Auditing and Assurance Services In

Australia 9th Edition Arens Test Bank

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Exam

Name___________________________________

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

1) Which of the following is an enhancement to internal control resulting from integrating IT into 1)
accounting systems?
A) Computer controls replace manual ones B) Higher quality information
C) Both A and B D) Neither A nor B
Answer: C
Explanation: A)
B)
C)
D)

2) Which one of the following computer-assisted auditing techniques allows fictitious and real 2)
transactions to be processed together without client operating personnel being aware of the testing
process?
A) Test data approach B) Generalised audit software programming
C) Integrated test facility D) Parallel simulation
Answer: C
Explanation: A)
B)
C)
D)

3) A control which relates to all parts of the IT system is called: 3)

A) a systems control. B) an applications control.
C) a universal control. D) a general control.
Answer: D
Explanation: A)
B)
C)
D)

4) To obtain evidence that all external users in an e-commerce system are authorised, a 'firewall' 4)
channels all network connections through a:
A) separate computer service bureau. B) control gateway.
C) single telephone line. D) single computer monitor.
Answer: B
Explanation: A)
B)
C)
D)

1
5) The function of an embedded audit module approach: 5)
A) tests data used to test specific controls.
B) analyses the client data.
C) inserts an audit module into the client's application system.
D) uses software to define the content of data records.
Answer: C
Explanation: A)
B)
C)
D)

6) Generalised audit software: 6)

A) is a method of verifying the client's data which is recorded in a machine language.
B) is used when client's software is not compatible with the auditor's.
C) is often used even when client's data are not computerised.
D) can be used for all three of the above.
Answer: A
Explanation: A)
B)
C)
D)

7) Auditing standards describe which two broad control groupings for IT systems? 7)
1. General controls
2. Application controls
3. Information controls
4. Performance controls
A) 2 and 3 B) 1 and 3 C) 1 and 2 D) 3 and 4
Answer: C
Explanation: A)
B)
C)
D)

8) A computer service centre processes, for an auditor's client, financial data that has a material effect 8)
on that client's financial statements. The independent auditor need NOT consider a review of the
service centre controls if:
A) he or she is satisfied that a special report on internal controls issued by the service centre's
independent auditor can be relied on to the extent desired.
B) the service centre is a partially owned subsidiary of the client company, whose financial
statements are examined by another audit firm.
C) the service centre processes data exclusively for the audit client and its subsidiaries.
D) the service centre controls have already been reviewed by the internal audit team of the client.
Answer: A
Explanation: A)
B)
C)
D)

2
 9) Which of the following is a generalised audit software package? 9)
A) MYOB B) ACL
C) Visual Basic D) None of the above
Answer: B
Explanation: A)
B)
C)
D)

10) Which of the following is NOT an example of a test data approach? 10)
A) Testing online passwords B) Testing input data to final reports
C) Testing authorisation of transactions D) Testing data access controls
Answer: C
Explanation: A)
B)
C)
D)

11) The audit procedure which is least useful in gathering evidence on significant computer processes 11)
is:
A) test data. B) generalised audit software.
C) tracing. D) observation.
Answer: D
Explanation: A)
B)
C)
D)

12) A well-controlled IT system offers greater potential for reducing misstatements because: 12)
A) computers reduce the human error that is likely to occur in traditional manual environments.
B) computers process information consistently.
C) computers handle tremendous volumes of complex business transactions effectively.
D) all of the above
Answer: D
Explanation: A)
B)
C)
D)

13) Application controls vary with each application in the IT system. In attempting to review and gain 13)
an understanding of the internal control system, the auditor must evaluate the application controls
for:
A) every audit area.
B) every material audit area.
C) every audit area in which the client uses the computer.
D) every audit area where the auditor plans to reduce assessed control risk.
Answer: D
Explanation: A)
B)
C)
D)

3
14) A database management system: 14)
A) allows quick retrieval of data, but it needs to update files continually.
B) reduces data redundancy.
C) allows quick retrieval of data but at a cost of inefficient use of file space.
D) stores data on different files for different purposes, but always knows where they are and
how to retrieve them.
Answer: B
Explanation: A)
B)
C)
D)

15) Which one of the following is NOT usually part of a contingency plan? 15)
A) Storing copies of critical software off premises
B) Identifying alternative hardware that can be used to process company data
C) Regular changing of access codes
D) Backing up critical data files
Answer: C
Explanation: A)
B)
C)
D)

16) The accumulation of source documents and records that allows the organisation to trace accounting 16)
entries back to their initiation is the:
A) substantiation record. B) initialisation procedure.
C) outsourcing code. D) audit trail.
Answer: D
Explanation: A)
B)
C)
D)

17) The auditor may decide NOT to reduce assessed control risk even if internal controls are adequate. 17)
This approach is followed if:
A) the cost of the study and tests of controls will exceed the savings from reduced substantive
procedures.
B) the auditor plans to rely on the controls and reduce substantive testing.
C) a qualified opinion will be issued.
D) All of the above are true.
Answer: A
Explanation: A)
B)
C)
D)

4
18) Controls which are designed to assure that the information processed by the computer is 18)
authorised, complete and accurate are called:
A) processing controls. B) general controls.
C) output controls. D) input controls.
Answer: D
Explanation: A)
B)
C)
D)

19) Which one of the following statements is incorrect about network environments? 19)
A) Decentralised servers often increase control risk.
B) Many environments lack standardised procedures.
C) Responsibility for purchasing equipment usually resides with a centralised IT function.
D) Network-related software often lacks the security features typically available in traditionally
centralised systems.
Answer: C
Explanation: A)
B)
C)
D)

20) Many clients have their data processed at an independent computer service centre (IT outsourcing). 20)
The difficulty the independent auditor faces when a computer service centre is used is:
A) in trying to abide by the joint Code of Professional Conduct to maintain the security and
confidentiality of the client's data.
B) in determining the adequacy of the service centre's internal controls.
C) finding compatible programs that will analyse the service centre's programs.
D) gaining the permission of the service centre to review its work.
Answer: B
Explanation: A)
B)
C)
D)

21) The objective of understanding internal control and assessing control risk in an IT system is: 21)
A) to gain an understanding of the computer hardware and software.
B) to evaluate management's efficiency in designing and using the IT system.
C) to determine if the audit firm must have an IT auditor on the team.
D) to aid in determining the audit evidence that should be accumulated.
Answer: D
Explanation: A)
B)
C)
D)

5
22) Internal control is ineffective when computer programmers: 22)
A) design documentation for computerised systems.
B) request physical security be provided for program files.
C) have access to actual programs used to produce accounting information.
D) participate in computer software acquisition decisions.
Answer: C
Explanation: A)
B)
C)
D)

23) Auditing around the computer: 23)

A) uses computer programs to perform audit tasks in special circumstances.
B) uses the client's computer as an audit tool.
C) only considers the non-IT controls in assessing control risk.
D) all of the above
Answer: C
Explanation: A)
B)
C)
D)

24) When the client uses a computer but the auditor chooses to use only the non-IT segment of internal 24)
control to assess control risk, it is referred to as auditing around the computer. Which one of the
following conditions need NOT be present in order to audit around the computer?
A) Computer programs must be available in English.
B) User controls include comparison of computer-produced records with source documents.
C) The accounting software can display or print ledger balances and transaction details that
allow the auditor to trace individual transactions through the accounting records.
D) The source documents are available in a readable form and can be traced easily through the
accounting system to output.
Answer: A
Explanation: A)
B)
C)
D)

25) Which one of the following is NOT a general control? 25)

A) Processing controls B) Segregation of IT duties
C) Hardware controls D) Backup
Answer: A
Explanation: A)
B)
C)
D)

6
26) A site is allowed to retain the Webtrust seal if the auditor monitors compliance at least every: 26)
A) 120 days. B) 60 days. C) 30 days. D) 90 days.
Answer: D
Explanation: A)
B)
C)
D)

27) Well-controlled organisations segregate key duties within IT. Ideally, this means the following 27)
responsibilities should be separated:
A) IT management separate from operations.
B) IT management separate from data control.
C) IT management separate from systems development.
D) All of the above
Answer: D
Explanation: A)
B)
C)
D)

28) When auditing a computerised system, an auditor may use the test data approach as an audit tool. 28)
This technique:
A) involves introducing simulated transactions into the client's actual application program(s).
B) should not involve the actual application programs the client uses throughout the year, since
use of the actual programs would contaminate the client's accounting data.
C) is more applicable to independent audits than internal audits.
D) is a commonly used audit technique for auditing around the computer.
Answer: A
Explanation: A)
B)
C)
D)

29) A key to successful software purchase decisions involves: 29)

A) IT and non-IT personnel. B) internal auditors.
C) key users of the software. D) all of the above
Answer: D
Explanation: A)
B)
C)
D)

7
30) An auditor's investigation of a company's IT control procedures has disclosed the following four 30)
circumstances. Indicate which circumstance constitutes a weakness in internal control.
A) Only one copy of backup files is stored in an off-premises location.
B) Computer operators are closely supervised by programmers.
C) Programmers do not have the authorisation to operate equipment.
D) Computer operators do not have access to the complete run manual.
Answer: B
Explanation: A)
B)
C)
D)

31) Generalised audit software can be used to perform many different kinds of tests. Which is NOT one 31)
of them?
A) Review of accounts receivable balances for amounts over the credit limit
B) Observing cash receipts processes
C) Recalculating employees' net pay calculations
D) Preparing general ledger trial balances
Answer: B
Explanation: A)
B)
C)
D)

32) Development and changes to IT systems are generally coordinated by a ________ analyst. 32)
A) financial B) technical C) systems D) all of the above
Answer: C
Explanation: A)
B)
C)
D)

33) Parallel testing involves: 33)

A) requiring the user to re-input critical fields to verify accuracy of input.
B) operating the old and the new system simultaneously.
C) implementing a new system in one part of the organisation while other locations continue to
rely on the old system.
D) processing test data against a copy of the client's application program.
Answer: B
Explanation: A)
B)
C)
D)

8
34) Auditors usually evaluate the effectiveness of: 34)
A) applications controls first.
B) sales-cycle controls first.
C) general controls before applications controls.
D) hardware controls first.
Answer: C
Explanation: A)
B)
C)
D)

35) The auditor can perform many different kinds of tests and other functions with the auditor's 35)
computer program. Which of the following tests or functions CANNOT be performed?
A) Verify extensions and footings.
B) Analyse exception responses returned with confirmations received from customers.
C) Compare data on separate files.
D) Re-sequence data and perform analyses.
Answer: B
Explanation: A)
B)
C)
D)

36) Generalised audit software can be used to perform many different kinds of tests. Which is NOT one 36)
of them?
A) Totalling the client's accounts receivable balances
B) Random sampling of all other receivables
C) Inquiry of management policy on aged debtors
D) Comparing creditor statements with accounts payable files
Answer: C
Explanation: A)
B)
C)
D)

37) IT can significantly impact on an organisation's overall control risk. Which of the following risks 37)
would NOT be important from an auditing perspective?
A) Use of unreliable information because of processing errors produced by the technology
B) The inability to retrieve important information because of IT systems failure
C) The potential for material misstatement
D) None of the above, i.e., they are all important.
Answer: D
Explanation: A)
B)
C)
D)

9
38) Strong general controls mitigate which type of risks? 38)
A) Risk of system obsolescence B) Risk of system crash
C) Risk of theft of information and data D) All of the above
Answer: B
Explanation: A)
B)
C)
D)

39) Should the auditor feel, after obtaining an understanding of IT internal control, that control risk 39)
cannot be reduced, he or she will:
A) issue an adverse opinion.
B) increase the sample size for tests of controls.
C) issue a disclaimer.
D) expand the substantive testing portion of the audit.
Answer: D
Explanation: A)
B)
C)
D)

40) Which of the following is NOT a general control? 40)

A) Post processing reviews
B) Preparation of backup plans
C) Access to hardware is restricted
D) Equipment error causes error messages to appear on the computer monitor
Answer: A
Explanation: A)
B)
C)
D)

41) The focus of output controls is to: 41)

A) detect errors after the completion of processing.
B) confirm that data has been processed in the correct order.
C) check the accuracy of processing.
D) prevent errors before final reports are completed.
Answer: A
Explanation: A)
B)
C)
D)

10
42) Which of the following is NOT a general control? 42)
A) Processing controls
B) Procedures for documenting, reviewing and approving systems and payments
C) Hardware controls
D) The plan of organisation and operation of IT activity
Answer: A
Explanation: A)
B)
C)
D)

43) Oversight of the IT function to ensure that all activities are carried out consistently with the IT 43)
strategic plan is the responsibility of the:
A) librarian. B) chief information officer.
C) data control group. D) computer operators.
Answer: B
Explanation: A)
B)
C)
D)

44) If a control total were to be computed on each of the following data items, which would BEST be 44)
identified as a hash total for a payroll IT application?
A) Department numbers B) Net pay
C) Total debits and total credits D) Hours worked
Answer: A
Explanation: A)
B)
C)
D)

45) An independent auditor uses generalised audit software. The second step in using GAS, 45)
application design, might include which of the following?
A) Design the most useful format and contents of the auditor's GAS reports.
B) Develop a logical approach to extract and manipulate data obtained from the client's records.
C) Identify and describe the client's data files and the information to which access is desired.
D) All of the above
Answer: D
Explanation: A)
B)
C)
D)

11
46) The audit approach in which the auditor runs his or her own program on a controlled basis in order 46)
to verify the client's data recorded in a machine language is:
A) the microcomputer-aided auditing approach.
B) the generalised audit software approach.
C) the test data approach.
D) called auditing around the computer.
Answer: B
Explanation: A)
B)
C)
D)

47) If the general control environment is weak: 47)

A) auditing through the computer is usually the most cost-effective audit approach.
B) the auditor will need to rely more on application controls and increase testing of these.
C) this tends to have a pervasive effect on the application control environment.
D) all of the above
Answer: C
Explanation: A)
B)
C)
D)

48) Program-oriented CAATs: 48)

A) allow the auditor to select records for further testing.
B) may be applied regardless of the level of assessed control risk in an application.
C) are useful primarily for substantive procedures.
D) none of the above
Answer: D
Explanation: A)
B)
C)
D)

49) Program-oriented CAATs are useful primarily for: 49)

A) tests of controls. B) any type of audit testing.
C) tests of balances. D) analytical review tests.
Answer: A
Explanation: A)
B)
C)
D)

12
50) How do information technologies enhance internal control? 50)
A) Computer controls replace manual controls.
B) Higher quality information is available.
C) Computer controls are cheaper.
D) Both A and B above
Answer: D
Explanation: A)
B)
C)
D)

51) Physical control over computer equipment restricts access to: 51)
A) software. B) hardware.
C) backup data files. D) all of the above
Answer: D
Explanation: A)
B)
C)
D)

52) Controls which are built in by the manufacturer to detect equipment failure are called: 52)
A) input controls. B) manufacturer's controls.
C) hardware controls. D) fail-safe controls.
Answer: C
Explanation: A)
B)
C)
D)

53) Which of the following is NOT an example of an applications control? 53)

A) An equipment failure causes an error message on the monitor.
B) After processing, all sales transactions are reviewed by the sales department.
C) There are reasonableness tests for the unit selling price of a sale.
D) Resonableness tests reviewing hours worked by employees
Answer: A
Explanation: A)
B)
C)
D)

54) Controls which apply to the processing of individual transactions are called: 54)
A) user controls. B) systems controls.
C) general controls. D) applications controls.
Answer: D
Explanation: A)
B)
C)
D)

13
55) Pre-designed formats for audit working papers and letters can be created and saved using both 55)
electronic spreadsheets and word processors. These are called:
A) audit software. B) macros.
C) templates. D) desktop publishing.
Answer: C
Explanation: A)
B)
C)
D)

56) The use of 'encryption' techniques protect the security of electronic communication during the: 56)
A) recording process. B) transmission process.
C) data backup process. D) data output process.
Answer: B
Explanation: A)
B)
C)
D)

57) The effect of ITF transactions should be removed: 57)

A) on a surprise basis. B) after the conclusion of the audit.
C) by inputting adjustment transactions. D) by the internal audit group.
Answer: C
Explanation: A)
B)
C)
D)

58) Which of the following is NOT an application control? 58)

A) Reasonableness test for unit selling price of sale
B) Preprocessing authorisation of sales transactions
C) Separation of duties between computer programmer and operators
D) Post-processing review of sales transactions by the sales department
Answer: C
Explanation: A)
B)
C)
D)

59) Which one of the following is NOT an application control? 59)

A) Input controls B) Output controls
C) Processing controls D) Hardware controls
Answer: D
Explanation: A)
B)
C)
D)

14
60) The most important output control is: 60)
A) distribution control, which assures that only authorised personnel receive the reports
generated by the system.
B) review of the data for reasonableness by someone who knows what the output should look
like.
C) control totals, which are used to verify that the computer's results are correct.
D) logic tests, which verify that no mistakes were made in processing.
Answer: B
Explanation: A)
B)
C)
D)

61) A common assumption is that 'the information is ________ because the computer produced it'. 61)
A) relevant B) dubious C) substantive D) correct
Answer: D
Explanation: A)
B)
C)
D)

62) Data Corporation has just completely computerised its billing and accounts receivable 62)
record-keeping. Your firm has recently acquired IDEA software and you want to make maximum
use of the computer in your audit of Data Corporation. Which of the following audit techniques
could NOT be performed using generalised audit software?
A) Selecting a sample of accounts to be confirmed and printing confirmation requests
B) Comparing data on separate files
C) Resolving differences reported by customers on confirmation requests
D) Examining records for quality, completeness, consistency and correctness
Answer: C
Explanation: A)
B)
C)
D)

63) An auditor who is testing IT controls in a payroll system would most likely use test data that 63)
contains conditions such as:
A) time tickets with invalid job numbers.
B) deductions not authorised by employees.
C) overtime not approved by supervisors.
D) payroll cheques with unauthorised signatures.
Answer: A
Explanation: A)
B)
C)
D)

15
SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.

64) Discuss what is meant by the term 'auditing through the computer'. 64)
Answer: This approach can be used when source documents are kept in electronic format. Its
use can only be justified when general controls are acceptable. The auditor may rely
on application controls built into the client's application software for processing. The
auditor may use such techniques as test data, generalised or specialist audit
software.
Explanation:

65) Discuss how the integration of IT into accounting systems enhances internal control. 65)
Answer: Enhancements to internal control resulting from the integration of IT into accounting
systems include:
· Computer controls replace manual controls. Replacing manual procedures with
programmed controls that apply checks and balances to each processed transaction
and that process information consistently can reduce human error that is likely to
occur in traditional manual environments.
· Higher quality information is available. IT systems typically provide management
with more and higher quality information faster than most manual systems.
Explanation:

66) Describe four common audit tasks that can be simplified by the use of microcomputers in 66)
practice.
Answer: Common audit tasks that can be simplified by the use of microcomputers in practice
include:
· preparing trial balances and lead schedules
· preparing working papers
· performing analytical procedures
· preparing audit programs
· obtaining an understanding of the client's internal controls
· performing audit sampling
· managing engagements and time budgets.
Explanation:

67) Although IT can enhance a company's internal control, it can also affect a company's 67)
overall control risk. Identify any four of these new risks specific to IT environments.
Answer: Objective 2 discusses eight new IT control risks:
1. Reliance on the functioning capabilities of hardware and software
2. Visibility of audit trail
3. Reduced human involvement
4. Systematic versus random errors
5. Loss of data
6. Reduced segregation of duties
7. Lack of traditional authorisation
8. Need for IT experience
Explanation:

16
 68) Identify the three categories of application controls and give one example of each. 68)
Answer: Application controls fall into three categories:
· Input controls. Key verification and batching are examples of input controls.
· Processing controls. One example is a reasonableness test for the unit selling price
of a sale.
· Output controls. One example is post-processing review of sales transactions by
the sales department.
Explanation:

69) There are three concerns or difficulties that must be overcome before the test data 69)
approach can be used by the auditor. Discuss each of these concerns.
Answer: Three concerns to be addressed before the test data approach can be used by the
auditor are:
· Test data must include all relevant conditions that the auditor wants tested.
· Application programs tested by the auditor's test data must be the same as those
used throughout the year by the client.
· Copies of client files must be used when testing programs that update master files,
to avoid damaging or distorting those files.
Explanation:

70) Provide five examples of different IT environments the auditor may encounter. 70)
Answer: Examples of the various IT environments that exist today include:
1. Microcomputer environments
2. Network environments
3. Database management systems
4. E-commerce systems
5. Clients who outsource IT
6. Other engagements involving IT systems
Explanation:

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.

71) Tests of controls are normally performed only if the auditor believes the client's internal control 71)
may be effective.
Answer: True False
Explanation:

72) Using the test data approach, the auditor processes a set of the client's actual transaction data using 72)
the auditor's computer programs on the auditor's computer equipment to determine whether the
client's computer programs and equipment are processing data correctly.
Answer: True False
Explanation:

73) Systems development, operations and data control, and librarianship are separated in an IT system. 73)
Answer: True False
Explanation:

74) The perceived importance of IT within an organisation is often dictated by the attitude of the audit 74)
committee.
Answer: True False
Explanation:

17
75) The objective of the computer audit technique known as the test data approach is to determine 75)
whether the client's computer programs can correctly process valid and invalid transactions.
Answer: True False
Explanation:

76) An advantage of generalised audit software (GAS) is the ability to access and test client data 76)
independently.
Answer: True False
Explanation:

77) One key to a backup and contingency plan is to make sure that all critical copies of software and 77)
data files are backed up and stored off-premises.
Answer: True False
Explanation:

78) In IT systems, if general controls are effective, it increases the auditor's ability to rely on application 78)
controls to reduce control risk.
Answer: True False
Explanation:

79) General controls are normally evaluated earlier in the audit than application controls. 79)
Answer: True False
Explanation:

80) When the auditor decides to audit around the computer, he or she is not required to test the client's 80)
IT controls.
Answer: True False
Explanation:

81) Encryption techniques protect the security of electronic communication during transmission. 81)
Answer: True False
Explanation:

82) Companies decide whether to outsource IT based on auditor judgement. 82)

Answer: True False
Explanation:

83) The major disadvantage of generalised audit software is that its complexity limits its use primarily 83)
to IT specialists.
Answer: True False
Explanation:

84) When auditing a client whose information is processed by an outside computer service company, it 84)
is acceptable for the auditor to rely on the audit report of another independent auditor who has
previously tested the internal controls of the computer service centre rather than testing the service
centre's controls himself or herself.
Answer: True False
Explanation:

18
85) Controls that relate to a specific use of the IT system, such as the processing of sales or cash 85)
receipts, are called application controls.
Answer: True False
Explanation:

86) The day-to-day operations of the computer are the responsibility of management. 86)
Answer: True False
Explanation:

87) Processing controls is a category of general controls. 87)

Answer: True False
Explanation:

88) Auditing around the computer is acceptable when general controls are strong. 88)
Answer: True False
Explanation:

89) Control risk is often affected by a complex IT system even if it enhances internal controls. 89)
Answer: True False
Explanation:

90) One disadvantage of IT systems is the potential elimination of the control provided by division of 90)
duties of independent persons normally present in manual systems.
Answer: True False
Explanation:

91) One common use of generalised audit software is to help the auditor identify weaknesses in the 91)
client's IT control procedures.
Answer: True False
Explanation:

92) In database management systems many applications share files, whereas in non-database 92)
environments each application manages its own data file.
Answer: True False
Explanation:

93) General controls in smaller companies are usually less effective than in more complex IT 93)
environments.
Answer: True False
Explanation:

94) A firewall is a system of hardware and software that monitors and controls the flow of e-commerce 94)
communications by channelling all network connections through a control gateway.
Answer: True False
Explanation:

95) One potential disadvantage of IT systems is the increased risk of destruction of entire data files. 95)
Answer: True False
Explanation:

19
 96) Auditing through the computer is justified when general controls are acceptable. 96)
Answer: True False
Explanation:

97) In database management systems, each application contains its own data file whereas in 97)
non-database environments, many applications share files.
Answer: True False
Explanation:

98) IT controls are classified as either general or application controls. 98)

Answer: True False
Explanation:

99) Auditing around the computer is acceptable if the auditor has access to sufficient source documents 99)
and a detailed listing of output in a readable form.
Answer: True False
Explanation:

ESSAY. Write your answer in the space provided or on a separate sheet of paper.

100) Assume you are using generalised audit software (GAS) during your audit of accounts receivable. Discuss four
kinds of tests or audit procedures you can perform with the GAS if the client's data are in machine-readable
form.
Answer: Examples of the types of tests that can be performed using GAS during the audit of accounts receivable
include:
· verifying extensions and footings
· examining records for quality, completeness, consistency and correctness
· comparing data on separate files
· summarising or resequencing data and performing analyses
· comparing data obtained through other audit procedures with company records
· selecting audit samples
· printing confirmation requests.

101) Discuss the four areas of responsibility under the IT function that should be segregated in large companies.
Answer: The responsibilities for IT management, systems development, operations and data control should be
separated:
· IT Management. Oversight of the IT function should be segregated from the systems development,
operations and data control functions. Oversight of IT should be the responsibility of the chief
information officer or IT manager.
· Systems development. Systems analysts are responsible for the overall design of each application
system. Programmers develop, test and document applications software. Programmers and analysts
should not have access to input data or computer operations.
· Operations. Computer operators are responsible for the day-to-day operations of the computer.
· Data control. Data control personnel independently verify the quality of input and the reasonableness
of output.

20
102) Discuss the circumstances that may exist in a 'network environment' which may challenge traditional general
CIS controls.
Answer: To audit a network environment, the auditor must first thoroughly assess the environment as the
following conditions occasionally exist in some local area or wide area networks:
· Some networks decentralise their network's servers, thus increasing control risk.
· Some networks lack standardised equipment and procedures.
· Responsibility for purchasing, maintenance administration, etc., often resides with key user groups
rather than centrally.
· Network-related software often lacks the security features typically available in centralised
environments.

103) Discuss the major factors associated with complex IT systems that increase control risk and the likelihood of
material misstatements in the financial statements.
Answer: Factors associated with complex IT systems that increase the likelihood of material misstatements in the
financial statements include:
· Reliance on the functioning capabilities of hardware and software. Without proper protection,
hardware or software may not function properly.
· Reduced visibility of audit trail. Because much of the information is entered directly into the computer,
the use of IT often reduces or eliminates source documents and records that allow the organisation to
trace accounting information.
· Reduced human involvement. In complex IT systems, there are fewer opportunities for observing
whether misstatements have occurred.
· Uniformity of processing increases risk of systematic errors. Erroneous processing can result in the
accumulation of a great number of misstatements in a short period of time.
· Unauthorised access. If not well controlled, data-processing systems allow easy access to data and use
of the data by unauthorised persons.
· Loss of data. When large amounts of data are centralised, there is an increased risk of their loss or
destruction.
· Reduced segregation of duties. In IT systems, computers perform many duties that were traditionally
segregated, such as authorisation and record keeping.
· Lack of traditional authorisation. It is common in IT systems for certain types of transactions to be
initiated automatically by the computer.
· Need for IT experience. Personnel with knowledge and experience to install, maintain and use the
computer system are essential. The reliability of an IT system and the information it produces often
depend on whether the organisation can employ personnel with appropriate technology knowledge and
experience.

104) Identify the six categories of general controls and give one example of each.
Answer: General controls fall into the following six categories:
· Administration of IT function. For example, the chief information officer (CIO) should report to senior
management and board of directors.
· Segregation of IT duties. For example, there should be separation of duties between the computer
programmers, operators and the data control group.
· Systems development. Users, analysts and programmers develop and test software.
· Physical and online security. For example, passwords should be required for access to computer
systems.
· Backup and contingency planning. Written backup plans should be prepared and tested on a regular
basis throughout the year.
· Hardware controls. For example, uninterruptible power supplies should be used to avoid loss of data in
the event of a power blackout.

21
105) Auditing a small client in an IT environment poses some particular challenges for the auditor. Identify and
describe.
Answer: Most entities, including small, family-owned businesses, rely on IT to record and process business
transactions. As a result of explosive advancements in IT, even relatively simple businesses use personal
computers with purchased accounting software such as MYOB for their accounting processes.

The auditor needs to recognise that smaller firms will have some IT environment; however, the
challenges would include:
1. General controls. The auditor should expect that overall in smaller IT systems, general controls will be
weaker. For example, an important general control is segregation of IT functions. It may be that in many
small companies it is not practical to segregate the duties to the extent desirable.
2. Microcomputers. Smaller firms would rely more on microcomputers, which leads to the following
concerns:
· Often, there are no dedicated IT personnel or the client relies on periodic involvement of IT
consultants to assist in installing and maintaining hardware and software.
· Also, the responsibility of the IT function is often assigned to user departments where the
hardware physically resides.
· controls over software acquisition, physical and online access security, and backup planning are
still important
3. Many clients outsource some or all of their IT needs to an independent computer service centre,
including smaller clients.

106) Describe the method used to reduce unauthorised exposures by external parties in e-commerce systems.
Answer: The use of e-commerce systems exposes company data, programs and hardware to potential interception
or sabotage by external parties. This can be limited by the use of digital signatures, firewalls, and
encryption techniques to protect data, programs and other IT resources, and limitation of access to IT
information by use of passwords in microcomputer systems.

107) Discuss the advantages and benefits of using generalised audit software.
Answer: Advantages and benefits of using generalised audit software include:
· They are developed in such a manner that most of the audit staff can be trained to use the program
even if they have little formal IT education.
· The auditor is able to access and test client data independently without reliance on the client's
personnel or software.

22
Answer Key
Testname: C10

1) C
2) C
3) D
4) B
5) C
6) A
7) C
8) A
9) B
10) C
11) D
12) D
13) D
14) B
15) C
16) D
17) A
18) D
19) C
20) B
21) D
22) C
23) C
24) A
25) A
26) D
27) D
28) A
29) D
30) B
31) B
32) C
33) B
34) C
35) B
36) C
37) D
38) B
39) D
40) A
41) A
42) A
43) B
44) A
45) D
46) B
47) C
48) D
49) A
50) D
23
Answer Key
Testname: C10

51) D
52) C
53) A
54) D
55) C
56) B
57) C
58) C
59) D
60) B
61) D
62) C
63) A
64) This approach can be used when source documents are kept in electronic format. Its use can only be justified when
general controls are acceptable. The auditor may rely on application controls built into the client's application software
for processing. The auditor may use such techniques as test data, generalised or specialist audit software.
65) Enhancements to internal control resulting from the integration of IT into accounting systems include:
· Computer controls replace manual controls. Replacing manual procedures with programmed controls that apply
checks and balances to each processed transaction and that process information consistently can reduce human error
that is likely to occur in traditional manual environments.
· Higher quality information is available. IT systems typically provide management with more and higher quality
information faster than most manual systems.
66) Common audit tasks that can be simplified by the use of microcomputers in practice include:
· preparing trial balances and lead schedules
· preparing working papers
· performing analytical procedures
· preparing audit programs
· obtaining an understanding of the client's internal controls
· performing audit sampling
· managing engagements and time budgets.
67) Objective 2 discusses eight new IT control risks:
1. Reliance on the functioning capabilities of hardware and software
2. Visibility of audit trail
3. Reduced human involvement
4. Systematic versus random errors
5. Loss of data
6. Reduced segregation of duties
7. Lack of traditional authorisation
8. Need for IT experience
68) Application controls fall into three categories:
· Input controls. Key verification and batching are examples of input controls.
· Processing controls. One example is a reasonableness test for the unit selling price of a sale.
· Output controls. One example is post-processing review of sales transactions by the sales department.
69) Three concerns to be addressed before the test data approach can be used by the auditor are:
· Test data must include all relevant conditions that the auditor wants tested.
· Application programs tested by the auditor's test data must be the same as those used throughout the year by the
client.
· Copies of client files must be used when testing programs that update master files, to avoid damaging or distorting
those files.

24
Answer Key
Testname: C10

70) Examples of the various IT environments that exist today include:

1. Microcomputer environments
2. Network environments
3. Database management systems
4. E-commerce systems
5. Clients who outsource IT
6. Other engagements involving IT systems
71) TRUE
72) FALSE
73) TRUE
74) FALSE
75) TRUE
76) TRUE
77) TRUE
78) TRUE
79) TRUE
80) TRUE
81) TRUE
82) FALSE
83) FALSE
84) TRUE
85) TRUE
86) FALSE
87) FALSE
88) FALSE
89) TRUE
90) TRUE
91) FALSE
92) TRUE
93) TRUE
94) TRUE
95) TRUE
96) TRUE
97) FALSE
98) TRUE
99) TRUE
100) Examples of the types of tests that can be performed using GAS during the audit of accounts receivable include:
· verifying extensions and footings
· examining records for quality, completeness, consistency and correctness
· comparing data on separate files
· summarising or resequencing data and performing analyses
· comparing data obtained through other audit procedures with company records
· selecting audit samples
· printing confirmation requests.

25
Answer Key
Testname: C10

101) The responsibilities for IT management, systems development, operations and data control should be separated:
· IT Management. Oversight of the IT function should be segregated from the systems development, operations and
data control functions. Oversight of IT should be the responsibility of the chief information officer or IT manager.
· Systems development. Systems analysts are responsible for the overall design of each application system.
Programmers develop, test and document applications software. Programmers and analysts should not have access to
input data or computer operations.
· Operations. Computer operators are responsible for the day-to-day operations of the computer.
· Data control. Data control personnel independently verify the quality of input and the reasonableness of output.
102) To audit a network environment, the auditor must first thoroughly assess the environment as the following conditions
occasionally exist in some local area or wide area networks:
· Some networks decentralise their network's servers, thus increasing control risk.
· Some networks lack standardised equipment and procedures.
· Responsibility for purchasing, maintenance administration, etc., often resides with key user groups rather than
centrally.
· Network-related software often lacks the security features typically available in centralised environments.
103) Factors associated with complex IT systems that increase the likelihood of material misstatements in the financial
statements include:
· Reliance on the functioning capabilities of hardware and software. Without proper protection, hardware or software
may not function properly.
· Reduced visibility of audit trail. Because much of the information is entered directly into the computer, the use of IT
often reduces or eliminates source documents and records that allow the organisation to trace accounting information.
· Reduced human involvement. In complex IT systems, there are fewer opportunities for observing whether
misstatements have occurred.
· Uniformity of processing increases risk of systematic errors. Erroneous processing can result in the accumulation of a
great number of misstatements in a short period of time.
· Unauthorised access. If not well controlled, data-processing systems allow easy access to data and use of the data by
unauthorised persons.
· Loss of data. When large amounts of data are centralised, there is an increased risk of their loss or destruction.
· Reduced segregation of duties. In IT systems, computers perform many duties that were traditionally segregated,
such as authorisation and record keeping.
· Lack of traditional authorisation. It is common in IT systems for certain types of transactions to be initiated
automatically by the computer.
· Need for IT experience. Personnel with knowledge and experience to install, maintain and use the computer system
are essential. The reliability of an IT system and the information it produces often depend on whether the organisation
can employ personnel with appropriate technology knowledge and experience.
104) General controls fall into the following six categories:
· Administration of IT function. For example, the chief information officer (CIO) should report to senior management
and board of directors.
· Segregation of IT duties. For example, there should be separation of duties between the computer programmers,
operators and the data control group.
· Systems development. Users, analysts and programmers develop and test software.
· Physical and online security. For example, passwords should be required for access to computer systems.
· Backup and contingency planning. Written backup plans should be prepared and tested on a regular basis
throughout the year.
· Hardware controls. For example, uninterruptible power supplies should be used to avoid loss of data in the event of
a power blackout.

26
Answer Key
Testname: C10

105) Most entities, including small, family-owned businesses, rely on IT to record and process business transactions. As a
result of explosive advancements in IT, even relatively simple businesses use personal computers with purchased
accounting software such as MYOB for their accounting processes.

The auditor needs to recognise that smaller firms will have some IT environment; however, the challenges would
include:
1. General controls. The auditor should expect that overall in smaller IT systems, general controls will be weaker. For
example, an important general control is segregation of IT functions. It may be that in many small companies it is not
practical to segregate the duties to the extent desirable.
2. Microcomputers. Smaller firms would rely more on microcomputers, which leads to the following concerns:
· Often, there are no dedicated IT personnel or the client relies on periodic involvement of IT consultants to
assist in installing and maintaining hardware and software.
· Also, the responsibility of the IT function is often assigned to user departments where the hardware physically
resides.
· controls over software acquisition, physical and online access security, and backup planning are still important
3. Many clients outsource some or all of their IT needs to an independent computer service centre, including smaller
clients.
106) The use of e-commerce systems exposes company data, programs and hardware to potential interception or sabotage
by external parties. This can be limited by the use of digital signatures, firewalls, and encryption techniques to protect
data, programs and other IT resources, and limitation of access to IT information by use of passwords in
microcomputer systems.
107) Advantages and benefits of using generalised audit software include:
· They are developed in such a manner that most of the audit staff can be trained to use the program even if they have
little formal IT education.
· The auditor is able to access and test client data independently without reliance on the client's personnel or software.

27
Another random document with
no related content on Scribd:
[410]

For maytenaunce where of, my realme I polde

Through subsidies, sore fines, loanes, many a prest.
1559, 63.

[411] In the two and twentyest yere of kynge Rycharde there

were made blanke chartres, to whyche all the ryche men of
the reame were compellyd to sette to theyr seales.
Polychronicon.
[412] For which my subiectes. 1559, 63.
[413] The people my doinges did detest. 1578.
[414] I also made away the towne. 1559, 63.
[415] Prince’s vices may not be. 1559, 63.
[416] I founde the meanes that he to death was sold. N.
[417]

His lyfe I tooke, vntried without quest,

And all sutch lordes as did his cause vphold. 1578.

[418]

The piers and lordes that did his cause vpholde,

With death, exile, or greuous fines opprest. 1559, 63.

[419] Neyther lakt I ayd in. 1559, 63.

[420] A kyng can neuer ymagen. 1559, 63.
[421] But most about hym will. 1559, 63.
[422] Some to do the same most glad. 1578.
[423] As vicious humours growe. 1559, 63.
[424] Be worst of all. 1578.
[425] Thys can trye. 1559, 63.
[426] Edward. 1578.
[427] Traytors to helpe. 1578.
[428]
 Ryght trayterously arose
To helpe the Percyes, plying my depose. 1559, 63.

[429] Condemned ten yeares in exyle to lye. 1559, 63.

[430] Who tyrant like did execute all those. 1578.
[431] Of which sort soone after some their liues did lose. 1578.
[432] For when I was cum back thys stur. 1559, 63.
[433] My steward false to whom. 1578.
[434] We in Wales at Flint our castell. 1559, 63.
[435] Dyd. 1559, 63.
[436] There in my hall, mindinge to fly the coast. 1578.
[437] Rebreake hys staffe, my housholde offyce stay. 1559,
63.
[438] No better stay then in a rotten post. 1578.
[439] Resigne, abandoning my throane. 1578.
[440] Forsaken left and post. N.
[441]

For whan my trayterous stuard thus was goen,

My seruantes shranke away on euery syde,
That caught I was, and caryed to my foen:
Who for theyr prince a pryson dyd provyde,
And therin kept me tyll duke Henrye’s pryde
Dyd cause me yelde hym vp my crowne and throne:
Which shortely made my frendly foes to grone,
For Henry seyng in me theyr falshode tryed,
Abhorde them all, and would be rulde by none;
For which they sought to stoppe hym strayt a tyde.
1559, 63.

[442] Yet some conspir’d. N.

[443] Conspiring streight their new prince. 1578.
[444]

The chief conspyrde by death to dryve hym downe,

For which exployte, a solempne. 1559, 63.
 Which to performe a solempne. 1578.
[445] My lyberty and. 1559, 63. My sceptre and my. 1578.
[446] No festred sore. 1578.
[447]

But salues help seeld an over long suffred sore,

To stopp the brech no boote to runne or rowne,
When swellyng fluds have overflowen the town:
Tyll sayles be spred the shyp may kepe the shore,
The ankers wayed, though all the frayt do frowne,
With streame and steere perforce it shal be bore. 1559,
63.

Then winde and streame hath set the seas in rore. 1578.
[448] In such state. 1578.
[449] They soone depriued. N.
[450] Easely put me downe of late. 1559, 63.
[451]

And where with ease my pride they did abate,

They were to weake to set me vp agayne. 1578.

[452] By. 1578.

[453] In. 1559.
[454] And well meant meanes his mishaps. 1559, 63.
[455] In me appereth playne. 1559, 63.
[456] For when kyng Henry knew. 1559, 63.
[457] According to Fabian there was “made prouysyon for a
dysguysynge or a mummynge, to be shewyd to the kynge
vpon twelfethe nyght:” but Hall describes the plot for the
assassination as intended to have been effected during the
holding solemn justs at Oxford, and gives a curious and
perspicuous account of the preparations made for exhibiting
noble acts of chivalry.
[458] Hym yf they myght. 1559, 63. Would murder him by
night. 1578.
[459] Cutthroate. 1578.
[460]

But sent syr Pierce of Exton, a traytrous knyght,

To Pomfret castell, with other, armed lyght. 1559, 63.

[461]

Sent with great dispite,

Who reft my lyfe by force against al lawes. 1578.

[462] In flaterie’s clawes, and shame’s foule pawes shall lyght.

1559, 63.

And so I end concluding with this clause;

That God though late at last wil surely smyte. 1578.

[463] George Ferrers, the initials added. 1571.

[464] When maister Ferrers had. 1578.
[465] Whan master Chaloner had ended thys so eloquent a
tragedy. Fol. See n. 1, p. 53.
[466] Right notable and wurthy. Fol.
[467] ‘We paused,’ is transposed to end of sentence, after
‘piteous tragedies, we paused awhile. And seeing.’ 1578.
[468] A prince. 1578.
[469] Ware. 1571, 78.
[470] Princes. Fol.
[471] Owen Glendour, a great prince in Wales, next in
succession of ill fortune with the stout Percies, his
confederates, I thought it not meete to ouerpasse so great
persons with silence, and therefore. 1578.
[472] ‘The,’ omitted. Fol.
[473] Howbeit Owen Glendour because he is a man of that
countrey whence (as the Welchmen beare me in hand) my
petigre is discended, althoughe he be but a slender prince, yet
rather then he should be forgotten, I wyll tell his tale for him
vnder the priuilege of Martin Hundred: which Owen coming
naked out of the wilde mountaynes, like the image of death in
all poyntes (his dart onely excepted) so sore hath famine and
hunger consumed him, lamenteth his infortune after this
maner. Fol.
[474] Monark. 1578.
[475] Rather then he should be forgotten. I wil pray maister
Phaer, who of late hath placed hymselfe in that country, and
haply hath met with his ghost in the forest of Kylgarran, that he
wil say somwhat in his person. 1578.
[476] One of fortune’s darlynges, rather than he should be
forgotten, I will tel hys tale for him vnder the pryuelidge of
Martine hundred: which, &c. 1559, 63.
[477] Excepted, so sore hath famyne and hunger consumed
hym, may lament his folly after. 1559, 63.
[478] Lamente his great misfortune in sutch maner as you,
maister Phaer, are able most amptly to vtter and set forth.
1578.
[479] Henry then prince. 1559, 63.
[480] Henry then prince thereof chased. Fol.
[481] He most miserably starued for hunger. 1578.
[482] Anno 1401, added. 1571.
[483] Falles. Fol.
[484] May teach all men ambition to flye. 1578.
[485] Her. Fol. 1559, 63.
[486]

My body and fame she hathe made leane and slender,

For I, poor wretch, am sterved Owen Glendour. Fol.
1559, 63.
Oh false fortune, fortune, vengeaunce on thee, I crye:
Which offering a sop of sweet receyt,
Haste made me byte the hooke in steede of bayt.
1578.

[487] A Brytton borne. 1578.

[488] Of a gentle blood. Fol. 1559, 63.
[489] Make men good. Fol.
[490] So doth not soule or mynd. Fol. 1559, 63.
[491] Them doo render. Fol.
[492] And generally. Fol.
[493] Doth any property that theyr dame had, want. Fol. 1559,
63.
[494] In vertuous deedes. Fol. 1559, 63.
[495] Of vertue’s life. 1578.
[496] For. Fol.
[497] The pryde. 1559, 63.
[498] To which the mule. 1559, 63.
[499] The braging mule could nere. N.
[500] Wer. Fol. Is. 1559, 63.
[501] May, omitted. 1578.
[502] Is. Fol. 1559.
[503] Our parents’ good is theirs. N.
[504] Vertues theyrs are and not ours. Fol. 1559, 63.
[505] Noble kynd. Fol. 1559, 63.
[506] Or shine. N.
[507] Be his. Fol.
[508] Doth make a gentilman. Fol. 1559. Make a gentyll man.
1563.
[509] Of elders shew he can. Fol. 1559, 63.
[510] Merlin, whose father was an hob. Fol.
[511] For omitted. N.
[512] By many of Merlyne’s tales. Fol. 1559, 63.
[513] Such mates. N.
[514] I, inserted. 1571. So perforce I. N.
[515] Did. 1557.
[516] And with rich spoyles did homward. Fol.
[517] ’Gainst. N.
[518] A renowned knight. N.
[519] A, omitted. N.
[520] That, inserted. 1571. Omitted. N.
[521] A, omitted. N.
[522] Other. Fol.
[523] T’abide. N.
[524] And pitched downe his field hard. N.
[525] Neither other’s power durst. N.
[526] To the mountaines. Fol.
[527] See. Fol. 1559, 63.
[528] Got. Fol. 1559.
[529] The fragment of the folio, in the British Museum, ends
here.
[530] Strifes. N.
[531] To put hym, 1557, 63.
[532] Holy. N.
[533] Apt. N.
[534] Here I passe ouer to declare howe a certayne writer
writeth that this earle of Marche, the lorde Percy, and Owen
Glendor were vnwisely made beleue by a Welsh prophecier,
that kyng Henry was the moldwarpe, cursed of Godde’s owne
mouthe, that and they thre were the dragon, the lion, and the
wolffe, whiche shoulde deuide this realme betwene theim, by
the deuiacion and not deuinacion of that mawmet Merlin. I wyll
not reherse howe they by their deputies in the howse of the
archdeacon of Burgor, seduced with that falce fained
prophesie deuided the realme amongest them, nor yet write
howe by a tripartie endenture sealed with their seales, all
Englande, from Seuerne and Trent, south and eastward, was
assigned to the erle of Marche; nor how all Wales, and the
landes beyond Seuerne westward, were appoincted to Owen
Glendor, and all the remnaunt from Trent northwarde to the
lorde Percie. Hall.
[535] So folly did assure. N.
[536] As sures by sots. 1559, 63, 71, 75, 78. As carelesse
sots. N.
[537] Thine vncle Thomas Percy forst. N.
[538] When Henry kyng. 1559, 63. When Henry this great
victory. N.
[539] Luckly. N.
[540] The prophet. N.
[541] Else. N.
[542] Payn prayed. 1559, 63.
[543] Stronge. 1578.
[544]

Forst mee to feede on barke of trees, and wood,

And last of all, to gnaw my flesh and bloud. 1578.

[545] A, omitted. N.
[546] For him that did so ill. 1578.
[547] The vayne desires, when wit doth yeeld to will. 1578.
[548] Fly false prophets. N.
[549] Lyinge skill. 1578.
[550] Owen and his sedicious fautors, which beyng dismaied
and in maner desperate of all comfort by the reason of the
kynge’s late victory fled in desert places and solitary caues,
where he receiued a finall reward mete and prepared by
Godde’s prouidence for suche a rebell and sedicious seducer.
For beyng destitute of all comfort, dreadyng to shewe his face
to any creature, lackyng meate to sustain nature, for pure
hunger and lacke of fode miserably ended his wretched life.
This ende was prouided for suche as gaue credence to false
prophesies. This ende had they that by diabolical deuinations
wer promised great possessions and seignories. This ende
happeneth to suche as beleuyng suche fantasticall folies,
aspire and gape for honor and high promocions. Hall.
[551] Thomas Phaer. The above signature first added in ed.
1578, is omitted in ed. 1587, though confirmed by the next
note. The name is subscribed in Niccols.
[552] Whan mayster Phaer had ended the tragedy of thys
hunger staruen prynce of Wales, it was well liked of al the
company that a Saxon would speake so mutch for a Brytton,
then sodenly one found a doubt. 1578.
[553] That. 1559, 63.
[554] Percy, added. 1571.
[555] Sir, added. 1571.
[556] As followeth, added. 1571.
[557] Anno 1407, added. 1571.
[558] Kynsfolke. 1559, 63.
[559] For our peers. N.
[560] For few there were, that were so much redoubted. N.
[561] My valyauntise were. 1559, 63.
[562] Through our foes. N.
[563] Foes. N.
[564] In favour and offyce. 1559, 63.
[565] I had a son. 1559, 63.
[566] Foes. N.
[567] Syr Henry Hotspur they gaue hym to name. 1559, 63.
[568] Clere from. 1559, 63, 71. N.
[569] And openly proclaymed trayterous knight. 1559, 63. A
most disloyall knight. N.
[570] And soone. N.
[571] This alonely. 1559, 63.
[572] Nor age. N.
[573] Foes. N.
[574] With chaines fast bound. N.
[575] ’Gainst Mortimer and me. N.
[576] That. 1559, 63.
[577] To. N.
[578] Our. N.
[579] Seased. N.
[580] Into Scotland fled. N.
[581]

Who in my cause with many more made head,

And when on hope of greater aid I fed. N.

[582] Vnend. 1559, 63.

[583] Therle of Northumberland, which had been in Fraunce
and other regions to obteigne aide against kyng Henry, and
had missed of his purpose, nowe putte his whole confidence
in the Scottes, and in especiall in hys old frende George earle
of Marche, and so assembled a greate power of the Scottish
nacion to inuade Northumberlande, and recouered diuerse of
his owne castles and seignories, to whome the people without
nombre daily resorted. Wherfore he entendyng to be reuenged
of hys olde greues, accompaignied with the lorde Bardolffe
and diuerse other Scottes and Englishemen entred into
Yorkeshire and there began to destroy and depopulate the
countrye. Wherof the kynge beyng aduertised, caused a
greate army to bee assembled and marched toward his
enemies, but or the kyng came to Notyngham, Raufe
Rekesbie, shrife of Yorkshire, in the middest of February, with
the power of the countrye, sodainly set on therle and his
compaignie, at the place called Bramham More, where after
long fighting, the erle and the lorde Bardolffe, and many other,
were taken and brought to Yorke and there executed, and their
heddes sent to London. Hall.
[584] Scape. N.
[585] This legend is without signature in all the editions, but
usually attributed to William Baldwin.
[586] In the ix yere was syr Edmond erle of Kent made amerall
of the see, whyche kept the see worthyly wyth many ryall
shyppes. And at laste he londed at the costes of Brytayn in the
yle of Bryak, and beseged the castell, and sawted it. And with
a quarel he was slayn. But neuertheless the castel was goten.
And thenne his meyne came home agayn wyth therles body,
whyche was buryed wyth his auncestres worshipfully.
Polychronicon.
[587] Plantagenet, added. 1571.
[588] Anno Dom. 1415. added. 1571.
[589] Most. 1578.
[590] As. 1578.
[591] Meaners. 1578.
[592] Do. 1578.
[593] Wer’t. N.
[594] Of the. 1559, 63.
[595] The night before the day of deperture appoincted, he
(the king) was credebly informed that Richarde, earle of
Cambridge, brother to Edward, duke of Yorke, and Henry,
lorde Scrope, and syr Thomas Gray, knyght, had compassed
his death and finall destruction: wherfore he caused theim to
be apprehended lamentyng sore his chaunce that he should
be compelled to loose suche personages by whose valiantnes
and puissaunce he shuld be more dreadfull and fearefull to his
foes and enemies. When these prisoners were examined, they
not onely confessed the conspiracy, but also declared that for
a great some of mony which they had receiued of the Frenche
kyng, they intended either to deliuer the kyng aliue in to the
handes of his enemies, or els to murther hym before that he
should arriue in the duchy of Normandy. Hall.
[596] Rules. N.
[597] God. 1559, 1563.
[598] W. Baldwine. N.
[599] Q. for quoth. 1563.
[600] The, added. 1587.
[601] So, added. 1571.
[602] Of fortune, iustly may say thus. 1559, 63.
[603] The earle. 1559, 63.
[604] At Orleaunce, added. 1571.
[605] The 3 of Nouember, Anno 1428, added. 1571.
[606] A goodly thing we deeme of good report. N.
[607] Seen. 1559, 63, 75, 78.
[608] In. 1559, 63.
[609] How some. N.
[610] My sire and th’earle. N.
[611] Purpose well. N.
[612] Of wrath. 1578.
[613] Hath, misprint. 1563. Hateth. N.
[614] My lims. N.
[615] Hys. 1559, 63.
[616] The, misprint. 1563.
[617] Where ere. N.
[618] Lorde Thomas Montacute, earle of Salisbury, a man
bothe for his greate pollicie and haut corage more to be
compared to the old valiant Romans then to men of his daies.
Hall.
[619] Do norish. 1578.
[620] And in theyr spech for to declare of. 1559.
[621] He was the man at that tyme, by whose wit, strength,
and pollicie, the Englishe name was muche fearfull and
terrible to the Frenche nacion, whiche of hymselfe might bothe
appoynt, commaunde and do all thynges in maner at hys
pleasure, in whose power (as it appeared after hys deathe) a
greate part of the conquest consisted and was estemed,
because he was a man bothe painfull and diligent, redy to
withstand thynges perilous and imminent, and prompt in
counsail, and with no labor be weried, nor yet hys corage at
any tyme abated or appalled, so that all men put no more trust
in any one man, nor no synguler person gat more the hartes of
all men. Hall.
[622] Confesse. N.
[623] Covet them to spoyle. 1559.
[624] Had. 1559.
[625] The text is restored here from the editions of 1559, and
63, as in the others it uniformly stands ‘hee.’
[626] The dolphyn sent lorde Wyllyam Stuard, constable of
Scotland, and therle of Ventadore in Auergne, and many other
nobles of his part to laie siege to the toune of Crauant, in the
countie of Auxerre, within the partes of Burgoyn, wherof
heryng the lorde regent and the duke of Burgoyn thei
assembled a greate armie, the erle of Salisbury was ordeined
capitaine of the whiche. Hall.
[627] After thys fortunate vyctorye obteigned, the englishemen
fyrste gaue greate laudes and thankes to allmyghtie God and
after entered into the towne of Crauant much praisinge the
doynges of the capitaines and the fidelitie of the citezens, and
when they had set all thynges in an ordre they returned to
Paris where of the regente they wer ioyously receiued, whiche
there constituted therle of Salisbury (as he was wel worthy)
vicegerent and lieftenaunt for the king and him in the countries
of Fraunce, Bry, and Champaigne. Hall.
[628] Causde me go. N.
[629] Therle of Salisbury whiche could not slepe in his great
office of truste, layde siege to the toune and castle of
Monntaguilon in Bry, wherof were capitainis Pregent of Cotyny,
and Giulle Bourgoys, Brytons, whiche valiantly defended the
castle by the space of v. monethes, &c. Hall.
[630] With earles, with lordes. N.
[631] To driue the treacherous dolphin out of France. N.
[632] T’Aniow. N.
[633] Flee. 1563.
[634] As might or help. N.
[635] The boldest Frenchmen. N.
[636] ‘Will’ in all the editions except that of 1587.
[637]

Being fortie thousand well arm’d in field,

Fiue hundred men enforced them to yeeld. N.

[638] Did assault them. 1559. Fresh assaulted. N.

[639] Soone. N.
[640] Where in good hope to. N.
[641] Forth. N.
[642] Forward. 1559, 63, 71, 78.
[643] But would hope sure. 1559.
[644] It so chaunced that the lix. daie after the siege laied
before the cytie, therle of Salisbury, sir Thomas Gargraue, and
Wyllyam Glasdale, and diuerse other, went into the said toure
and so into the highe chambre, and loked out at the grate, and
within a shorte space, the sonne of the maister gonner,
perceiued men loking out at the wyndowe, tooke his matche,
as his father had taughte hym whiche was gone doune to
dinner, and fired the gonne, whiche brake and sheuered the
yron barres of the grate, wherof one strake therle so strongly
on the hed, that it stroke away one of his iyes and the side of
hys cheke. Sir Thomas Gargraue was lykewyse striken, so
that he died within two daies. Therle was conueyed to Meum
vpon Loyre, where he laie beyng wounded viii. dayes, duryng
whiche tyme he receiued deuoutly the holy sacramentes, and
so commended his soule to almighty God, whose body was
conueyed into Englande with all funerall and pompe, and
buried at Bissam, by his progenitors. Hall.
[645] Of glory. 1559, 63, 71, 75. The most vncertaine glorie. N.
[646] Sure be, misprint. 1587. Then mortall fooles. N.
[647] W. Baldwine. N.
[648] Quoth. 1559, 63.
[649] Nor the last. 1559, 63, 71, 75.
[650] The heire (sir Stephen de Veignolles) perceiuynge the
hartes, corage, and defence of the Englishe people, caused
thre culuerynes to be shot emongest theim, whereof one
strake the erle (of Arundel) on the ancle, and so brake hys
legge that for pain he fell from hys horsse, then the Frenche
men entered emongest the Englishe army, and tooke the erle
beyng on the grounde, prisoner.... The erle was caried to
Beauoys, where of this hurte he shortly died, and was buried
in the frier’s minors. He was a man of a singuler vertue,
constancie and grauitie, whose death in so troubelous a
worlde, did sore appall the hartes of his nacion. Hall.
[651] Anno 1437, added. 1571.
[652] Write. 1559, 63, 71.
[653] For fault of foode. 1559, 63, 71, 75, 78.
[654] A trusted brother ’stroy hys brother’s blood. 1559, 63.
Trusted brother distroy. 1571.
[655] Hys deth. 1559, 63.
[656] To auoyd. 1559, 63, 71, 75, 78.
[657] Me prysoner. 1559, 63, 71.
[658] An, misprint. 1587.
[659] This young prince and Henry Percie, sonne to the lorde
Percie slaine before at Shrewesbury, by rigor of tempest were
driuen on the cost of Holdeines, called Flamborough hed, the
xxx daie of Marche, where the yonge prince for to refreshe
hymselfe toke lande. He wrought not so preuely, but he was
knowen and taken with all his company, and conueighed to the
kyng beynge at Winsore. Hall.
[660] I were. 1559, 63, 71.
[661] Before that tyme the people of Scotland were rude,
rusticall, without any vrbanitie, hauyng litle lernyng, and lesse
good maners, and good qualities least of all. This prince
beeyng xviii. yeres prisoner within this realme, was so
instructed and taught by hys schoolmaster, and pedagoges
apointed to hym by the onely clemencie of the kynge, that he
not onely florished in good learnynge and freshe litterature (as
the tyme then serued) but also excelled in all poynctes of
marciall feates, musicall instrumentes, poeticall artes and
liberall sciences. In so muche that at hys returne from
captiuitee, he furnished hys realme bothe with good learnynge
and cyuill policye, whiche before was barbarous, seuage,
rude, and without all good nurtur. Hall.
[662] The protector of the realme of Englande, by the consent
of the whole baronage of the same gaue to him in maryage
the lady Jane doughter to Jhon earle of Sommerset,
desceased, not onely syster to Iohn then duke of Sommerset,
but also cosyn germayne remoued to the kynge and nece to
the cardynall of Winchester and the duke of Exceter. Hall.
[663] The heyre. 1559, 63, 71, 75, 78.
[664] Mardo, in ed. 1587; all the others support the above
correction.
[665] Neither regarding his othe, nor estemynge the great
abundaunce of plate and riche clothes of Arras, to hym by the
mother and vncles of his wife liberally geuen and frendly
deliuered, (of whiche sorte of riches fewe or none before that
daie wer euer seen in the countrey of Scotlande) like a dogge
whiche hath cast vp his stomacke and retourneth to his vomet,
or like a snake whiche after his engenderyng with a lampray
taketh again his old poyson, after he had once taken the ayre
and smelled the sent of the Scottishe soyle became like his
false fraudulent forefathers, an vntrue prince, &c. Hall.
[666] The. 1559, 63.
[667] He (Walter Steward, erle of Atholl) perswaded Robert
Steward, hys nephew, and Robert Grame, hys cosyn, and
dyuerse other, to murther and sleye the kynge theyre
souereigne lorde, whiche therto by diuelyshe instigacyon
incenced and procured, came to the toune of Pertho
(commonly called S. Ihon’s towne) and there entered into the
kinge’s priuy chambre, and slewe first diuerse of hys
seruauntes, whiche made resistance and after kylled the kyng
with many mortall strokes, and hurt the quene, whiche, in
defence of her husband, felled one of the traytors. Hall.
[668] Or. 1559, 63, 71, 78.
[669] Such as. 1559.
[670] Without signature in every edition, and therefore
attributed to Baldwin.
[671] The legends of dame Elinour Cobham, and of
Humphrey, duke of Gloucester, were only first printed 1578.
That they were written, and probably printed, in 1559, (if not
for the edition in folio,) appears certain as well by the table of
contents, where they are enumerated, as by the interlocutory
connection being nearly the same with the above, and which
in the succeeding editions of 1563, 1571, and 1575, is varied
according to the notes upon the prefixture of the legend of the
duke of Suffolk, given p. 146.
[672] Quod. 1559.
[673] (Q. M. Fer.) and as. 1559.
[674] Haue here ready penned ii. 1559.
[675] The. 1559.
[676] Is fyrst to be placed in. 1559.
[677] Was cause of ouerthrow to both. 1559.
[678] Blith. N.
[679] Form. N.
[680] Dames. N.
[681] For to diuine. N.
[682] There was taken also Margerie Gurdemaine, a witch of
Eye, besides Westminster, whose sorcerie and witchcraft the
said Elianor had long time vsed, and by hir medicines and
drinkes enforced the duke of Glocester to loue hir, and after to
wed hir. Stowe.
[683] Furies and feends her. N.
[684] Corps. N.
[685] Roger Bolinbrooke, a great astronomer, with Thomas
Southwell, a chanon of S. Stephen’s chappell at Westminster,
were taken as conspiratours of the king’s death, for it was said
that the same Roger should labour to consume the king’s by
waie of negromancie, and the said Thomas should say
masses in the lodge of Harnesey parke, beside London, vpon
certaine instruments, with the which the said Roger should vse
his crafte of negromancie, against the faith, and was assenting
to the said Roger in all his workes. And the fiue and twentith
day of Julie, being Sondaie, Roger Bolingbroke, with all his
instruments of negromancie, that is to say, a chayre painted
wherein he was woont to sit; vppon the foure corners of which
chayre stoode foure swordes, and vpon euery sworde an
image of copper hanging, with many other instrumentes: he
stoode on a high scaffolde in Paule’s churchyarde, before the
crosse, holding a sword in his right hand, and a scepter in his
left, arrayed in a maruellous attire, and after the sermon was
ended by master Low, bishop of Rochester, he abiured all
articles longing to the crafte of negromancie, or missowning to
the faith. Stowe.
[686] The king’s true constellation. N.
[687] Deepest. N.
[688] Nerethelesse. N.
[689] This yere (1442-3) dame Elyanour Cobham, wyfe to the
sayd duke, was accused of treason, for that she, by sorcery
and enchaunment, entended to destroy the kyng to thentent to
aduaunce and promote her husbande to the croune: vpon thys
she was examined in sainct Stephen’s chapell, before the
bishop of Canterbury, and there by examinacion conuict and
iudged to do open penaunce, in iii. open places, within the
cytie of London, and after that adiudged to perpetuall prisone,
in the Isle of Man, vnder the kepyng of Sir Ihon Stanley,
knyght. At the same season wer arrested as ayders and
counsailers to the said duchesse, Thomas Southwell, prieste
and chanon of saincte Stephens in Westmynster, Ihon Hum,
prieste, Roger Bolyngbroke, a conyng nycromancier, and
Margerie Jourdayne, surnamed the witche of Eye, to whose
charge it was laied, that thei, at the request of the duchesse
had deuised an image of waxe, representyng the kyng whiche
by their sorcery, a litle and litle consumed, entending therby in
conclusion to waist, and destroy the kynge’s person, and so to
bryng him to deathe, for the whiche treison, thei wer adiudged
to dye, and so Margery Jordayne was brent in Smithfelde, and
Roger Bolyngbroke was drawen and quartered at Tiborne,
takyng vpon his deathe that there was neuer no suche thyng
by theim ymagined, Jhon Hum had his pardon, and Southwell
died in the toure before execution: the duke of Gloucester toke
all these thynges paciently, and saied litle. Hall.
[690] The 9 of Nouember dame Elianor appeered before the
archbishop and other in the sayde chappell (of S. Stephen’s),
and receiued her penance which she performed. On Monday
the 13 of Nouember, she came from Westminster, by water,
and landed at the Temple bridge, from whence with a taper of
waxe of two pound in hir hande, she went through
Fletestreete, hoodlesse (saue a kerchefe) to Paul’s, where she
offered hir taper at the high altar. On the Wednesday next
shee landed at the swan in Thamis streete, and then went
through Bridgestreete, Gracechurchstreete, straight to Leaden
Hall, and so to Christ church by Aldegate. On fryday she
landed at Queene hiue, and so went through Cheape to S.
Michael’s in Cornehill, in forme aforesaid: at all which times
the maior, sherifes, and crafts of London, receiued her and
accompanied hir. This being done she was committed to the
ward of Sir Thomas Stanley, wherein she remained during hir
life in the castle of Chester, hauing yeerely 100 markes
assigned for hir finding, in the 22 of Henry the sixt she was
remooued to Kenilwoorth, there to be safely kept, whose
pride, false couetise, and lecherie, were cause of hir
confusion. Stowe.
[691] A ballad, that has been modernized, entitled “the
lamentable fall of the dutchess of Gloucester, wife to good
duke Humphry, with the manner of her doing penance in
London streets, and of her exile in the Isle of Man, where she
ended her days,” may be found in Evans’s Old Ballads,
historical and narrative, ed. 1784, Vol. I. p. 317.
[692] The house. 1578.
[693] I shall see you. 1578.
[694] Good peace. 1578.
[695] G. Ferrers. The peculiarity of the above signature in the
addition of quod is noticeable, though, probably, it originated
with the printer.
[696] Knyt vp the ende of her. 1578.
[697] Behold me Humfrey hight by name. N.
[698]

Who in the sixt king Henrie’s rule, with fame

Twice ten yeares kept the troubled state in frame;
 Note well the cause of my vnhappie case,
And ’mongst thy mirrours let the same haue place. N.

[699] Weale, let men beware mishap. N.

[700] With blind securitie. N.
[701] To trust their state. N.
[702] Most smiles to haue in memorie. N.
[703] Who in most certaintie. N.
[704] Men. N.
[705] Same approue. N.
[706] To bite on fawning flatterie’s bait did loue. N.
[707]

Had I to high degree,

And yet in fine they all beguiled mee. N.

[708] Of Henry fourth by name. N.

[709] Henry fift of that same name. N.
[710] To the sixt Henrie vncle. N.
[711] To build vpon. N.
[712] To aduance my. N.
[713] When the fift Henry by his valiancie. N.
[714] T’haue. N.
[715] Which all states do spill. N.
[716] From a feend. N.
[717] Do verefy. 1578.
[718] For euermore. N.
[719] Histories. N.
[720] Neretheless. N.
[721] Bitter. N.
[722] In this season (i of Hen. VI.) Homfrey duke of
Gloucester, either blynded with ambicion or dotyng for loue,
maried the lady Jaquet or Jacomin doughter and sole heire to