1. IT has several significant effects on an organization.

Which of the following would not be

easy important from an auditing perspective?

d a. Organizational changes.
b. The visibility of information.
c. The potential for material misstatement.
d. None of the above; i.e., they are all important.

2. The audit procedure which is least useful in gathering evidence on significant computer
easy processes is:
b a. documentation.
b. observation.
c. test decks.
d. generalized audit software.

3. Which of the following is not a benefit of using IT-based controls?

easy a. Ability to process large volumes of transactions.
d b. Ability to replace manual controls with computer-based controls.
c. Reduction in misstatements due to consistent processing of transactions.
d. Over-reliance on computer-generated reports.

4. One significant risk related to an automated environment is that auditors may ____ information
easy provided by an information system.
b a. not place enough reliance on
b. place too much reliance on
c. reveal
d. not understand

5. Which of the following is not a risk specific to IT environments?

easy a. Reliance on the functioning capabilities of hardware and software.
b b. Increased human involvement.
c. Loss of data due to insufficient backup.
d. Reduced segregation of duties.
6. Program documentation is a control designed primarily to ensure that
a. Programmers have access to the tape library or information on disk files
b. Programs do not make mathematical errors
c. Programs are kept up to date and perform as intended
d. No one has made use of the computer hardware for personal reasons

7. Alex, Inc. is in the process of designing a new sales order processing system. The
data processing department has completed the process of design, programming, and
debugging. Before it is placed in operation, the computer processing department
should test the program using not only typical data but also
a. Incorrect or incomplete data
b. Live data
c. Source data
d. Debug data

8. Which one of the following control functions is not the responsibility of the input-
output control group of the data processing department?
a. Review of the efficiency and effectiveness of systems design
b. Scanning the console log
 c. Review and distribution of computer output and resolution of control totals
d. Maintenance of an error log

9. When erroneous data are detected by computer program controls, such data may be
excluded from processing and printed on an error report. This error report should be
reviewed and followed up by the
a. Supervisor of Computer Operations
b. Systems analyst
c. Application owner
d. Computer programmer

10. The online data entry control called preformatting is:

a. A program initiated prior to regular input to discover errors in data before
entry so that the errors can be corrected.
b. A check to determine if all data items for a transaction have been entered
by the terminal operator.
c. A series of requests for required input data that requires an acceptable
response to each request before a subsequent request is
made.
d. The display of a document with blanks for data items to be entered by the
terminal operator.