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Flashcards in Information Technology Deck (26):

Controls are redundant to another department

The system does not appear to be reliable and testing controls would not be an efficient use of time

Costs exceed benefit

Auditing and IT
Audit of IT is not required


System isn't complex or complicated

System output is detailed

Auditing and IT
Audit of IT can be performed without directly interacting with the system


Maintains database

Restricts access

Responsible for IT internal control

Auditing and IT
Database Admin


Recommends changes or upgrades

Liaison between IT and users

Auditing and IT
Systems Analyst


Responsible for disc storage

Holds system documentation

Auditing and IT


Uses computer speed to quickly sort data and files- which leads to a more efficient audit

Compatible with different client IT systems

Extracts evidence from client databases

Tests data without auditor needing to spend time learning the IT system in detail

Client-tailored or commercially produced

Auditing and IT
GAS- Generalized Audit Software


Group of related spreadsheets

Retrieves information through Queries

Auditing and IT
Relational Database


A language that defines a database and gives information on database structure.

It maintains tables- which can be joined together.

It establishes database constraints.

Auditing and IT
Data Definition language


Maintains and queries a database

Auditor needs information- so client uses DML to get the information needed

Auditing and IT
Data Manipulation Language


A Data Control Language controls a database and restricts access to the database.

Auditing and IT-Data Control Language


A numerical character consistently added to a set of numbers.

It makes it more difficult for a fraudulent account to be set up or go undetected.

Auditing and IT
Check Digits


A Code Review tests a program's processing logic.

Advantageous because auditor gains a greater understanding of the program.

Auditing and IT
Code Review


Examines data and looks for reasonableness using upper and lower limits to determine if data fits the correct range.

Did anyone score higher than 100%?

Auditing and IT
Limit Test


Auditor processes data with client's computer - fake transactions are used to test program control procedures.

Each control needs to only be tested once

Problem with this method - fake data could combine with real data.

Auditing and IT
Test Data Method


Auditor can review logs to see which applications were run and by whom.

Auditing and IT-Operating Systems Logs


Helpful in online environments

Restricts computer access - may use encryption.

Auditing and IT
Access Security Software


Library Management Software logs any changes to system/applications etc.

Auditing and IT-Library Management Software


Assist with audit calculations

Enable continuous monitoring in an audit environment that is changing

Weakness: requires implementation into the system design

Example: SCARF - Collects information based on some criteria and can be analyzed at a later time (necessary because the audit environment is continually changing)

Auditing and IT
Embedded Audit Modules


An Audit Hook is an application instruction that gives auditor control over the application.

Auditing and IT
Grab Transactions


Transaction Tagging allows logging of company transactions and activities.

Auditing and IT
Tag and Trace


Extended Records add audit data to financial records.

Auditing and IT
Helps create Audit Trails


Destroys prior data when updated

aka Destructive Updating

Requires well-documented Audit Trail

Auditing and IT


If the auditor only audits the outputs of a computer system and doesn't also audit the software applications- an error in the applications could be missed.

Auditing and IT
Systems VS Application output


Software that translates source program (similar to English) into a language that the computer can understand

Auditing and IT


Client data is processed using Generalized Audit Software (GAS)

Sample size can be expanded without significantly increasing the audit cost

GAS output compared to client output

Auditing and IT
Parralel Simulation
Controlled Reprocessing is a form that recreates clients system


Plan the rest of audit- Shorter audit trails that may expire- Less documentation

Assess the level of Control Risk - Unauthorized access to systems or data is more difficult to catch

Systems access controls adds another layer to separation of duties analysis

Focus should be on the general controls- new systems development- current systems changes- and program or data access control or computer ops control changes

Auditing and IT