QUIZ MULTIPLE CHOICE/ IDENTIFICATION

1. The following are the advantages of computer information system except:

a. Easier to have instant data processing compared to manual data processing.

b. High cost for companies as effective electronic data processing software tends to be
expensive.

c. Increase performances especially in manufacturing industries and related industries

due to improved the inventory automated systems.

d. More accurate and effective time of transactions.

2. The audit approach in which the auditor runs his/her own program on a controlled
basis in order to verify the client's data recorded in a machine language is

A. The test data approach

B. The generalized audit software approach

C. The microcomputer-aided auditing approach

D. Hold auditing around the computer

3. An important characteristic of CIS is uniformity of processing. Therefore, a risk exists

that:

a. Auditors will not be able to process data quickly.

b. Auditors will not be able to determine if data is processed consistently.

c. Erroneous processing can result in the accumulation of a great number of

misstatements in a short period of time.

d. All of the above.

4. Computer programs designed to assist in examining and testing clients' accounting

records. __________.
5. Primarily designed to test the effectiveness of internal control procedures which are
incorporated in the clients computer program is ________.

6. This audit software is used to gather information at predetermined points in a system.

7. A type of computer fraud wherein computer programs are modified to inappropriately

round off calculations to the benefit of the fraud perpetrator.

8. These are are computer programs and which the auditor uses a part of the audit
procedures to process data of audit significance contained in an entitys information
system.

9. Is a single set of hardware, software, databases, telecommunications, people and

procedures that are configured to collect, manipulate, store, and process data into
relevant information

10. Person who is responsible for the establishment and implementation of appropriate
internal control systems.

11. A computer fraud in which an unauthorized program placed within an authorized

one.

12. The auditor should obtain an understanding including these matters:

a. The significance and complexity of computer processing in each significant

accounting application.

b. Organizational structure of clients CIS activities

c. The availability of data

d. All of these.

13. One of the techniques wherein the auditor crates dummy or fictitious employee or
other appropriate unit for testing within the entitys computer system.

14. This technique uses audit software embedded in the clients system, called an
embedded audit module, to gather information at predetermined points in a system.
15. Which of the following is not a risk specific to CIS environments?

a. reliance on the functioning capabilities of hardware and software

b. increased human involvement

c. loss of data due to insufficient back up

d. unauthorized access

16. Which of the following is not a risk in a CIS?

a. Need for CIS experienced staff

b. separation of CIS duties from accounting functions

c. improved audit trail

d. hardware and data vulnerability

17. Which of the following activities would most likely be performed in the CIS
department?

a. Initiation of changes to master records

b. Conversion of information to machine-readable form

c. Correction of transactional errors

d. Initiation of changes to existing applications.

18. Passwords for microcomputer software programs are designed to prevent:

a. Inaccurate processing of data

b. Unauthorized access to computer

c. Incomplete updating of data files

d. Unauthorized use of the software

19. When an auditor tests a computerized accounting system, which of the following is
true of the test data approach

A. Several transactions of each type must be tested

B. Test data must consist of all possible valid and invalid conditions

C. The program tested is different from the program used through out the year by the
client

D. Test data should include data that the client's system should accept or reject

20. A primary reason auditors are reluctant to use an ITF is that it requires them to

A. Reserve specific master file records and process them at regular intervals

B. Collect transaction and master file records in a separate file

C. Notify user personnel so they can make manual adjustments to output

D. Identify and reverse the fictitious entries to avoid contamination of the master file.

ENUMERATION:

1-6 Characteristics of CIS

7-10. Major types of Computer fraud

11-17. steps in the use of an audit workstations

17-20. Give at least 4 CAATs