Multiple Choice Questions
Select the best answer for each of the following questions. Explain the reasons for your selection.
a. LAN is the abbreviation for:
(1) Large Area Network.
(2) Local Area Network.
(3) Longitudinal Analogue Network.
(4) Low Analytical Nets.
b. End user computing is most likely to occur on which of the following types of computers?
(2) Decision support systems.
(3) Personal computers.
(4) Personal reference assistants.
c. When erroneous data are detected by computer program controls, data may be excluded from processing and printed on an exception report. The exception report should probably be reviewed and followed up by the:
(1) Data control group.
(2) System analyst.
(3) Supervisor of IT operations.
(4) Computer programmer.
d. An accounts payable program posted a payable to a vendor not included in the online vendor master file. A control which would prevent this error is a:
(1) Validity check.
(2) Range check.
(3) Limit test.
(4) Control total.
e. When an online real-time (OLRT) IT processing system is in use, internal control can be strengthened by:
(1) Providing for the separation of duties between data input and error handling operations.
(2) Attaching plastic file protection rings to reels of magnetic tape before new data can be entered on the file.
(3) Making a validity check of an identification number before a user can obtain access to the computer files.
(4) Preparing batch totals to provide assurance that file updates are made for the entire input.
f. The auditors would most likely be concerned with which of the following controls in a distributed data processing system?
(1) Hardware controls.
(2) Systems documentation controls.
(3) Access controls.
(4) Disaster recovery controls.
g. The auditors would be least likely to use software to:
(1) Access client data files.
(2) Prepare spreadsheets.
(3) Assess computer control risk.
(4) Construct parallel simulations.
h. Auditors often make use of computer programs that perform routine processing functions such as sorting and merging. These programs are made available by IT companies and others and are referred to as:
(1) Compiler programs.
(2) Utility programs.
(3) User programs.
(4) Supervisory programs.
i. Which of the following is least likely to be considered by the auditors considering engagement of an information technology specialist on an audit?
(1) Complexity of the client’s systems and IT controls.
(2) Number of financial institutions at which the client has accounts.
(3) Client’s use of emerging technologies.
(4) Extent of the client’s participation in electronic commerce.
j. Which of the following is an advantage of generalized audit software packages?
(1) They are all written in one identical computer language.
(2) They can be used for audits of clients that use differing computing equipment and file formats.
(3) They have reduced the need for the auditor to study input controls for computer-related procedures.
(4) Their use can be substituted for a relatively large part of the required tests of controls.
k. The increased presence of user operated computers in the workplace has resulted in an increasing number of persons having access to the system. A control that is often used to prevent unauthorized access to sensitive programs is:
(1) Backup copies of data on diskettes.
(2) User identification passwords.
(3) Input validation checks.
(4) Record counts of the number of input transactions in a batch being processed.
l. An auditor will use the computer test data method in order to gain assurances with respect to the:
(1) Security of data in a system.
(2) IT system capacity.
(3) Controls contained within a program.
(4) Degree of data entry accuracy for batch input data.