July-20_45 hour ITT Exam

Number: 000-000
Passing Score: 600
Time Limit: 60 min
File Version: 1.0

The Institute of Chartered Accountants of Nepal

Assessment test for 45 hours of IT Training

Full Marks: 800

Pass Marks: 480

Total Number of Questions: 40

Time Available to Answer the Questions: 1 Hour

{You are required to answer both the Multiple Choice Questions and Practical Question in the time allotted}
Exam A

QUESTION 1
Audit objectives are formal statements that describe the

A. Outcome of the audit

B. purposes of the audit
C. audit report
D. risk assessment

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 2
The auditor selects and uses computer-aided audit tools to

A. Issue qualified audit report because after using the CAAT tools frauds are most likely to discovered
B. gather information and conduct the planned audit tests
C. keep up with the contemporary technology
D. all of the above

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 3
Using ODBC, it is possible to import Tally data into excel

A. only if the latest version of Tally is installed

B. only if Tally is running with ODBC server
C. only if you know how to import the database
D. Tally data cannot be imported in Excel.

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 4
In the context of Concurrent Audit Techniques, SCARF stands for

A. SystemsControl And Review File

B. SystemsControl AuditReview File
C. SystematicControl And Review File
D. SystemsConcurrency After Reviewing File
Answer B
Correct Answer:
Section: (none)
Explanation

Explanation/Reference:

QUESTION 5
In Cluster sampling

A. the items in the population are first classified into separate subgroups, or strata, by the auditor on the basis
of one or more important characteristics. Then a simple random or systematic sample is taken separately
from each stratum
B. the population items occur naturally in subgroups. Entire subgroups are then randomly sampled
C. the items are selected from the population at a uniform interval of a listed order, such as choosing every
tenth account receivable for the sample.
D. None of the above

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 6
A/An ------------- is the official notice that the firm sends to its customers to advise them to the amount of money
that is owed.

A. Invoice
B. Bill
C. A or B
D. None of the above

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 7
In the Tally Software, the ------------ directory stores all data entered by the user.

A. Bin
B. Data
C. Sub
D. None of the above

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:
QUESTION 8
The day book contains transactions relating to ____________

A. Income or expenditure
B. Sales or purchase
C. Asset or liability
D. Profit or loss

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 9
_______ are units to which costs / expenses are allocated

A. Cost Centres
B. Profit Centres
C. Cost Categories
D. Stock Category

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 10
If you enable tally vault, Tally _________ the company data

A. locks
B. splits
C. combines
D. encrypts

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 11
______________are the only default ledgers in Tally.

A. Cash and Profit & Loss Accounts

B. Income and Expense Accounts
C. Opening Balance Equity and Cash Accounts
D. All of the above

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 12
Audit Trail is

A. History of activities registered in an accounting system

B. The process through which the audit is performed
C. Processing steps performed by the system
D. Document workflow in both manual or computerized system

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 13
Under System Implementation, Hard changeover means

A. The old and new systems are run in parallel, usually for an extended period of time
B. Converting to the new system is usually done in small steps or phases
C. Converting hard copies of the documents into electronic form
D. A full change occurring at a particular cutoff date and time

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 14
In a subsidiary ledger

A. Summary of Customer/Supplier is kept

B. Details of Customer/Supplier is kept
C. Details of subsidiary company is kept
D. In modern accounting system we no longer use subsidiary ledgers

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 15
_____________is the facility in accounting packages which allows the privileged user to log in as an
administrator and perform administrative tasks like viewing the audit log.

A. Password Control
B. Encryption
C. Vault Password
D. Authorization signature

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 16
At a minimum, we can categorize the accounts into

A. Assets, Liabilities, Equity, Income and Expenses

B. Balance Sheet Accounts and Profit & Loss Accounts
C. Assets, Liabilities, Income and Expenses
D. Trading and Non-Trading

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 17
Cost of Goods Sold is a type of

A. Liability Account
B. Expenses Account
C. Inventory Assets Account
D. Profit and Loss Account

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 18
Which of the following types of transactions usually require Ajusting Entriy

A. Payroll accrual (salary outstanding)

B. Unearned revenue
C. Prepaid insurance
D. All of the above

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:
QUESTION 19
Gateway of Tally is

A. Main screen of Tally

B. Payment Voucher Entry Screen
C. Receipt Voucher Entry Screen
D. All of the above

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 20
What does Alt+D shortcut do in Tally

A. Delets the active Voucher, Ledger or Group

B. Creates New Account
C. Moves the crusher one screen down
D. None of the above

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 21
To view the Balance Sheet: Go to __________________

A. Gateway of Tally > Balance Sheet

B. Gateway of Tally > Financial Statements> Balance Sheet
C. Gateway of Tally > Reports > Balance Sheet
D. Gateway of Tally > Year End Reports > Balance Sheet

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 22
Debit always increase the account balance

A. TRUE
B. FALSE

Correct Answer: B
Section: (none)
Explanation
Explanation/Reference:

QUESTION 23
The following are the major reasons of using CAAT, EXCEPT

A. Increased productivity
B. Tasks that might be impractical or impossible to be performed manually can be completed using CAAT
C. Reduced cost due to diminished time required to complete audit tasks
D. The detection risk becomes zero if CAAT is used

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 24
Hash total is

A. Summation of a nonfinancial field to keep track of the records in a batch

B. Summation of a financial field to keep track of the records in a batch
C. Summation of all the numerical fields to keep track of the records in a batch
D. Summation of all the alphabetical fields to keep track of the records in a batch

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 25
Use of Computer-Assisted Audit Tools in the Audit Process primarily depends on

A. Complexity of the IT environment

B. Size of the firm
C. Volume of the transactions
D. Monitory value of the transactions

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 26
Histograms are

A. Bar charts showing graphic relationships among strata of data

B. Historical data
C. Pie charts showing graphic relationships among strata of data
D. All of the above

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 27
IDEA Stands for

A. Intensive Data Extraction and Analysis

B. Intensive Data Evaluation and Analysis
C. Interactive Data Extraction and Analysis
D. Internal Data Extraction and Analysis

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 28
___________________represents the added costs of not doing it right the first time

A. Price of conformance (POC)

B. Price of nonconformance (PONC)
C. Price of badperformance (POBC)
D. Price of lowperformance (POLC)

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 29
The objectives of the source-code review is to

A. Identify erroneous and nonstandard code

B. Identify unauthorized code
C. Identify ineffective and inefficient code
D. All of the above

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 30
Risk assessment is a technique used to examine potential projects in the audit universe and
A. choose projects that have the greatest risk exposure
B. choose projects that have the least risk exposure
C. exclude projects that have the least risk exposure
D. choose projects that have the greatest risk exposure

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 31
The time-honored method of using the general ledger as the starting point for audits is not enough in
examinations of modern computer systems. The auditor or financial manager should develop a consistent,
logical, audit, or management approach that

A. gives highest priority to the computerized methods

B. gives lowest priority to the computerized methods
C. fully complies with COBiT standard issued by ISACA
D. accommodates both manual and computerized methods.

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 32
Existence check is an input check to confirm that

A. the field like the customer or the student name exists in the master file
B. the data exists in the database
C. proper control exists in the application under question
D. the input field actually contains data

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 33
If you enable tally vault, Tally _________ the company data

A. locks
B. splits
C. combines
D. encrypts

Correct Answer: D
Section: (none)
Explanation

Explanation/Reference:

QUESTION 34
POS stands for

A. Point of Sales
B. Purchase Order Sales
C. Pre Order Sales
D. Purchase Order Setting

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 35
ACL Stands for

A. Audit Command Language

B. Audit Commander Language
C. Advanced Computer Language
D. Alternative Computer Language

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 36
By default Tally has two levels of Security - __________________

A. Owner and Data Entry

B. Admin and User
C. Manager and Employee
D. Create and Approve

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 37
QuickBooks is an _____________

A. CRM Software
B. Accounting Software
C. Word Processing Software
D. Online Collaboration Software

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference:

QUESTION 38
Auditing around the computer refers to

A. concentration on the employee performance review, rather than computer performance

B. concentration on control, rather than physical or electronic documents
C. concentration on the input and output from the computer, rather than what happens in the computer
D. concentration on audit schedule, rather than control

Correct Answer: C
Section: (none)
Explanation

Explanation/Reference:

QUESTION 39
Control totals under Input Control is

A. Arbitrary sum of a field across all records

B. All data in a particular batch of similar type
C. Total number of words in the records
D. None of the above

Correct Answer: A
Section: (none)
Explanation

Explanation/Reference:

QUESTION 40
In Incremental system testing

A. All inter-module dependencies are tested together

B. Subsets of modules are assembled iteratively and tested
C. Structured walk-throughs is done
D. Desk checking is performed

Correct Answer: B
Section: (none)
Explanation

Explanation/Reference: