Principles Of Auditing & Other Assurance Services
21st Edition
ISBN: 9781259916984
Author: WHITTINGTON, Ray, Pany, Kurt
Publisher: Mcgraw-hill Education,
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Chapter 8, Problem 29COQ
To determine
Identify the appropriate answer related to the party which reviews the exceptional report.
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Controls used in the management of a computer center to minimize the possibility of using an incorrect file or program area. Control totals.b. Record counts.c. Limit checks.d. External labels.
The installation of a database management system is likely to have the least impact ona. data redundancy.b. entity-wide sharing of common data.c. exclusive ownership of data.d. the logic needed to solve a problem in an application program.e. the internal controls over data access.
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.
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D. Test data are processed with the client's computer and the results are compared with the auditor's predetermined results.
Chapter 8 Solutions
Principles Of Auditing & Other Assurance Services
Ch. 8 - List and describe the major components of an...Ch. 8 - Prob. 2RQCh. 8 - Prob. 3RQCh. 8 - Prob. 4RQCh. 8 - Prob. 5RQCh. 8 - Distinguish general control activities from...Ch. 8 - Prob. 7RQCh. 8 - Prob. 8RQCh. 8 - Prob. 9RQCh. 8 - Prob. 10RQ
Ch. 8 - Prob. 11RQCh. 8 - Prob. 12RQCh. 8 - Prob. 13RQCh. 8 - What is the difference between an Internet-based...Ch. 8 - Prob. 15RQCh. 8 - Prob. 16RQCh. 8 - Prob. 17RQCh. 8 - Prob. 18RQCh. 8 - Prob. 19RQCh. 8 - Prob. 20RQCh. 8 - Prob. 21RQCh. 8 - Prob. 22QRACh. 8 - Prob. 23QRACh. 8 - Prob. 24QRACh. 8 - Prob. 25QRACh. 8 - Prob. 26QRACh. 8 - Prob. 27QRACh. 8 - Prob. 28QRACh. 8 - Prob. 29AOQCh. 8 - Prob. 29BOQCh. 8 - Prob. 29COQCh. 8 - Prob. 29DOQCh. 8 - When an online real-time (OLRT) IT processing...Ch. 8 - Prob. 29FOQCh. 8 - Prob. 29GOQCh. 8 - Prob. 29HOQCh. 8 - Prob. 29IOQCh. 8 - Prob. 29JOQCh. 8 - Prob. 29KOQCh. 8 - Prob. 29LOQCh. 8 - Prob. 30OQCh. 8 - Prob. 31OQCh. 8 - For each definition (or partial definition) in the...Ch. 8 - Prob. 33PCh. 8 - Prob. 34PCh. 8 - Prob. 35PCh. 8 - Prob. 36PCh. 8 - Prob. 37PCh. 8 - Prob. 38ITC
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- Which of the following statements most likely represents a control consideration for anentity that performs its accounting using mobile computing devices?a. It is usually difficult to detect arithmetic errors.b. Unauthorized persons find it easy to access the computer and alter the data files.c. Transactions are coded for account classifications before they are processed on thecomputer.d. Random errors in report printing are rare in packaged software systems.arrow_forwardThe client’s computerized exception reporting system helps audit teams conduct a moreefficient audit because ita. Condenses data significantly.b. Highlights abnormal conditions.c. Decreases the necessary level of tests of computer controls.d. Is an efficient computer input control.arrow_forwardAmong 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 examiniarrow_forward
- 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.arrow_forward1. _____ are controls that do not rely on the client's information technology (IT) environment for their operation. a. IT general controls (ITGCs) b. Automated controls c. Computer application controls d. Manual controls 2. Assessing control risk begins with understanding entity-level controls. a. True b. Falsearrow_forwardAssertion Associations. Exhibit 7.64.1 contains an arrangement of examples of transaction errors (lettered a–g) and a set of client control procedures and devices (numbered 1–15).Required:For each error/control objective, identify the assertion about classes of transactions and events most benefited by the control.arrow_forward
- In auditing program change control, the IT auditor will: a. Not need to inspect program authorization forms for signatures b. Ensure an organization is following the process described in their documentation for program change control c. Make sure that only computer programmers move their own changes into a production environment d. Make sure that only computer programmers have tested the changes they made to programsarrow_forwardAuditors of ERP systemsa. need not be concerned about segregation of duties because these systems possess strong computer controls.b. focus on output controls such as independent verification to reconcile batch totals.c. are concerned that managers fail to exercise adequate care in assigning permissions.d. do not see the data warehouse as an audit or control issue at all because financial records are not stored there.e. need not review access levels granted to users because these are determined when the system is configured and never change.arrow_forwardWhich of the following is least likely to be a general control over computer activities? a. Procedures for developing new programs and systems b. Requirements for system documentation c. An access control d. A control total Required: choose the correct answer and Justify your answers in at least 6 sentences.arrow_forward
- The 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.arrow_forwardWhich of the following is NOT part of the systems implementation process? a. converting databases b. documentation c. systems design d. testing and correctionarrow_forwardAssumes that when conducting procedures to obtain an understanding of the control structure in the Fiona Company, you checked “NO” to the following internal control questionnaire items: Does access to on-line files requires specific passwords to be entered to identify and validate the terminal user? Are control totals established by the user prior to submitting data for processing? (order entry application subsystem). Are input control totals reconciled to output control totals? (Order entry application sub system). Required: Describe the errors, irregularities, or misstatements that could occur due to the weaknesses indicated by the lack of controls.arrow_forward
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