40) Controls specific to IT include all of the following except for

A) adequately designed input screens. B) validation tests of input accuracy.

C) pull-down menu lists. D) separation of duties.

41) Auditing by testing automated internal controls and account balances electronically, generally because effective general controls exist, is known as A) parallel simulation testing. B) embedded audit module approach.

C) auditing through the computer. D) auditing around the computer.

42) What type of test is used to obtain the most types of evidence?

A) risk assessment tests B) substantive tests of transactions

C) tests of details of balances D) tests of controls

43) Which items affect the sufficiency of evidence when choosing a sample?

A)

Selecting items with a high likelihood of misstatement	The randomness of the items selected
No	Yes

B)

Selecting items with a high likelihood of misstatement	The randomness of the items selected
Yes	No

C)

Selecting items with a high likelihood of misstatement	The randomness of the items selected
Yes	Yes

D)

Selecting items with a high likelihood of misstatement	The randomness of the items selected
No	No

44) Amounts involving fraud are usually considered ________ important than unintentional errors of equal dollar amounts. 44) ______

A) less B) no less C) no more D) more

45) Risk of material misstatement at the assertion level

A) is only relevant to account balances.

B) consists of business risk and inherent risk.

C) refers to risks that are pervasive to the financial statements as a whole.

D) determines the nature, timing, and extent of further audit procedures.