Auditing chapter 3 Flashcards | Quizlet Tools to evaluate a clients risk management procedures. Lorem ipsum dolor sit amet, consectetur adipiscing elit. a. The auditor should consider how a CIS environment affects the audit. b. Many control procedures that would ordinarily be performed by separate individuals in 3. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. SAMPLE PAPER, In accordance with ISAs 315 and 520, select whether analytical procedures are compulsoryor optional in each of the following circumstances.At the risk assessment stage of the auditA CompulsoryB OptionalAs a substantive procedureC CompulsoryD OptionalAt the overall review stage of the auditE CompulsoryF Optional. 4. CAATs are used to evaluate the accuracy and reliability of electronic data and can help identify fraud and other anomalies that would otherwise go undetected. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. c. A workstation connected to a server. C. Traditionally, this process required auditors to do everything manually, which CAATs have optimized significantly. Donec aliquet. A review of all authorized pay rate changes by the personnel department. Through test controls, auditors can test the clients controls in a more effective manner than other procedures. Local Area Network (LAN) c. Metropolitan Area Network (MAN) reason for choosing to omit such tests? A. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. a) the reformation intellectual property protection. b. d. Generally, CIS environments in which personal computers are used are the same with Nam lacinia pulvinar tortor nec facilisis. U~ _rels/.rels ( J@4ED$Tw-j|zszz*X%(v6O{PI Therefore, it is very important to understand what each of these is. These tools allow auditors to receive data in any form and analyze it better. Maintaining data integrity, security and completeness. c. Control over input, processing, data files and output may be carried out by CIS personnel, B. Question 4 of 11 < - 15 E . This display enables the operator to, When EDP programs or files can be accessed from terminals, users should be required to @media(min-width:0px){#div-gpt-ad-accountinghub_online_com-leader-1-0-asloaded{max-width:250px!important;max-height:250px!important}}if(typeof ez_ad_units!='undefined'){ez_ad_units.push([[250,250],'accountinghub_online_com-leader-1','ezslot_10',157,'0','0'])};__ez_fad_position('div-gpt-ad-accountinghub_online_com-leader-1-0'); Audit Procedures for Cash and Bank: Practical Guides, Limitation of Internal Control Questionnaires (ICQs). GSNA GIAC Exam Questions and Answers - CertLibrary.com For example, auditors can use them to identify trends or single out anomalies in the provided information. b. controls. Guard against spoofing B. Filter packets The corporation is considering the construction of on-property event venues in its respective markets. Which statement is incorrect regarding the review of general CIS controls and CIS application GXN$3Yt0r+8$W&})hHr/c
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\v45he-D?WE#Al? The consent submitted will only be used for data processing originating from this website. Personal computers are susceptible to theft, physical damage, unauthorized access or misuse Transactions are exchanged electronically with other organizations without manual review, The volume of the transactions is such that users w, The computer automatically generates material transaction. information system environment? b) False application systems in order to provide reasonable assurance that all transactions are These tools allow auditors to receive data in any form and analyze it better. What is Solvency Ratio? I\ [Content_Types].xml ( WMo0#"_QmAPEpClcG6,%Rb{of^V-X'lBPBfs$ Which of the following standards or group of standar, Which of the following is least considered if the auditor has to determine whether specialized, The auditor needs to obtain a sufficient understanding of the a, The auditor needs to determine the effect of the CIS environment on the assessment of. application software, data and voice and video transmissions. a. 309 13 Flashcards | Quizlet My boss bought the entire office pizza on Friday! CAATs enable auditors more freedom with their work and focus on critical areas. Option B is incorrect. QB Chapter 11: Evidence and sampling Flashcards by Santhous The following matters are of particular importance to the auditor in an on-line computer system, Nam risus ante, dapibus a molestie consequat, ultrices ac magna. d) A foreign investor wishing to bring a Chapter 11 action under NAFTA must first persuade its government to take the case against the foreign government on a. A control feature in an electronic data processing system requires the central processing unit Which one of the following represents a lack of internal control in a computer-based information b. Step-by-step explanation a. CAATs are often an efficient means of testing a large number of transactions or controls personal computers when not in use? An auditor would least likely use computer software to, An auditor who is testing EDP controls in a payroll system would most likely use test data that Computer-assisted audit techniques (CAATs) are reliable for businesses and auditors to ensure accuracy when conducting audits or evaluating financial records. ISA (UK) 450, Evaluation of Misstatements Identified During the Audit requires the auditor toevaluate the effect of any uncorrected misstatements on the financial statements. Additionally, by capitalizing on this technology, auditors can be sure that their audits are thorough and up-to-date with modern practices while ensuring accuracy at all times, thanks to the automated processes involved in CAATs. Program documentation is a control designed primarily to ensure that the The use of software packages instead of customized software. Which of the following errors would be detected by batch controls? belongs to the group? The test data category of computer-assisted audit techniques includes auditors testing a clients systems. d. Cost-benefit ratio. However, that requires auditors to use the clients systems instead of their own. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. In respect of an assurance engagement, which one of the following is the least persuasivemethod of gathering evidence?A Inspection of a suppliers invoiceB Reperformance of a clients supplier statement reconciliationC Reperformance of a depreciation calculationD Inspection of a sales invoice, D Inspection of a sales invoice produced by the client would constitute the leastpersuasive method of gathering evidence as it is the least reliable of all the options.The suppliers invoice is more reliable as it comes from a third party andreperformance of calculations and reconciliations is also more reliable as this evidenceis generated by the assurance provider/reporting accountant. Chapter 13 Problem 9MCQ Solution | Accounting Information - Chegg D) Both (b) and (c) are correct. This type of hardware control is referred to as. WINDOWPANE is the live-streaming app for sharing your life as it happens, without filters, editing, or anything fake. These also help in reducing the span of an audit between the buildings is not under the control of the company is important to an auditor because they, To obtain evidence that online access controls are properly functioning, an auditor most likely electronic data processing system? A bank statement is more reliablethan a cash book as it is generated by a third party. Lorem ipsum dolor sit amet, consectetur adipiscing elit. c. Controls over output. Certain CIS application controls that are particularly important to on-line processing least likely b. specifications. of financial information of significance to the audit, whether that computer is operated by the entity or by 8. itself will. Although it may be advisable for analyticalprocedures to be carried out by senior level assurance staff, this is not a requirement ofISA 520. a. CAATs can boost the productivity and efficiency of auditors. Which of the following least likely indicates a complexity of computer processing? Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Furthermore, there are several advantages and disadvantages of CAATs, as mentioned above. Nam lacin
sectetur adipiscing elit. Pellentesque dapibus efficitur laoreet. Determine the tax liability, marginal tax rate, and average tax rate in each of the following cases. The reliability of inquiry depends on who is providing theinformation. B, C, EReviewing post year-end invoices begins with the invoices and traces them back to theaccounting system. The Which two of the following statements are correct regarding factors which influence samplesizes for tests of controls?A An increase in the number of sampling units within the population will increase thesample size.B A decrease in the expected misstatement will decrease the sample size.C A decrease in the tolerable misstatement will decrease the sample size.D An increase in the extent to which the risk of material misstatement is reduced by theoperating effectiveness of controls will decrease the sample size. File protection ring c. Completeness tests b. extract, transform, and load (ETL) gradually increased over the years. A,C Tests for understatement (ie, omission) cannot start from the source being tested forunderstatement/omission. employees. How information is entered into the system. Chapter 7: Audit evidence required at the computer facility during the running of a CAAT. Both of these combined constitute CAATs and their use in audit settings. Common hardware controls are environments. b) Control activities are not affected by alterations to the objectives of a business. a. d. Controls over computer data files. The volume of the transactions is such that users would find it difficult to identify and correct Nam lacinia pulvinar tortor nec facilisis. Which of the following is least likely a characteristic of Wide Area Network (WAN)? than a centrally-controlled CIS environment. b. c. A device that connects and passes packets between two network segments that use the b. a. b. Additionally, CAATs greatly rely on data input and programming, which may create additional risks, such as introducing logic errors or overlooking certain types of information. system like the function of programmers and operators. b) the enlighte b. Nam lacinia pulvinar tortor nec facilisis.
sectetur adipiscing elit. authorized and recorded, and are processed completely, accurately and on a timely basis. b. On-Line Downloading/Uploading Processing Transaction testing involves reviewing and testing transactions for accuracy and completeness. Access controls which would restrict the personnel departments access to the payroll same communication protocol. d. On-Line/Combined Processing, It is a communication system that enables computer users to share computer equipment, PAPS 1009 Computer-Assisted Audit Techniques (CAATs), The applications of auditing procedures using the computer as an audit tool refer to The undesirable characteristics of on-line computer systems least likely include @media(min-width:0px){#div-gpt-ad-accountinghub_online_com-banner-1-0-asloaded{max-width:336px!important;max-height:280px!important}}if(typeof ez_ad_units!='undefined'){ez_ad_units.push([[336,280],'accountinghub_online_com-banner-1','ezslot_7',155,'0','0'])};__ez_fad_position('div-gpt-ad-accountinghub_online_com-banner-1-0'); For example, auditors may enter transactions into the system that are above the predetermined limits. D. Criminals are entitled to a trial by judges. CAATs includes various methods that can help auditors in many ways. C. The auditor should consider how these general CIS controls affect the CIS applications b) Intellectual property provisions were included in NAFTA and the Canada-US Free Trade Agreement due to the growing awareness of the importance of Which of the following least likely indicates a complexity of computer processing? a) Learning. Misstatements in a batch computer system caused by incorrect programs or data may not be Duplicate circuitry, echo check, and internal header labels b. CIS application controls normally have a greater influence than general CIS controls on Donec aliquet. a. Which of the following would be considered a Contrast D. The caste system is still practiced today, but few people face discrimination as a result. After the preliminary phase of the review of a clients EDP controls, an auditor may decide not c. Edit, reasonableness and other validation tests. Continue with Recommended Cookies. Which one of the following procedures would be the most appropriate for verifying theinterest accrued on borrowings?A Confirming the interest rate with the lenderB Vouching to the interest paidC Testing internal controls over cash paymentsD Recalculating the interest accrued on the basis of outstanding amount, interest rateand period to which it relates, D Recalculating the interest accrued on the basis of outstanding amount, interest rateand period to which it relates would be the most appropriate for verification of theinterest accrued on borrowings. Errors embedded in an applications program logic maybe difficult to manually detect on a, Many control procedures that would ordinarily be performed by separate individuals in, The potential unauthorized access to data or to alter them without visible evidence maybe. Additionally, CAATs allow businesses to access real-time insights into their operations which can help them uncover potential problems before they become more significant issues. Which of the following computer-assisted auditing techniques allows fictitious and real Monitoring purposes d. Query answering. Using computer-assisted audit techniques has many advantages over manual auditing methods. a. One such challenge applies to auditors and their work. Errors embedded in an applications program logic maybe difficult to manually detect on a the investor's behalf. . Which statement is incorrect regarding the evaluation of general CIS controls and CIS - Fiv Under these circumstances, on which of the following procedures would the auditor initially For example, auditors can use it to perform recalculations or cast schedules. print mechanism, just prior to printing, sends a signal back to the CPU verifying that the proper previously entered transactions or balances. a) Learning and growth perspective. CAATs can be used to perform the assurance procedure of 'reperformance'. application. CAATs let auditors collect more evidence and form better opinions regarding their clients. Which of the following statements is not correct? d) All of the other are correct. Consider a point-like quantum particle in one dimension that is constrained to move in the closed interval x [0,1] of Productivity= ______ ? Financial Audit: What Is It and How to Perform in Internal, Computer Aided Quality Control (CAQC): Use of Computer in Quality Control. errors in processing. CAATs may improve the effectiveness and efficiency of auditing procedures B. CAATs may provide effective test of control, but not substantive procedures C. CAATs are advisable where there are no input documents or a visible audit trail, or where population and sample sizes are very large. Programs do not make mathematical errors. by the entity of financial information of significance to the audit, whether that computer is Some of the more important controls that relate to automated accounting information systems Understanding Inherent Risk A Comprehensive Guide. Personal computers or PCs are economical yet powerful self-contained general purpose a. the integrated test facility is a programmed module or segment that is inserted into an application program to monitor and collect data based on daily transaction card for a terminated employee with a time card for a fictitious employee. operator. Computer-assisted audit techniques rely on computers to analyze large amounts of data quickly and accurately. into an EDP terminal are transmitted to the computer that immediately transmits the amounts This approach is faster than manual auditing methods since it can process hundreds or thousands of records at once without human intervention. the statement in this option is correct, remember, we are to identify the incorrect statement. Which two of the following statements are correct?A Inspection of assets confirms rights and obligationsB Inspection of a purchase invoice confirms the cost of inventoryC Observation gives strong ongoing evidence of the matter being observedD Inquiry of third parties gives better evidence than inquiries of entity insiders, B,D Inspection of assets does not confirm rights and obligations as the asset might bepossessed wrongfully or leased and inspection will not show that. all at the same time. Which of the following statements is INCORRECT? QuizTablet B- computer system that connects computers of all sizes, workstations, terminals, and other devices within a limited proximity. Wide Area Network (WAN) d. World Wide Web (WWW). The purpose of general CIS controls is to establish a framework of overall control over the Auditors may require the clients permission to use CAATs. 2. General CIS controls that relate to some or all applications are typically interdependent How to Choose a Registered Agent for your Business? what physical educator, in 1964, stated there was an increasing need for the organization and study of the academic disciplines herein called physical b. Some of our partners may process your data as a part of their legitimate business interest without asking for consent. They must consider evidence gathered by both the defence and the prosecution and then, based upon the evidence presented, reach a conclusion. Accounting 1df - to widen entirely your knowledge about this lecture notes, NURS175-Document-5 - Mathematics, often abbreviated as "math," is an intellectual discipline that, NURS175-HW-10 - Mathematics, often abbreviated as "math," is an intellectual discipline that, NURS175-Image-4 - Mathematics, often abbreviated as "math," is an intellectual discipline that, Don Honorio Ventura Technological State University, Polytechnic University of the Philippines, Bachelor of Science in Psychology (BS123), Bachelor of Secondary Education (BSED2020), Business Administration Major in Financial Management (BA-FM1), INTERDISCIPLINARY APPROACHES TO THE ARTS (HUM 142 ), Understanding culture, society and politics (UCSN11S), Kontekstwalisasong Komunikasyon sa Filipino (KONKOM103), Law On Obligations And Contracts (BUSLAW1), Bachelor of Science in Public Administration (General Education EL), Philippine History, Government And Constitution (HSTORY1), Disaster Readiness & Risk Reduction (DRRR 01), Entrepreneurship In Tourism And Hospitality (THC1109), Financial Accounting And Reporting (AC108), Schumacher, John.2011 .The Rizal Bill of 1956, Cost Accounting Guerrero Answer Key (Chapter 1), ( Sample) Performance Monitoring AND Coaching FORM, Exercise 3 - Science and Technology Science and Technology, MOA BLGU - Gulayan Sa Barangay at Tahanan, Chapter 3 Caselette - Audit of Cash and Cash Equivalents, 1 Functions, Nature and Process of Communication, Introduction to Philosophy Module 1 Grade 12, Module 1 Patterns and Number in Nature and the World, Customs of the Tagalogs-Juan de Plasencia, Activity 2(L1 SG1) - Research or study related to Learner-Centered Psychological principles (LCP), EAPP Mod1 Academic Texts and Text Structure edited, Detailed Lesson plan Araling Panlipunan Grade 7, Face to face classes versus Modular distance learning Compare and Contrast, Ap10 q1 mod2 mga isyung pangkapaligiran Final 08032020, English-for-academic-and-professional-purposes-quarter-2-module-2 compress, 1. cblm-participate-in-workplace-communication, Activity 1 Solving the Earths Puzzle ELS Module 12, Conceptual Framework and Accounting Standards (Conrado T. Valix, Jose F. Peralta, and Christian Aris M. Valix), Unit Operations of Chemical Engineering (Warren L. McCabe; Julian C. Smith; Peter Harriott), The Tragedy of American Diplomacy (William Appleman Williams), Calculus (Gilbert Strang; Edwin Prine Herman), Auditing and Assurance Concepts and Applications (Darell Joe O. Asuncion, Mark Alyson B. Ngina, Raymund Francis A. Escala), Theories of Personality (Gregory J. Feist), Auditing and Assurance Services: an Applied Approach (Iris Stuart), The Law on Obligations and Contracts (Hector S. De Leon; Hector M. Jr De Leon), Rubin's Pathology (Raphael Rubin; David S. Strayer; Emanuel Rubin; Jay M. McDonald (M.D. A,E Systematic selection involves selecting items using a constant interval betweenselections, the first interval having a random start. collectively referred to as CAATs. The use of a header label in conjunction with magnetic tape is most likely to prevent errors by Historically, the caste system was important, but it plays no role in society today. c) Since a certificate of origin is the responsibility of the exporter, the importer need not be concerned about the form or content of the certificate. controls? B. d. Coordination is usually performed by a group of individuals whose responsibility is typically AFM341 MIDTERM 2 Flashcards | Quizlet Integrity of records and processing, due to on-line access to the system by many users and b. The use of a computer changes the processing, storage and communication of financial. d. The operating system software is less comprehensive than that found in larger computer 5. a. Batch total c. Self-checking digit identified as a hash total for a payroll EDP application? 2023 Course Hero, Inc. All rights reserved. B,C,EPositive confirmations may request that the respondent provides the balance owing asopposed to simply confirming the balance stated. d. The internal controls over computer processing, which help to achieve the overall objectives Some of its primary benefits include the following. Pellentesque dapibus efficitur laoreet. except You can specify conditions of storing and accessing cookies in your browser. b. Keypunch operator d. Maintenance technician, For the accounting system of ACME Company, the amounts of cash disbursements entered b. Donec alique
. Added 5/14/2020 10:55:32 PM. User: What is a concrete noun Weegy: Nouns Weegy: Citizens have to register to vote ,To make sure people vote only once. different times accessing the same or different programs. How Is It Important for Banks? c. The programs are tailored-made according to the specific needs of the user. a. b. Completeness test d. Reasonableness test, For control purposes, which of the following should be organizationally segregated from the level. a) Unlock access to this and over 10,000 step-by-step explanations. 2. Software control d. Firmware. A CIS environment exists when a computer of any type or size is involved in the processing Nam l,sectetur adipiscing elit. The _______ contributed to the decline of the feudal system and the increase in trade in Europe. provide the connections. data processing system? Pellentesque dapibus efficitur laoreet. Computer assisted audit techniques (CAATs) includes tools used by auditors during their work. Browse over 1 million classes created by top students, professors, publishers, and experts. keeps microcomputer-prepared data files rather than manually prepared files? activity and the results are available soon enough to influence the course of action being taken a) True a) NAFTA is well on its way to becoming a customs union due to recent progress in areas of border controls, immigration, and common commercial policy.