IT Controls
CPA Auditing and Attestation (AUD) · Learn by Concept
Help Questions
CPA Auditing and Attestation (AUD) › IT Controls
Of the following computer-assisted auditing techniques allows fictitious and real transactions to be processed together without client operating personnel being aware of the testing process?
Data entry monitor
Input control matrix
Integrated test facility
Parallel simulation
Explanation
An integrated test facility uses test data commingled with actual data to test transactions.
Logical Checks include:
Limit Tests
Validity checks
Check Digits
All of the above
Explanation
Logical checks include: validity checks, limit checks and check digits
Processing data through the use of simulated files provide an auditor with information about the operating effectiveness of controls. One of the techniques involved in this approach makes use of:
Controlled reprocessing
Input validation
An integrated test facility
Program code checking
Explanation
An integrated test facility runs test transactions through the live system and posts to simulated files to provide an auditor with information about the operating effectiveness of controls.
As an audit test, John James CPA uploaded client data to its software and compared the results to the client output. This is an example of
Check digits
Validity Checks
Parallel simulation
Embedded audit modules
Explanation
This is an example of a parallel simulation. The auditor compares the output received from its system with the output received from the client system.
Test Data
includes erroneous information
data used to test the sample size
data used to check management for fraud
all of the above
Explanation
Test data will include erroneous data. The purpose of using erroneous data is to assess the system capability of validating data. It uses erroneous data to locate and identify the source of the error.
When an engagement team confronts a difficulty in their audit due to a lack of understanding of a certain component of IT, the team should resort to which option?
Trust management's word
Pursuing an independent IT specialist
Abandoning the testing area
Assume fraudulent activity
Explanation
When there is an area of testing which the engagement team feels it would need additional expertise in, the correct option would be to work with a specialist in the field rather than make assumptions, give up, or blindly trust.