Discuss any concerns you would have as an auditor and any actions you would take.
Q: Which of the following is not a typical problem found by auditors when cleansing client data for the…
A: Option D
Q: Which of the following is an advantage of computer-assisted audit techniques (CAATs)?a. All the…
A: Answer: Option b.
Q: When an auditor tests the internal controls of a computerized accounting system, which of the…
A: Internal controls are the procedures that are implemented for controlling the fraudulent activities…
Q: Refer to the given system flowchart, and we have discussed the control weakness and the risk…
A: Frauds in sales department are as follows: Recording fake invoices Misrepresenting the excessive or…
Q: Explain how client internal controls can be improved through the proper installation of IT.
A: Internal controls are defined as the procedures, mechanisms and rules executed through company in…
Q: You are an auditor. The client's organization has recently implemented ERP system and data…
A: The auditors will audit the company based on their knowledge, and experience. There are many audit…
Q: AU-C section is associated with SAS No. 128
A: SAS No. 128 is the statement on auditing standards on "Using the work of internal auditors". This…
Q: Compare the designs of your choice of two internal controls. Determine which is the preferred design…
A: Preventive control is the most important control out of the other internal controls because it…
Q: Refer to the given system flowchart, and we have discussed the control weakness and the risk…
A: Business risks are associated with the internal control systems that every company needs to follow.…
Q: Dean Tomaszczyk was training junior audit staff and mentioned the importance of third party…
A: External Confirmation It is the process of receiving and analysing audit evidence from a third party…
Q: You are conducting substantive tests on the accounts receivable file to verify its accuracy. The…
A:
Q: A CIS environment exists when a computer of any type o. size is involved in processing of an…
A: Answer: CIS is defined as one of information system which is based on computer information system.…
Q: Audit sampling for tests of controls is generally appropriate when the application of the control…
A: Solution:- Introduction:- Audit sampling may be defined as ‘the application of audit procedures to…
Q: Explain how client internal controls can be improved through the proper installation of IT.
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: ider “control environment.” Why it is important for auditors to understand a client’s control…
A: A controlled environment refers to the term "Internal control environment" which implies that the…
Q: An internal auditor is examining the effectiveness of procedures management established to protect…
A: "Independent examination of financial information of any company, whether profit-oriented or not,…
Q: If a firm decides early to go with a special-purpose system, such as SAP, based upon the…
A: Accounting Information System: It is a structural framework used by business to collect, store,…
Q: A primary advantage of using CAATs in the audit of an advanced computerized system is that it…
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Q: Specialists with specialized skills in IT processing are seldom used on audits since each audit team…
A: In a field of auditing, the specific knowledge should be with regard to the auditing standards and…
Q: When using test data, why are audit teams required to prepare only one transaction to test each IT…
A: Audit test data is used to test the existence and effectiveness of controls built into an…
Q: Which of the following statements most likely represents a control consideration for anentity that…
A:
Q: Which preventive, detective, and/or corrective controls would best mitigate the following threat,…
A: A criminal remotely accessed a sensitive database using the authentication credentials (user ID…
Q: A primary advantage of using generalized audit software packages to audit the financial statements…
A: The primary advantage of using a prepacked audit system is determine by the use cases.
Q: Suppose your company has built a database application that runs on a centralized database, but even…
A: Will Be Explained :
Q: What factors do you think might cause an auditing team to spend more time than average on tests to…
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Q: 1. Computer Assisted Audit Techniques (CAATs) are important tools than an IS auditor uses to gather…
A: We shall answer the first question since the exact question wasn't specified. Please resubmit a new…
Q: Why do fraud examiners treat data differently than auditors? Why is this so
A: To minimize a client's tax liability, fraud examiners handle information differently than auditors.…
Q: 1) Which of the following statements is the most accurate? a. Data analytics can be…
A: Tool for analyzing the data set in a systematical manner. An auditor can use the data analytics tool…
Q: Why is human behavior considered one of the biggest potential threats to operating system…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want a…
Q: The client’s computerized exception reporting system helps audit teams conduct a moreefficient audit…
A: Answer: b. Highlights abnormal conditions.
Q: Marsha Mason, CPA, believes that it is appropriate to obtain an understanding of internal control…
A: Understanding of internal controls is a preliminary step in planning the audit as it will help the…
Q: Case Study. You are conducting substantive tests on the Accounts Receivable file to verify its…
A: Auditing:- An audit is considered as physical examination of books of accounts of a company by an…
Q: Auditors of ERP systemsa. need not be concerned about segregation of duties because these systems…
A: Auditors of Enterprise Resource Planning: The responsibility of an auditor is to gather knowledge…
Q: Which preventive, detective, and/or corrective controls would best mitigate the following threat,…
A: An organization bought the main "off-the-rack" internet business programming for connecting its…
Q: Which of the following is NOT a general control?* a. Backup of live data b. Use of passwords c.…
A: For data protection and IT security, various types of internal controls is implemented by the…
Q: As an added measure, a company has set up its network so that computers that currently log in…
A: Accessibility refers to The process of creating products usable by the people with the various…
Q: Select the correct answer(s) for the following multiple-choice questions. Note that there may be…
A: b) The type of computer fraud that is the most difficult because it requires the most skill is…
Q: The increasing use of sophisticated EDP systems has produced significant changes in the accounting…
A: Answer: The introduction of a computerized or electronic data processing (EDP) register has not…
Q: One of your Firm’s Managers, Colin Cronen is responsible for the auditing the financial statements…
A: Based on review of notes, describe weaknesses in internal control over information and data flows…
Q: Many companies have part or all of their IT processing done by cloud service providers. Required: a.…
A: A third-party business that provides cloud-based platform, infrastructure, application, or storage…
Q: omputer processing uniformly subjects like transactions to the same processing instructions.…
A: EDP is the electronic data processing system which is also known Management information system. It…
Q: The software developers of a billing system of ACME Telecom Company would accept at most an error…
A: An invoice is a time-stamped commercial document that itemizes and documents a transaction between a…
Q: Describe the differences between auditing around the computer and auditing through the computer?…
A: Auditing is the process in which the professional called auditor, performs the audit on the client…
Q: The CARE Corporation uses an IBM mainframe computer system with peripheral optical reader and…
A: Here in this scenario the process of basic accounting work and the financial statement completely…
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- You are conducting substantive tests on the accounts receivable file to verify its accuracy. The file is large, and you decide to test only a sample of the records. Because of the complexity of the database structure, you cannot access the database directly. The client’s systems programmer uses a utility program to write a query that produces a flat file, which he provides for testing purposes. Required Discuss any concerns you would have as an auditor and any actions you would take.Case Study. You are conducting substantive tests on the Accounts Receivable file to verify its accuracy. The file is large, and you decide to test only a sample of records. Because of the complexity of the database structure, you cannot access the database directly. The client’s systems programmer uses a utility program to write a query that produces a flat file, which he provides for testing purposes. Discuss any concerns you would have as an auditor and any actions you would take.Which of the following is an advantage of computer-assisted audit techniques (CAATs)?a. All the CAATs programs are written in one computer language.b. The software can be used for audits of clients that use differing computer equipment and file formats.c. The use of CAATs has reduced the need for the auditor to study input controls for computer-related procedures.d. The use of CAATs can be substituted for a relatively large part of the required testing.
- A primary advantage of using generalized audit software packages to audit the financial statements of a client that uses a computer system is that the auditor may: a.Access information stored on computer files while having a limited understanding of the client’s hardware and software features. b.Consider increasing the use of substantive tests of transactions in place of analytical procedures. c.Substantiate the accuracy of data through selfchecking digits and hash totals. d.Reduce the level of required tests of controls to a relatively small amount.Suppose your company has built a database application that runs on a centralized database, but even with a high-end computer and appropriate indices created on the data, the system is not able to handle the transaction load, leading to slow processing of queries. What would be some of your options to allow the application to handle the transaction load?When an auditor tests the internal controls of a computerized accounting system, which of the following is true of the test data approach? A. Test data are coded to a dummy subsidiary so they can be extracted from the system under actual operating conditions. B. Test data programs need NOT be tailor-made by the auditor for each client's computer applications. C. Test data programs usually consist of all possible valid and invalid conditions reguarding compliance with internal controls. D. Test data are processed with the client's computer and the results are compared with the auditor's predetermined results.
- Which of the following statements is most accurate? a. ERP systems are commercial software packages that are sometimes called turnkey systems because they can be implemented by the user with little or no modification. b. Substantive tests provide evidence focused on the system controls. c. Public accounting firms that provide attest services are not allowed under SOX to offer IT advisory services. d. Both small and large firms that have standardized information needs are potential customers for commercial software. e. External auditors may rely on the work of internal auditors only if they report to the controller or the CEO of the client company.1. Explain how client internal controls can be improved through the proper installation of IT. 2. Distinguish between random error resulting from manual processing and systematic error resulting from IT processing and give an example of each category of error. 3. Explain what is meant by auditing around the computer, and describe what must be present for this approach to be effective in the audit of a client that uses IT to process accounting information. 4. An audit client is in the process of creating an online Web-based sales ordering system for customers to purchase products using personal credit cards for payment. Identify three risks related to an online sales system that management should consider. For each risk, identify an internal control that could be implemented to reduce that risk. 00000000000The increasing use of sophisticated EDP systems has produced significant changes in the accounting environment. The changes are: Documents that are used to enter information into the computer may exist for only a short time or only in computer-readable form. In some computer systems, input documents may not exist at all, because the information is entered directly into the system. Required: Discuss the impact on the internal control system and the independent audit.
- Among the client electronic data processing (EDP) systems listed below, which one can typically undergo an audit without the need for examining or directly testing the EDP computer programs of the system? Select one: a. A system that updates a few essential master files and produces no printed output other than final balances. b. A system that affects a number of essential master files and produces a limited output. c. A system that performs relatively uncomplicated processes and produces detailed output. d. A system that performs relatively complicated processing and produces very little detailed output. Question 8 Not yet answered Marked out of 1 Flag question Question text In the aftermath of the initial stage of examiniAmong the client electronic data processing (EDP) systems listed below, which one can typically undergo an audit without the need for examining or directly testing the EDP computer programs of the system?Select one: a. A system that updates a few essential master files and produces no printed output other than final balances. b. A system that affects a number of essential master files and produces a limited output. c. A system that performs relatively uncomplicated processes and produces detailed output. d. A system that performs relatively complicated processing and produces very little detailed output.Which of the following is NOT an audit technique for auditing computerized AIS? a. Continuous auditing b. All of the above are techniques used to audit computerized AIS c. parallel simulation d. Use of specialized control software
