Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

ITABP > Module 8: Audit Collection Techniques > Flashcards

Module 8: Audit Collection Techniques Flashcards

1
Q

Evidence is any information used by an IS auditor to determine whether the entity or data being audited follows the __ ___ or ____ and ____ ____ ____

A

Established criteria; objectives; supports audit conclusions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Evidence: What should be considered when planning the IS audit with regards to evidence?

A
  1. The type of audit evidence
  2. Its use to meet objectives
  3. Varying levels of reliability
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Evidence: Audit Evidence may include what examples?

A
  1. IS Auditor’s Observation
  2. Notes from Interviews
  3. Results of Independent Confirmations by an IS auditor
  4. Materials extracted from correspondences and internal documentation or contracts with external partners
  5. Results of Test Procedures
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Sources of Evidence: Firsthand information from an original source

A

Primary Information

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Sources of Evidence: What are the characteristics of primary Information?

A
  1. Original
  2. expensive
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Sources of Evidence: Which source of information is not original and expensive

A

Secondary Information

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Sources of Evidence: involves facts about the organization

A

Internal sources

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Sources of Evidence: Involves facts about economies, market, competition

A

External sources

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Sources of Evidence: Internal sources is used in ___ and ____ measurement

A

Planning and performance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Sources of Evidence: Facts about the world outside the organization

A

External Sources

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Sources of Evidence: What are the main examples of secondary sources?

A

Xerox copy of the original file

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Sources of Evidence: Which is more practical to use secondary or primary Information source

A

Secondary. Less expensive and doesn’t take away the reliability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Types of Evidence: Obtained by direct inspection or observation of people, property or events

A

Physical Evidence

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Types of Evidence: Physical evidence may be documented in the form of ____ summarizing the matters inspected or observed, photographs, charts, maps, or actual samples

A

Memoranda

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Types of Evidence: consists of created information

A

Documentary evidence

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Types of Evidence: What are some examples of documentary evidence?

A
  1. Letters
  2. Contracts
  3. Accounting Records
  4. Invoices
  5. Management Information
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Types of Evidence: obtained from others through statements received in response to something

A

Testimonial

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Types of Evidence: Examples of Testimonial evidence include?

A
  1. Inquiries
  2. Questionnaires
  3. Interviews
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Types of Evidence: includes computations, comparisons, reasoning, and separation of information into components

A

Analytical evidence

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Types of Evidence: Which is the most reliable among the types audit evidences?

A

Physical Evidence

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Standards of Audit Evidence: What are the standards of Audit Evidence?

A
  1. Sufficiency
  2. Relevance
  3. Competence
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Standards of Audit Evidence: Sufficiency, Relevance, and Competence tells what about the evidence?

A
  1. Sufficiency: convincing
  2. Relevance: logical
  3. Competence: reliable
23
Q

Standards of Audit Evidence: What happens when audit evidences don’t meet the three standards?

A

Additional corroborative evidence is required before expressing an audit opinion

24
Q

Standards of Audit Evidence - Sufficiency: What is an essential factor in evaluating sufficiency?

A

It must be convincing enough for a prudent person to reach the same conclusion

25
Q

Standards of Audit Evidence - Sufficiency: How does sufficiency apply to sampling methods?

A

When the samples selected provide reasonable assurance that they are representative of the whole population

26
Q

Standards of Audit Evidence - Sufficiency: Rank these evidences from most to least persuasive

  • Auditor’s Observation of auditee’s procedures
  • Externally prepared documents
  • Physical examination
  • Auditor’s inquiry of management
A
  1. Physical Examination
    2.Externally prepared documents
  2. Auditor’s Observation of the Auditee’s procedures
  3. Auditor’s Inquiry of management
27
Q

Standards of Audit Evidence - Relevance: Evidence is relevant to a finding if?

A

It has a logical relationship to that finding

28
Q

Standards of Audit Evidence - Relevance: evidence is ____ with the ___ ____ and supports audit findings and recommendations

A

Consistent; audit objectives

29
Q

Standards of Audit Evidence - Competence: Evidence is competent to the extent that is?

A

Consistent with fact

30
Q

Standards of Audit Evidence - Competence: Evidence that is both ___ and ____ is competent

A

Available and reliable

31
Q

Standards of Audit Evidence - Relevance: Competent information is reliable and the best available through the use of ___ __ ___

A

Appropriate Audit Functions

32
Q

Determinants for Evaluating the reliability of Audit Evidence: What are the determinants?

A
  1. Independence of the provider of evidence
  2. Qualifications of the provide of evidence
  3. Objectivity of the evidence
  4. Timing of the Evidence
  5. Quality of Internal Controls
  6. Source of Evidence
33
Q

Determinants for Evaluating the reliability of Audit Evidence: Evidence obtained from inside the organization is more reliable (T or F)

A

False. Other way around

34
Q

Determinants for Evaluating the reliability of Audit Evidence: Signed contracts or agreements with external parties could be considered reliable if?

A

The original documents are made available

35
Q

Determinants for Evaluating the reliability of Audit Evidence: IS auditor should always consider the qualifications and functional responsibilities of the person (T or F)

A

True

36
Q

Determinants for Evaluating the reliability of Audit Evidence: IS Auditors tests are always reliable (T or F)

A

False. Auditors are subject to qualification requirements

37
Q

Determinants for Evaluating the reliability of Audit Evidence: Auditor’s review of media inventory is less reliable than auditor’s analysis of the efficiency of an application with personnel (T or F)

A

False. Other way around. May interpretation yung efficiency

38
Q

Determinants for Evaluating the reliability of Audit Evidence: An IS auditor should consider the time during which information exists or is
available in determining the nature, timing and extent of
compliance testing and, if applicable, substantive
testing

A

Timing of the evidence

39
Q

Determinants for Evaluating the reliability of Audit Evidence: Evidence from an effective internal controls system is more competent than from weak control (T or F)

A

True

40
Q

Determinants for Evaluating the reliability of Audit Evidence: Evidence from the auditor is less reliable that indirectly obtained evidence (T or F)

A

False. More dapat

41
Q

Gathering Techniques: What are all the gathering techniques

A
  1. Reviewing IS Organization Structures
  2. Reviewing IS policies and procedures
  3. Reviewing IS Standards
  4. Reviewing IS Documentation
  5. Interviewing Appropriate Personnel
  6. Observing processes and employee performance
  7. Reperformance
  8. Walkthroughs
42
Q

Gathering Techniques: In reviewing IS organization techniques, what should the IS auditor do?

A

Gain an understanding and evaluate general organizational controls

43
Q

Gathering Techniques: When reviewing policies and proceudres, what should the IS auditor do?

A
  1. Review if there are appropriate policies in place
  2. Determine if personnel understand and follow
  3. Verify if management assumes full responsibility for policies and procedures
  4. Periodic reviews for appropriateness is carried out
44
Q

Gathering Techniques: in reviewing IS documentation, documentation is either in the form of what?

A

Hard copy or electronically

45
Q

Gathering Techniques: In reviewing IS documentation, what is the first step?

A

understand the existing documentation

45
Q

Gathering Techniques: in reviewing IS documentation, what controls should be in place if documentation is electronic

A

Document integrity

46
Q

Gathering Techniques: in reviewing interviewing appropriate personnel, what is a good approach

A

interview form or checklist

47
Q

Gathering Techniques: in reviewing interviewing appropriate personnel, personnel interviews are ____ in nature and never ___

A

Discovery, accusatory

48
Q

Gathering Techniques: in observing, the auditor must be what?

A

unobtrusive

49
Q

Gathering Techniques: Reperformance generally provides better evidence (T or F)

A

True

50
Q

Gathering Techniques: Reperformance is used when?

A

A combination of inquiry, observation, and examination of evidence does not provide enough assurance

51
Q

Gathering Techniques: Walkthroughs confirms

A

understanding of controls

52
Q

In interviewing and observing personnel, what should you look out for?

A
  1. Actual Functions - how polices are understood and practiced
  2. Actual Procedures - testing physical controls
  3. Security Awareness - practice of preventive and detective controls
  4. Reporting relationships - SoD
53
Q

What are the drawbacks of observation?

A
  1. Observer may interfere with the observed environment
  2. when noticed, may change their usual behavior

ITABP (10 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions