13. A computer input control is designed to ensure that:

Multiple Choice

• Machine processing is accurate.
• Only authorized personnel have access to the computer area.
• Data received for processing are properly authorized and converted to machine-readable form.
• Computer processing has been performed as intended for the particular application.

14. In the weekly computer run to prepare payroll checks, a check was printed for an employee who had been terminated the previous week. Which of the following controls, if properly utilized, would have been most effective in preventing the error or ensuing its prompt detection?

Multiple Choice

• A control total for hours worked, prepared from time cards collected by the timekeeping department.
• Requiring the treasurer's office to account for the numbers of the prenumbered checks issued to the computer department for the processing of the payroll.
• Use of a check digit for employee numbers.
• Use of a header label for the payroll input sheet.

15. Substantive procedures that cannot be performed with generalized audit software include:

Multiple Choice

• Performing certain analytical procedures, such as inventory turnover.
• Observing inventory.
• Recomputing depreciation.
• Selecting audit samples.

16. Which of the following testing techniques minimizes the possibility that the auditors will contaminate a client's financial records?

Multiple Choice

• Test data.
• Integrated test facilities.
• Controlled programs.
• Tagging and tracing transactions.

17. A company's labor distribution report requires extensive corrections each month because of labor hours charged to inactive jobs. Which of the following data processing input controls appears to be missing?

Multiple Choice

• Completeness test.
• Validity test.
• Limit test.
• Control total.

18. Usernames, passwords, and identity cards are examples approaches to:

Multiple Choice

• Processing controls.
• Manual input controls.
• Authorization.
• Firewalls.

19. Which of the following is likely to be of least importance to an auditor in considering the internal control in a company with computer processing?

Multiple Choice

• The segregation of duties within the computer center.
• The control over source documents.
• The documentation maintained for accounting applications.
• The cost/benefit of data processing operations.

20. Online business may use any of the following methods to prevent unauthorized users from accessing proprietary information except:

Multiple Choice

• Password management.
• Data encryption.
• Biometric identifiers.
• Batch processing.

21. A data warehouse is an example of:

Multiple Choice

• Online analytical processing.
• Online transaction processing.
• Essential information batch processing.
• Decentralized processing.

22. A system in which hardware and software are not only linked together, but are also very dependent upon each other is referred to as:

Multiple Choice

• A system with weak internal control.
• Equipment combination.
• Tightly coupled.
• Offline development.

23. A fast-growing service company is developing its information technology internally. What is the first step in the company's systems development life cycle?

Multiple Choice

• Analysis.
• Implementation.
• Testing.
• Design.

24. An audit client outsources portions of its IT system to a cloud service provider. Which type of report would document management's description of the service organizations system and operating effectiveness of controls?

Multiple Choice

• Change request report.
• Type 1 report.
• Type 2 report.
• Operational Excellence (OE) report.

25. The completeness of computer generated sales figures can be tested by comparing the number of items listed on the daily sales report with the number of items billed on the actual invoices. This process uses:

Multiple Choice

• Self-checking numbers.
• Control totals.
• Validity tests.
• Process tracing data.