Flashcards in Mod 8 Wrong Answers Deck (17):
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
Assume an entity processes most of its financial data only in electronic form, this would likely cause a...
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
An embedded audit module is inserted within the client's information system to...
Continuously test the processing of transactions
Set of dummy transactions developed by auditor and processed
By client's computer programs
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
In test data, the dummy transactions are used to determine...
Whether controls which the auditor tests are operating effectively
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
It is less likely that test proper approval of overtime by supervisors in the payroll system...
Will be included in a computer program
An auditor uses test data to determine whether...
Purported controls are actually functioning
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
Numeric characters are accepted in...
Alphanumeric fields and thus do not represent error conditions
Authorization codes may be tested by...
Inputting inappropriate codes
What type of computer programs doe auditor's use to assist them in functions such as sorting and merging?
A utility program is a standard routine for performing Commonly required processing such as...4
sorting, merging, editing And mathematical routines
Translate programming languages such as COBOL or FORTRAN
to machine language
User AKA application programs
Perform specific data processing tasks such as General ledger,
A/P, A/R and payroll