1. Audit Planning

Question 1

a systematic examination and evaluation of an organization’s IT
infrastructure, policies, and practices.

Answer 1

information system (IS) audit

Question 2

Goals of An IS Audit: “to ensure that the organization’s ISs are…”

Answer 2

secure, efficient, and aligned with business objectives

Question 3

By conducting IS audits, organizations can…

Answer 3

identify vulnerabilities, mitigate risks, and improve their
IT governance

Question 4

a formal document that outlines the purpose, authority, scope, and objectives of an audit department

Answer 4

Audit Charter

Question 5

True or False: The audit charter doesn’t cover the entire scope of audit activities.

Answer 5

False

Question 6

An audit charter must be approved by _________________.

Answer 6

senior management

Question 7

True or False: Frequent changes in the audit charter can create confusion and lack of clarity about the audit function’s role and responsibilities.

Answer 7

True

Question 8

True or False: procedural aspects should be included in the Audit Charter.

Answer 8

False

Question 9

True or False: Frequent changes to an Audit Charter can reduce the audit team’s effectiveness.

Answer 9

True

Question 10

Why is it advisable to not include details that require frequent adjustment? (such as planning, resource allocation, and other details, such as audit fees and expenses)

Answer 10

Because the charter requires the approval of the board/senior management.

Question 11

True or False: An audit charter should be reviewed at a maximum annually to ensure that it is aligned with business objectives.

Answer 11

False, it should be reviewed at least every year.

Question 12

An audit charter includes the following: (hint; there are five points)

Answer 12

• The mission, purpose, and objective of the audit function
• The scope of the audit function
• The responsibilities of management
• The responsibilities of internal auditors
• The authorized personnel of the internal audit work

Question 13

The initial stage of the audit process. It helps to establish the overall audit strategy and the technique to complete the audit.

Answer 13

Audit planning

Question 14

Audit planning makes the audit process more _________
and ____________oriented.

Answer 14

structured and objective

Question 15

An inventory of all the functions/processes/units in the organization.

Answer 15

Audit universe

Question 16

In a qualitative risk assessment, risk is assessed using qualitative
parameters such as ______, _______, and _____.

Answer 16

high, medium, and low.

Question 17

In a _____________ risk assessment, risk is assessed using numerical
parameters and is quantified

Answer 17

quantitative

Question 18

These are factors that have an impact on risk

Answer 18

Risk factors

Question 19

True or False: if a Risk factor is present, then the risk is decreased.

Answer 19

False, Risk factors raise risk

Question 20

A diagram that shows the structure of an organization and the responsibilities and authorities of various positions and job roles.

Answer 20

An organization chart

Question 21

An audit plan helps to identify and determine the following: (five points)

Answer 21

• objectives
• scope
• periodicity
• team members
• method

Question 22

A well-thought-out audit plan helps the auditor do the following: (four points)

Answer 22

• Focus on high-risk areas
• Identify the required resources for the audit
• Estimate a budget for the audit
• Work to a defined structure, which ultimately benefits the auditor as well as the auditee units

Question 23

The approved audit plan should be communicated promptly to the following groups: (three groups)

Answer 23

• Senior management
• Business functions and other stakeholders
• The internal audit team

Question 24

a specific audit project conducted as part of the overall annual audit plan.

Answer 24

An individual audit assignment

Question 25

Audit Process, Elements of input include:

Answer 25

* knowledge about the organization’s objective * processes and knowledge about regulatory requirements, audit resources, and logistics.

Question 26

Involves the identification and review of policies, standards, and guidelines; setting the audit scope; conducting a risk analysis; and developing an audit approach.

Answer 26

Audit Processing

Question 27

The output of the audit process is the ___________, which includes the auditor’s observations and recommendations.

Answer 27

audit report

Question 28

What is the prime reason for the review of an organization chart?

Answer 28

An IS auditor reviews the organization chart to understand the authority and responsibility of individuals.

Question 29

Who should approve the audit charter of an organization?

Answer 29

Senior Management

Question 30

What should the contents of an audit charter be?

Answer 30

The scope, authority, and responsibilities of the audit function

Question 31

The actions of an IS auditor are primarily influenced by:

Answer 31

Audit Charter

Question 32

Which document provides the overall authority for an auditor to perform an audit?

Answer 32

Audit Charter

Question 33

What is the primary reason for the audit function directly reporting to the audit committee?

Answer 33

The audit function must be independent of the business function and should have direct access to the audit committee of the board

Question 34

Main Risks of Ecommerce Applications

Answer 34

1. Compromise of confidential user data 2. Data integrity issues 3. System unavailability 4. Repudiation of transactions