Question 1

 Which of the following characteristics distinguishes computer processing from manual processing?
a. Computer processing virtually eliminates the occurrence of computational error normally
associated with manual processing.
b. Errors or irregularities in computer processing will be detected soon after their occurrences.
c. The potential for systematic error is ordinarily greater in manual processing than in computerized
processing
d. Most computer systems are designed so that transaction trails useful for audit purposes do not
exist.
Response: a

Question 2
 Which of the following is the major purpose of the auditor’s study and evaluation of the company’s
computer processing operations?
a. Ensure the exercise of due professional care.
b. Evaluate the reliability and integrity of financial information
c. Become familiar with the company’s means of identifying, measuring, classifying, and reporting
information.
d. Evaluate the competence of computer processing operating personnel.
Response: c

Question 3
 Which of the following controls would most likely provide protection against unauthorized changes in
production programs?
a. Restricting programmer access to the computer room.
b. Requiring two operators to be present during equipment operation.
c. Limiting program access solely to operators.
d. Implementing management review of daily run logs.
Response: c

Question 4
 What is the computer process called when data processing is performed concurrently with a
particular activity and the results are available soon enough to influence the particular course of
actions being taken or the decision being made?
a. Real-time processing c. Random access processing
b. Batch processing d. Integrated data processing
Response: a

Question 5
 The manager of computer operations prepares a weekly schedule of planned computer processing
and sends a copy of the computer librarian. The control objective this procedure serves is to
a. Authorize the release of data files to computer operators
b. Specify the distribution of computer results.
c. Specify file retention and disaster recovery policies.
d. Keep improper and unauthorized transactions from entering the computer facility.
Response: d

Question 6
 The internal auditor has just concluded a physical security audit of a data center which is primarily
engaged in top-secret defense contract work. The auditor has recommended biometric
authentication for workers entering the building. The recommendation might include devices that
verify all of the following, except
a. Speech patterns
b. Retina patterns
c. Fingerprints
d. Password patterns
Response: b

Question 7
 Many customers, managers, employees, and suppliers have blamed the computer for making
errors. In reality, computers make very few mechanical errors. Which of the following is the most
likely source of errors in a fully operational computer-based system?
a. Systems analysis and programming c. Processing
b. Operator error d. Input
Response: d

Question 8
 If a control total were computed on each of the following data items, which would best be identified
as a hash total for a payroll EDP application?
a. Total debits and total credits c. Department numbers
b. Net pay d. Hours worked
Response: c

Question 9
 An entity updates its accounts receivable master file weekly and retains the master files and
corresponding update transactions for the most recent two-week period. The purpose of this periodic
retention of master files and transaction data is to
a. Match internal labels to avoid writing on the wrong volume.
b. Validate groups of update transactions for each version.
c. Permit reconstruction of the master file if needed.
d. Verify run-to-run control totals for receivables.
Response: d

Question 10
 Which of the following would most likely cause a problem in the computer program development
process?
a. User specifications are inadvertently misunderstood.
b. Programmers use specialized application tools to stimulate the system being developed.
c. Programmers take a longer amount of time to develop the computer program than expected.
d. Written user specifications are used to develop detail program code.
Response: b

Question 11
 Which of the following is the greatest advantage of a database system?
a. Data redundancy can be reduced.
b. Backup and recovery procedures are minimized.
c. Multiple occurrences of data items are useful for consistency checking.
d. Conversion to a database system is inexpensive and can be accomplished quickly.
Response: a

Question 12
 The hardware element that takes the computer’s digital information and transforms it into signals
that can be sent over ordinary telephone lines is a/an
a. Intelligent terminal c. Terminal emulator
b. Point-of-sale terminal d. Modem
Response: d

Question 13
 A characteristic that distinguishes computer processing from manual processing is
a. The potential for systematic error is ordinarily greater in manual processing than in computerized
processing.
b. Errors or fraud in computer processing will be detected soon after their occurrences.
c. Most computer systems are designed so that transaction trails useful for audit purposes do not
exist.
d. Computer processing virtually eliminates the occurrence of computational errors normally
associated with manual processing.
Response: d

Question 14
 Which of the following groups should have the operational responsibility for the accuracy and
completeness of computer-based information?
a. External auditor c. Users
b. Internal auditors d. Top management
Response: c

Question 15
 Which of the following best describes the process called authentication?
a. The system verifies the identity of the user.
b. The user identifies himself/herself to the system.
c. The user indicates to the system that transaction was processed correctly.
d. The system verifies that user is entitled to enter the transaction requested.
Response: a

Question 16
 Which of the following statements most likely represents a disadvantage for an entity that maintains
data files on personal computers (PCs) rather than manually prepared files?
a. It is usually more difficult to compare recorded accountability with the physical count of assets.
b. Random error associated with processing similar transactions in different ways is usually greater.
c. Attention is focused on the accuracy of the programming process rather than errors in individual
transactions.
d. It is usually easier for unauthorized persons to access and alter the files.
Response: d

Question 17
 In planning the portions of the audit which may be affected by the client’s CIS environment, the
auditor should obtain an understanding of the significance and complexity of the CIS activities and
the availability of data for use in the audit. The following relate to the complexity of CIS activities
except when
a. Transactions are exchanged electronically with other organizations (for example, in electronically
data inter-change system [EDI]).
b. Complicated computations of financial information are performed by the computer and/or material
transactions or entries are generated automatically without independent validation.
c. Material financial statement assertions are affected by the computer processing.
d. The volume of transactions is such that users would find it difficult to identify the correct errors in
processing.
Response: c

Question 18
 When erroneous data are detected by computed program controls, such data may be excluded from
processing and printed on an error report. Who should review and follow up this error report?
a. Systems analyst c. Computer operator
b. Data control group d. Computer programmer
Response: b

Question 19
 The entity installed antivirus software on all its personal computers. The software was designed to
prevent initial infections, stop replication attempts, detect infections after their occurrence, mark
affected system components. The major risk in relying on antivirus software is that it may
a. Not detect certain viruses
b. Consume too many systems resources.
c. Interfere with system operations.
d. Make software installation too complex.
Response: a

Question 20
 One of the major problems in a CIS environment is that incompatible duties may be performed by
the same individual. One compensating control is the use of
a. Computer-generated hash total c. A self-checking digit system
b. A computer log d. Echo checks
Response: b

Question 21
 Which of the following computer-assisted auditing techniques allows fictitious and real transactions
to be processed together without client operating personnel being aware of the testing process?
a. Integrated test facility c. Parallel simulation
b. Input controls matrix d. Data entry monitor
Response: a

Question 22
 Misstatements in batch computer system caused by incorrect programs or data may not be
detected immediately because.
a. The processing of transactions in a batch system is not uniform.
b. There are time delays in processing transactions in a batch system.
c. The identification of errors in input data typically is not part of the program.
d. Errors in some transactions may cause rejection of other transactions in the batch.
Response: b
Question 23
 CIS application controls include the following, except
a. Controls over input.
b. Controls over processing and computer data files.
c. Controls over output.
d. Controls over access to systems software and documentation.
Response: a

Question 24
 Generalized audit software is a computer-assisted audit technique. It is one of the widely used
techniques for auditing computer application systems. Generalized audit software is most often used
to
a. Verify computer processing
b. Process data fields under the control of the operations manager
c. Independently analyze data files
d. A & B
Response: c

Question 25
 Which of the following most likely represents a significant deficiency in the internal control structure?
a. The systems analyst reviews applications of data processing and maintains systems
documentation.
b. The systems programmer designs systems for computerized applications and maintains output
controls.
c. The control clerk establishes control over data received by the EDP department and reconciles
control totals after processing.
d. The accounts payable clerk prepares data for computer processing and enters the data into the
computer.
Response: b

Question 26
 The computer programs are enhanced productivity tools that are typically part of a sophisticated
operating systems environment. For example, data retrieval software or code comparison software.
a. Proposed-written programs
b. Systems management programs
c. Utility programs
d. Generalized audit software
Response: b

Question 27
 Which of the following is the primary objective of security software?
a. To detect the presence of computer viruses
b. To monitor the segregation of functional responsibilities within the application
c. To prevent installation of unauthorized utility software
d. To control access to information system resources.
Response: d

Question 28
 What is the appropriate term for the process of monitoring, evaluating, and modifying a system?
a. Feasibility study
b. Maintenance
c. Implementation
d. Analysis
Response: b

Question 29
 An auditor’s investigation of a company’s electronic data processing control procedures has
disclosed the following four circumstances. Indicate which circumstance constitutes a weakness in
internal control.
a. Machine operators do not have access to the complete run manual.
b. Machine operators are closely supervised by programmers
c. Programmers do not have the authorization to operate equipment.
d. Only one generation of back-up files is stored in an off-premises location.
Response: d

Question 30
 If, in reviewing an application system, it is noted that batch controls are not used, which of the
following statements by the user of the system is acceptable as a compensating control?
a. The volume of transactions prohibits batching.
b. We do a 100% physical review of the input document to the output document.
c. We do a 100% key verification of all data input.
d. The supervisor must approve all inputs.
Response: a

Question 31
 Which of the following is not a characteristic of a batch processed computer system?
a. The collection of like transactions which are sorted and processed sequentially against a master
file.
b. Keypunching of transactions, followed by machine processing.
c. The production of numerous printouts.
d. The posting of a transaction, as it occurs, to several files, without intermediate printouts.
Response: d

Question 32
 Which of the following operating procedures would most likely increase an entity’s exposure to
computer viruses?
a. Downloading public-domain software from electronic bulletin boards.
b. Installing original copies of purchased software on hard disk drives.
c. Frequent backup of files
d. Encryption of data files.
Response: a

Question 33
 Which of the following controls would most likely provide protection against unauthorized changes in
production programs?
a. Restricting programmer access to the computer room.
b. Requiring two operators to be present during equipment operation.
 c. Limiting program access solely to operators
d. Implementing management review of daily run logs.
Response: c

Question 34
 The most important segregation of duties in the organization of the information systems function is
a. Using different programming personnel to maintain utility programs from those who maintain the
application programs.
b. Having a separate information officer at the top level of the organization outside of the accounting
function.
c. Assuring that those responsible for programming the system do not have access to data
processing operations.
d. Not allowing the data librarian to assist in data processing operations.
Response: c

Question 35
 The purpose of using generalized computer programs is to test and analyse a client’s computer
a. Systems c. records
b. Equipment d. processing logic
Response: c
Assignment
 Type: Quiz
 Max score: 35
 Start: Apr 22, 1:30 pm
 Due: Apr 22, 3:20 pm
 No more submissions are allowed
 Timer: 100:00 (mm:ss)

Score
Your latest submission is used
84

Category Progress
Grade 74.28571428571429
None 25.714285714285708
26/35 (74%)

Submission
Submitted: Apr 22, 3:20 pm
Time taken: 76 m, 13 s.
Late by less than a minute 
Attempts: 2
Max. attempts: 2
Allow late submissions: No
Comments
Submission 1 @ 1:53 pm Apr 22, 2022
Submission 2 @ 3:20 pm Apr 22, 2022
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