13.1 Which of the following is not an advantage of using a master audit program?

a)It will typically shorten the audit program preparation time.

b)It will curb the urge to follow up on ideas outside the scope of the MAP.

c)It will provide guidance for less experienced audit team members.

d)It will lessen the likelihood of omitting significant desirable test procedures.

13.2 Which of the following is not a feature of using a generalised audit software package?

a)It can be used to produce reports in any required format.

b)It can be used to generate a random sample of records using statistical techniques.

c)It must be run on a copy of the production database.

d)It may incorporate artificial intelligence and expert systems characteristics.

13.3 Which of the following is not likely to increase the inherent risk?

a)Director and senior management inexperience.

b)Worsening general economic conditions.

c)Improving foreign exchange rates.

d)External pressures arising from market expectations.

13.4 In a company with fewer than 200 employees, client personnel procedures require that, for all new employees earning over $60 000 per annum, the new employee authorisation form is approved by the personnel manager in writing. As an auditor, how would you test the operation of this control?

a)Inspecting the new employee authorisation forms for all of those employees.

b)Interviewing the personnel manager.

c)Obtaining from the computer system a printout of all new employees and inspecting it.

d)Inspecting the new employee authorisation forms for a sample of those employees.

13.5 Which of the following are classed as application controls?

a)E-commerce controls.

b)Processing controls.

c)Database controls.

d)All of the above are classed as application controls.

13.6 Which of the following is not an access control?

a)Disabling terminated employees' accounts promptly.

b)Storing backup files off-site.

c)Logging inactive users out automatically.

d)Reviewing the access control log.

13.7 Which of the following is not a test to detect schemes to fraudulently increase profit?

a)Looking for an abnormal number of credits issued in the last month of a financial year.

b)Overvaluing or double-counting inventory.

c)Checking for vendor invoices covering transactions occurring in the 'old year' not brought to account until the 'new year'.

d)Failing to write off inventory which has been discarded, stolen or scrapped.

13.8 An analytical review may involve identifying relationships:

a)by comparing this client's data for the current year with industry norms.

b)within the same client database for the current year.

c)by comparing this client's data for the current year with this client's data in prior time periods.

d)all of the above.

13.9 Sarbanes-Oxley Act requirements include:

a)a prohibition on the audit firm carrying out non-audit services.

b)mandatory rotation of lead audit partners.

c)an internal control report including a statement of management's responsibility for establishing and maintaining adequate internal control.

d)all of the above.