CHAPTER 8

Question 1

Most audit testing occurs in the ______________ phase of the audit.

Answer 1

Substantive-testing

Question 2

Uses of Substantive Tests [DDCS]

Answer 2

1. Determining the correct value of inventory
2. Determining the accuracay of prepayments and accurals.
3. Confirming accounts receivable with customers.
4. Searching for unrecorded liabilities.

Question 3

2 General Categories of CAATTS [OA]

Answer 3

1. Organization
2. Access Method

Question 4

refers to the way the records are PHYSICALLY ARRANGED on the secondary storage device. This may be either sequential or random.

Answer 4

Organization

Question 5

is the technique used to LOCATE records and to NAVIGATE through the database or file

Answer 5

Access Method

Question 6

describes an environment in which individual data files are NOT INTEGRATED with other files.

Answer 6

Flat-file Model

Question 7

typically called the SEQUENTIAL access method. All records i the file lie in contiquous storage spaces in a specified sequence (ascending or descending) arranged by their primary key.

Answer 7

Sequential Structure

Question 8

is so named because, in addition to the actual data file, there exists a separate INDEX that is itself a file or record addresses.

Answer 8

Indexed Structure

Question 9

Virtual Storage Access Method (VSAM)

Answer 9

• is used for very large files that require routine batch
processing and a moderate degree of individual
record processing.

• is used for files that often occupy several cylinders
of contiguous storage on a disk.

Question 10

VSAM File - 3 Physical Components [IPO]

Answer 10

1. Indexes
2. Prime Data Storage
3. Overflow Area

Question 11

employs an ALGORITHM that converts the primary key of a record directly into a storage address.

Answer 11

Hashing Structure

Question 12

Principal advantage of hashing is

Answer 12

access speed

Question 13

Two significant disadvantages of hashing

Answer 13

(1) Does not use storage space efficiently

(2) Different record keys may generate the
same (or similar) residual, which translates
into the same address. This is called a
collision.

Question 14

Different record keys may generate the
same (or similar) residual, which translates
into the same address.

Answer 14

Collision

Question 15

is used to create a LINKED LIST file. This approach stores in a field of one record the address (pointer) of a related record.

Answer 15

Pointer Structure

Question 16

may also be used to LINK records between files.

Answer 16

Pointers

Question 17

3 Types of Pointers [PRL]

Answer 17

1. Physical Address Pointer
2. Relative Address Pointer
3. Logical Key Pointer

Question 18

contains the ACTUAL disk storage location recorded by the disk controller. It bear no logical relationship to the records they identify

Answer 18

Physical Address Pointer

Question 19

contains the RELATIVE position of a record in the file

Answer 19

Relative Address Pointer

Question 20

contains the PRIMARY KEY of the related record

Answer 20

Logical Key Pointer

Question 21

are BASED on the INDEXED SEQUENTIAL file structure

Answer 21

Relational Database

Question 22

MULTIPLE indexes can be used to create a cross-reference which allows even more FLEXIBLE access to data

Answer 22

Inverted List

Question 23

E. F. Codd originally proposed the principles of the relational model in the late 1960s

Answer 23

Relational Database Theory

Question 24

A System is Relational if it:

Answer 24

1. Represents data in the form of two-dimensional
   tables.
2. Supports the relational algebra functions of
   restrict, project, and join.

Question 25

3 Algebra Functions [RPJ]

Answer 25

1. Restrict 2. Project 3. Join

Question 26

extracts specified ROWS from a specified table

Answer 26

Restrict

Question 27

extracts specified ATTRIBUTES (COLUMNS) from a table to create a virtual table

Answer 27

Project

Question 28

Builds a NEW physical TABLE from two tables consisting of all concentrated pairs of rows, from each table

Answer 28

Join

Question 29

is anything about which the organization wishes to CAPTURE DATA. It may physical, such as inventories, customers, or employees.

Answer 29

Entity

Question 30

is the BLUEPRINT for ultimately creating the physical database

Answer 30

Data Model

Question 31

The GRAPHICAL representation used to DEPICT the model

Answer 31

Entity Relationship Diagram

Question 32

used to describe the number of INSTANCES or records that pertain to a specific entity

Answer 32

Occurrence

Question 33

are the data elements that DEFINE an entity

Answer 33

Attributes

Question 34

The labeled line CONNECTING TWO ENTITIES in a data model describes the nature of association

Answer 34

Associations

Question 35

is the DEGREE of association between two entities. It describes the number of possible occurrences in one table that are associated witha single occurrence in a related table

Answer 35

Cardinalities

Question 36

4 Basic Forms of Cardinalites [ZOZO]

Answer 36

1. Zero or One (0,1) 2. One and Only One (1,1) 3. Zero or Many (0,M) 4. One or Many (1,M)

Question 37

are constructed from the data model with each entity in the model being transformed into a SEPARATE PHYSICAL table.

Answer 37

Physical Database tables

Question 38

set of data that a particular USER SEES.

Answer 38

User view

Question 39

Such tables that exhibit NEGATIVE operational symptoms

Answer 39

Anomalies

Question 40

3 Kinds of Anomalies [UID]

Answer 40

1. Update Anomaly 2. Insertion Anomaly 3. Deletion Anomaly

Question 41

results from data REDUNDANCY in an unnormalized table

Answer 41

Update Anomaly

Question 42

data CANNOT be ADDED to the table

Answer 42

Insertion Anomaly

Question 43

involves the unintentional DELETION of data from a table

Answer 43

Deletion Anomaly

Question 44

3 Structural Problems within Tables called Dependencies [RPT]

Answer 44

1. Repeating Groups 2. Partial Dependencies 3. Transitive Dependencies

Question 45

involves identifying and REMOVING structural dependencies from the table(s) under review

Answer 45

Normalization Process

Question 46

is a TECHNICAL MATTER that is usually the responsibility of systems professionals

Answer 46

Database Normalization

Question 47

6 Phases of Database Design / View Modeling : [ ICANCP]

Answer 47

1. Identify entities 2. Construct a data model showing entity associations 3. Add primary keys and attributes to the model 4. Normalize the data model and add foreign keys 5. Construct the physical database 6. Prepare he user views

Question 48

begins by IDENTIFYING the primmary entities of the business function in question

Answer 48

Identify entities

Question 49

Determine the associations between entities and document them with an ER diagram

Answer 49

Construct a data model showing entity associations

Question 50

is a user view derived from the INVENTORY and supplier entities

Answer 50

Inventory Status Report

Question 51

a user program where SQL commands will be saved

Answer 51

Query

Question 52

combining the data needs of all users into a single SCHEMA or enterprise-wide view

Answer 52

View Integration

Question 53

also known as continuous auditing. It is to identify important transactions while they are being processed and extract copies of them in real time

Answer 53

Embedded Audit Module (EAM)

Question 54

2 Diadvantages of EAMs (OV)

Answer 54

1. Operational Efficiency 2. Verifying EAM Integrity

Question 55

The presence of an audit module within the host application may create significant overhead

Answer 55

Operational Efficiency

Question 56

The EAM approach may not be a viable audit technique in environments with a high level of program maintenance

Answer 56

Verifying EAm Integrity

Question 57

is the MOST WIDELY USED CAATT for IS auditing. It allows auditors to access electronically coded data files and perform various operations on their cotents

Answer 57

Generalized Audit Software (GAS)

Question 58

was designed as a META-LANGUAGE for auditors to access data stored in various digital formats and to test them comprehensively.

Answer 58

Audit Command Language (ACL)

Question 59

ACL's feature that has the ability to READ DATA stores in most forms

Answer 59

Data definition

Question 60

allows the auditor to DEFINE important characteristics of the source file

Answer 60

Data Definition Screen

Question 61

is simply a way of LOOKING at data in a file. Auditors seldom need to use all the data contained in a file

Answer 61

View

Question 62

are EXPRESSIONS that search for records that meet the filter criteria

Answer 62

Filters

Question 63

allows the auditor to use logical operators such as AND, OR, <, >, NOT and others to define and test codnitions of any complexity and to process only those records that match specific conditions.

Answer 63

Expression Builder

Question 64

allows the auditor to view the distribution of records that fall into specified strata.

Answer 64

ACL's Stratification Feature

Question 65

2 Sampling Methods for Stratical Analysis : (RM)

Answer 65

1. Record Sampling 2. Monetary Unit Sampling (MUS)