the two

Materiality refers to the size of the effect of a transaction. From a cost-benefit point of view, a threshold is set above which the auditor is concerned with the correct recording and effects of transactions.

• True

• False

• Either True or False

• Neither True or False

The _____ specifically holds management responsible for internal controls.

• Sarbenes- Ocxley Act

• Sarbanes–Oxley Act

• Sarvanes-Oxley Act

• Sarbanes Oxley Acts

The four modifying assumptions that guide designers and auditors of internal control
systems?

• Management responsibility, reasonable assurance, methods of data processing, and limitations.

• Management responsibility, assurance, methods of data processing, and limitations.

• Management responsibility, reasonable assurance, methods of data processing and encoding, and limitations.

• Management responsibility and accountability, reasonable assurance, methods of data processing, and limitations.

____ controls apply to a wide range of exposures that systematically threaten the integrity of all applications processed within the IT environment.

• General

• Application

• Internal

• None of the choices

Some examples of ___ controls would be a control to make sure that each employee receives only one paycheck per pay period and a control to ensure that each invoice gets paid only once.

• General

• Application

• Internal

• None of the choices

________is the probability that the auditor will render an unqualified (clean) opinion on financial statements that are, in fact, materially misstated.