1 When auditing around the computer the independent auditor focuses
1. When auditing around the computer, the independent auditor focuses solely on the source documents and
a. Test data.
b. Computer processing.
c. Compliance techniques.
d. Computer output.

2. In auditing through a computer, the test data method is used by auditors to test the
a. Accuracy of input data.
b. Validity of the output.
c. Procedures contained within the program.
d. Normalcy of distribution of test data.

3. Which of the following methods of testing application controls uses a generalized audit software package prepared by the auditors?
a. Parallel simulation
b. Integrated- test- facility approach
c. Test data approach
d. Exception report tests

4. A primary advantage of using generalized audit software packages in auditing the financial statements of a client that uses a computer system is that the auditor may
a. Substantiate the accuracy of data through self- checking digits and hash totals.
b. Access information stored on computer files without a complete understanding of the client’s hardware and software features.
c. Reduce the level of required compliance testing to a relatively small amount.
d. Gather and permanently store large quantities of supportive evidential matter in machine- readable form.

5. When testing a computerized accounting system, which of the following is not true of the test data approach?
a. Test data are processed by the client’s computer programs under the auditor’s control.
b. The test data must consist of all possible valid and invalid conditions.
c. The test data must consist of only those valid and invalid conditions in which the auditor is interested.
d. Only one transaction of each type need be tested.

6. This flow chart depicts

a. Program code checking.
b. Parallel simulation.
c. Integrated test facility.
d. Controlled reprocessing.

7. In a credit sales and cash receipts system flowchart, the symbol X could represent

a. Auditor’s test data.
b. Remittance advices.
c. Error reports.
d. Credit authorization forms.

8. Which of the following computer- assisted auditing techniques allows fictitious and real transactions to be processed together without client operating personnel being aware of the testing process?
a. Parallel simulation
b. Generalized audit software programming
c. Integrated test facility
d. Test data approach

9. An auditor who is testing information systems controls in a payroll system most likely would use test data that contain conditions such as
a. Deductions not authorized by employees.
b. Overtime not approved by supervisors.
c. Time tickets with invalid job numbers.
d. Payroll checks with unauthorized signatures.

10. An auditor most likely would test for the presence of unauthorized systems program changes by running a
a. Program with test data.
b. Check- digit verification program.
c. Source- code comparison program.
d. Program that computes control totals.
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