Test%20Questions%20Chapter%2080

Test%20Questions%20Chapter%2080 - Chapter 8 Consideration...

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Chapter 8 Consideration of Internal True/False Questions 1. Magnetic tape drives have the advantage of direct access to stored data. Answer: False Difficulty: Medium 2. The operating system is an example of system software. Answer: True Difficulty: Medium 3. For good internal control, programmers should not be given access to complete program documentation. Answer: False Difficulty: Medium 4. Data encryption is an example of data transmission control. Answer: True Difficulty: Medium 5. Internal file labels are designed to prevent errors by programmers. Answer: False Difficulty: Medium 6. For auxiliary storage when the computer is operating, minicomputers use hard disk drives. Answer: True Difficulty: Medium 7. Distributive data processing eliminates the need for data security. Answer: False Difficulty: Easy 8. Most advanced computer systems do not have audit trails. Answer: False Difficulty: Medium 9. Auditors usually begin their consideration of IT systems with tests of application controls. Answer: False Difficulty: Hard Whittington, Principles of Auditing, Fifteenth Edition 121
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Chapter 8 Consideration of Internal 10. Generalized audit software may be used for substantive tests or for tests of controls. Answer: True Difficulty: Medium Multiple Choice Questions 11. Which of the following procedures would an entity most likely include in its disaster recovery plan? A) Convert all data from external formats to an internal company format. B) Maintain a program to prevent illegal activity. C) Develop an auxiliary power supply to provide uninterrupted electricity. D) Store duplicate copies of files in a location away from the computer center. Answer: D Difficulty: Medium Source: AICPA 12. A service auditor's report on a service center should include a(n) A) Detailed description of the service center's internal control. B) Statement that the user of the report may assess control risk at the minimum level. C) Indication that no assurance is provided. D) Opinion on the operating effectiveness of the service center's internal control. Answer: A Difficulty: Hard 13. The report of a service auditor may provide assurance on whether: Controls are placed in operation Operating effectiveness of controls A) Yes Yes B) Yes No C) No Yes D) No No Answer: A Difficulty: Hard 14. Which of the following is a password security problem? A) Users are assigned passwords when accounts are created, but do not change them. B) Users have accounts on several systems with different passwords. C) Users copy their passwords on note paper, which is kept in their wallets. D) Users select passwords that are not listed in any online dictionary. Answer: A Difficulty: Easy Source: AICPA 122 Whittington, Principles of Auditing, Fifteenth Edition
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Chapter 8 Consideration of Internal 15. Which of the following is a software component of a computer system? A) The operating system.
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This note was uploaded on 04/09/2011 for the course ACCT 4773 taught by Professor Pro during the Spring '11 term at Dallas.

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Test%20Questions%20Chapter%2080 - Chapter 8 Consideration...

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