Which of the following statement is not distinguishing feature for computer based processing and manual processing?
- A) Errors in a CIS environment are less systemic as compared to errors in manual processing
- B) The potential for human error in the CIS environment is greater as compared to manual system
- C) In a computer based accounting system, audit trail is in electronic form
- D) Computer processing offers management a variety of analytical tools.
To avoid invalid data input, a bank added an extra number at the end of each account number and subjected the new number to an algoritham. This techniques is known as
- A) Dual read
- B) Test for reasonableness
- C) Check digit
- D) Occurrence correction
When computer programme or files can be accessed from terminals, access can be limited to authorized individuals by__
- A) appointing a librarian
- B) controlling passwords
- C) appointing EDP auditor
- D) Both (a) and (b)
Erroneous data has been detected by computer program controls. It has been excluded from processing and printed separately “Error Report”. Who should most probability by review and follow up on this report?
- A) system, analyst
- B) Data control group
- C) Programmer
- D) Computer operator
General controls will be ineffective when EDP department
- A) Participates in computer software acquisition decisions
- B) Design Documentation for computerized operations.
- C) Originate changes in master files.
- D) Provide physical security for programme files.
Which of the following activities would most likely be performed by EDP department?
- A) Authorising transactions
- B) Parity checks
- C) Distributing output
- D) Correction of transactional errors
The completeness of “wages” figure can be tested by comparing the number of time cards to be processed with transaction on wages sheet. This type of control technique is called
- A) check total
- B) control total
- C) occurrence correction
- D) check digit
Which of following will not affect audit in a CIS environment?
- A) The objective of expression of opinion on financial statements
- B) Compliance procedures adopted by the auditor
- C) Performance of substantive procedures
- D) Evaluation of inherent risk and control risk
Which of the following statements is not true of the test data approach in a test of computerised accounting system?
- A) Test data tests only those controls which the auditor wishes to rely
- B) Test data should consist of data related to all controls prevalent in the organization
- C) The result of test data indicates that all the application and general controls are functioning properly
- D) Test data processed by the client’s computer programme under the auditor’s control
Which of the following CAATs allow fictitious transactions planted by the auditor to be processed along with real ones on client’s system?
- A) Integrated test facility
- B) Test data approach
- C) Generalised audit software
- D) Parallel simulation