Personnel who are independent of data input perform parallel simulations

1. These control procedures relate to all computer activities

Application controls
Overall controls
General IT controls
Pervasive controls

2. Auditors usually evaluate the effectiveness of

Sales cycle controls first
Hardware controls first
Application controls first
General controls before application controls

3. Controls which are designed to assure that the information processed by the computer is
valid, complete, and accurate are called
General controls
Output controls
Processing controls
Input controls

4. Preventing someone with sufficient technical skill from circumventing security

procedures and making changes to production programs is best accomplished by
Reviewing reports of job completed
Running test data periodically
Providing suitable segregation of duties
Comparing production programs with independently controlled copies

5. Which of the following statement(s) is(are) correct?

I. Generally, the number of persons involved in the processing of information is
significantly reduced
II. Programs which provide ability to obtain access to and alter data are most often
stored at a separate location apart from data files
II only
Both statements
None of the statements
I only

6. A proper segregation of duties requires

That different individual should handle custody, authorization and recording
That an individual authorizing a transaction should record it also
That an individual maintaining custody of an asset be entitled to access the accounting
records for the asset
 That an individual authorizing a transaction maintain custody of the asset that resulted
from the transaction

7. The objective of understanding that internal control structure and assessing control risk
in an EDP system is
To gain an understanding of the computer hardware and software
To determine if the CPA firm must have an EDP auditor on the team