Mod 8 Wrong Answers Flashcards Preview

Yaeger AUD > Mod 8 Wrong Answers > Flashcards

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


Test data

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?

Utility programs


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

sorting, merging, editing And mathematical routines


Compiler programs

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


Application programs make use of...

Utility routines