Question 1
A check digit is a method of detecting incorrectly account numbers that are entered incorrectly.
True
False
Question 2
Tracing is a method used to verify the logical operations executed by a computer.
True
False
Question 3
Generalized audit software packages are owned by the auditor’s client.
True
False
Question 4
In parallel simulation a program is created that does what the application program does. Transactions are reprocessed and the parallel simulation results are compared to the actual application results.
True
False
Question 5
The integrated test facility involves an audit module designed into the application with dummy or test records integrated among legitimate records. An example would be a dummy company or account against which transactions could be tested.
True
False
Question 6
A salami fraud affects a large number of victims, but the harm to each appears to be very small.
True
False
Question 7
Check digits are designed to detect transcription and transposition errors.
True
False
Question 8
The program maintenance change authorization should be approved by either the computer services management or the user department management.
True
False
Question 9
An example of a hash total is
total payroll checks–$12,315
total number of employees–10
sum of the social security numbers–12,555,437,251
none of the above
Question 10
Which input control check would detect a payment made to a nonexistent vendor?
Incorrect numeric/alphabetic check
missing data check
numeric/alphabetic check
range check
validity check
Question 11
Transaction data should never be used to update a master file until it is tested for validity, accuracy and completeness.
True
False
Question 12
The employee entered “40” in the “hours worked per day” field. Which check would detect this unintentional error?
numeric/alphabetic data check
sign check
limit check
missing data check
Question 13
The integrated test facility (ITF) uses dummy records integrated with legitimate records.
True
False
Question 14
The white box approach audits through the computer and tests the application logic directly.
True
False
Question 15
Organizations must insure that there is adequate control in regard to report distribution.
True
False
Question 16
An example of a limit check is having a payroll system test the number of hours worked. For example, if the company’s policy is that no worker works more than 50 hours, than the system can test the hours worked field and either reject the transaction or show it on an exception report.
True
False
Question 17
Which of the following is not one of the audit objectives relating to systems development?
Ensure that the systems development activities are applied consistently and in accordance with management’s policy to all systems development projects.
Ensure that the system as originally implemented is free from material errors and fraud.
Ensure that system documentation is sufficiently accurate and complete.
Ensure that the system was judged necessary and justified at various checkpoints throughout the SDLC.
All of the above are audit objectives relating to systems development.
Question 18
The black box approach to testing application controls is essentially auditing around the computer.
True
False