Acctg. 325 - PF Quiz#2

Acctg.
325 - PF Quiz#2
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Acctg. 325 - PF Quiz#2

Western Institute of Technology College
of Business and Accountancy 2nd
Semester, A.Y. 2020-2021 Acctg. 325 -
Auditing in CIS Environment
PF Quiz #2
General Instructions:
1. Please answer independently.
2. Cheating is strictly prohibited. Be responsible for your action.
3. This is not an open book or google search examination/test.
4. Submit on the specified due time, a 5 minutes allowance will be given in consideration of the internet
interruption in submitting your exam. After 5 minutes extension, 5 points will be deducted from your total raw
score.
5. All instructions above are irrevocable and final.
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Control procedures within the EDP activity may leave no visible evidence indicating that the
procedures were performed. In such instances, the auditor should test these controls by
Making corroborative inquiries.
Observing the separation of duties of personnel.

Reviewing transactions submitted for processing and comparing them to related output.
Reviewing the run manual
Auditing through the computer must be used when
Input transactions are batched and system logic is straightforward.
Processing primarily consists of sorting the input data and updating the master file sequentially.
Processing is primarily online and updating is real-time.
Generalized audit software is not available.
When auditing a stand-alone minicomputer rather than a large-scale computer system, the
internal auditor will
Have to write a tailored program to access data.
Have to use audit techniques different from those used for a large computer configuration and perform more
substantive tests.
Expect to find systems controls different from those in a larger computer system.
Often be able to audit around the computer.
A manufacturing company uses a batch-processing computer system to process its payroll. An

internal auditor plans to perform a test of control to determine whether specific programmed
controls in the payroll program are functioning. Which of the following audit techniques would be
most appropriate to this task?
Review of a listing of the payroll program source code.
Development and use of a test deck of payroll data.
Use of a generalized audit software package to test balances in the payroll file.
Use of a generalized audit software package to reprocess a batch of actual payroll data.
When an auditor tests a computerized accounting system, which of the following is true of the
test data approach?
Test data must consist of all possible valid and invalid conditions.
The program tested is different from the program used throughout the year by the client.
Several transactions of each type must be tested.
Test data are processed by the client’s programs under the auditor’s control.
The following flowchart depicts:
Program code checking
Parallel simulation
Integrated test facility
Controlled reprocessing
Parallel simulation would be an appropriate audit approach for
Testing for the presence of authorized signatures on documents.

Summarizing the results of accounts receivable confirmation work.
Calculating amounts for declining-balance depreciation charges.
Scanning the general ledger file for unusual transactions.
An approach to testing real-time processing of a computer-based information system is known as

the integrated test facility (ITF) technique. This approach involves
Setting up a small set of records for a fictitious entity in the master files, and them processing dummy
transactions against the fictitious entity.
Running monthly activities simultaneously with current transactions so that the two are integrated in the results
of the test.
Using generalized audit software to integrate the testing along with processing regular transactions.
Validating as well as editing of all input transactions entering the real-time system.
In auditing an online perpetual inventory system, an auditor selected certain file updating
transactions for detailed testing. The audit technique which will provide a computer trail of all
relevant processing steps applied to a specific transaction is described as
Simulation
Snapshot
Code comparison
Tagging and tracing
Matthews Corp. has changed from a system of recording time worked on clock cards to a
computerized payroll system in which employee’s record time in and out with magnetic cards. The
EDP system automatically updates all payroll records. Because of this change
A generalized computer audit program must be used.
Part of the audit trail is altered.
The potential for payroll-rented fraud is diminished.
Transactions must be processed in batches.

Auditors often make use of computer programs that perform routine processing functions, such
as sorting and merging. These programs are made available by electronic data processing
companies and others and are specifically referred to as
Compiler programs
Supervisory programs
Utility programs
User programs
The applications of auditing procedures using the computer as an audit tool refer to
Auditing through the computer
Data-based management system
Computer assisted audit techniques
Whether or not a real time program contains adequate controls is most effectively determined by
the use of
Audit software
An integrated test facility
A tracing routine
A traditional test deck
Auditing by testing the input and output of an EDP system instead of the computer program itself
will
Not detect program errors which do not show up in the output sampled.
Detect all program errors, regardless of the nature of the output.

Provide the auditor with the same type of evidence.
Not provide the auditor with confidence in the results of the auditing procedures.
Which of the following computer-assisted auditing techniques allows fictitious and real
transactions to be processed together without client operating personnel being aware of the
testing process?
Input controls matrix
Parallel simulation
Data entry monitor
Which of the following methods of testing application controls utilizes a generalized audit
software package prepared by the auditors?
Parallel simulation
Integrated testing facility approach
Test data approach
Exception report tests
The output of a parallel simulation should always be
Printed on a report.
Compared with actual results manually.
Compared with actual results using a comparison program.
Reconciled to actual processing output.
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Google Forms <[email protected]> Thu, Apr 22, 2021 at 09:05

Thanks for ﬁlling out Acctg. 325 - PF Quiz#2

Acctg. 325 - PF Quiz#2

Making corroborative inquiries.

Observing the separation of duties of personnel.

Reviewing the run manual

Auditing through the computer must be used when

Input transactions are batched and system logic is straightforward.

Processing is primarily online and updating is real-time.

Generalized audit software is not available.

Have to write a tailored program to access data.

Often be able to audit around the computer.

A manufacturing company uses a batch-processing computer system to process its payroll. An

Review of a listing of the payroll program source code.

Development and use of a test deck of payroll data.

Several transactions of each type must be tested.

The following ﬂowchart depicts:

Program code checking

Integrated test facility

Parallel simulation would be an appropriate audit approach for

Testing for the presence of authorized signatures on documents.

Calculating amounts for declining-balance depreciation charges.

Scanning the general ledger ﬁle for unusual transactions.

An approach to testing real-time processing of a computer-based information system is known as

Tagging and tracing

A generalized computer audit program must be used.

Part of the audit trail is altered.

The potential for payroll-rented fraud is diminished.

Transactions must be processed in batches.

Integrated test facility

Auditing through the computer

Data-based management system

Computer assisted audit techniques

An integrated test facility

A traditional test deck

Detect all program errors, regardless of the nature of the output.

Integrated test facility

Input controls matrix

Data entry monitor

Integrated testing facility approach

Test data approach

Exception report tests

The output of a parallel simulation should always be

Compared with actual results manually.

Compared with actual results using a comparison program.

Reconciled to actual processing output.

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