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Flashcards in Mod 8 Wrong Answers Deck (17):
0

Identify a strategy that a CPA most likely would consider in auditing an entity that processes most of its financial data only in electronic form

Continuous monitoring and analysis of transaction processing with
An embedded audit module

1

Assume an entity processes most of its financial data only in electronic form, this would likely cause a...

2)why?

Decrease in reliance on internal controls that emphasize a
Segregation of duties

2) since so many of the controls are in the hardware and software
Of the application

2

An embedded audit module is inserted within the client's information system to...

Continuously test the processing of transactions

3

Test data

Set of dummy transactions developed by auditor and processed
By client's computer programs

4

In what situation would an auditor introduce test data into a computerized payroll system

Test data with invalid employee ID numbers could be processed
To test whether the program detects them

5

In test data, the dummy transactions are used to determine...

Whether controls which the auditor tests are operating effectively

6

To test proper approval of overtime by supervisors in the payroll system one must determine...2

1 criteria used for system
2 whether supervisors are following critia

7

It is less likely that test proper approval of overtime by supervisors in the payroll system...

Will be included in a computer program

8

An auditor uses test data to determine whether...

Purported controls are actually functioning

9

What is not among the errors which are generally detected by test data an auditor uses?

An auditor would not use test data to test...

Numeric characters in alphanumeric fields

10

Numeric characters are accepted in...

Alphanumeric fields and thus do not represent error conditions

11

Authorization codes may be tested by...

Inputting inappropriate codes

12

What type of computer programs doe auditor's use to assist them in functions such as sorting and merging?

Utility programs

13

A utility program is a standard routine for performing Commonly required processing such as...4

sorting, merging, editing And mathematical routines

14

Compiler programs

Translate programming languages such as COBOL or FORTRAN
to machine language

15

User AKA application programs

Perform specific data processing tasks such as General ledger,
A/P, A/R and payroll

16

Application programs make use of...

Utility routines