Internal Control and Computer Based Information Systems

Answer a 6 the primary reason for internal auditings

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ANSWER: A 6. The primary reason for internal auditing's involvement in the development of new  computer-based sysstems is to: a. Plan post-implementation reviews. b. Promote adequate controls. c. Train auditors in CBIS techniques. d. Reduce overall audit effort. ANSWER: B 7. Which of the following is an advantage of generalized computer audit packages? a. They are all written in one identical computer language. b. They can be used for audits of clients that use differing CBIS equipment and file  formats. c. They have reduced the need for the auditor to study input controls for CBIS  related procedures. d. Their use can be substituted for a relatively large part of the  required control testing. ANSWER: B 8. Processing simulated file data provides the auditor with information about the  reliability of controls from evidence that exists in simulated files. One of the techniques  involved in this approach makes use of a. Controlled reprocessing. b. Program code checking. c. Printout reviews. d. Integrated  test facility.
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ANSWER: D 9. Which of the following statements most likely represents a disadvantage for an entity  that keeps microcomputer-prepared data files rather than manually prepared files? a. It is usually more difficult to detect transposition errors. b. Transactions are usually  authorized before they are executed and recorded. c. It is usually easier for  unauthorized persons to access and alter the files. d. Random error associated with  processing similar transactions in different ways is usually greater. ANSWER: C 10. The possibility of losing a large amount of information stored in computer files most  likely would be reduced by the use of 11. An integrated test facility (ITF) would be appropriate when the auditor needs to integrity for production programs. 12. Where computer processing is used in significant accounting applications, internal  accounting control procedures may be defined by classifying control procedures into two  types: general and a. Administrative. b. Specific. c. Application. d. Authorization. ANSWER: C 13. The increased presence of the microcomputer in the workplace has resulted in an  increasing number of persons having access to the computer. A control that is often  used to prevent unauthorized access to sensitive programs is:
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a. Backup copies of the diskettes. b. Passwords for each of the users. c. Disaster-
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