Question

QUESTION 1
The risk that the information is wrong is known as:

a-Information risk.
b-Inherent risk
c-Relative risk.
d-Business risk.

QUESTION 2
An auditor plans to examine a sample of 20 checks for counter signatures as prescribed by the client's control procedures. One of the checks in the chosen sample of 20 can not be found. The auditor should consider the reasons for this limitation and:

a-Evaluate the results as if the sample size had been 19.
b-Treat the missing check as a deviation for the purpose of evaluating the sample.
c-Treat the missing check in the same manner as the majority of the other 19 checks, i.e., countersigned or not.
d-Choose another check to replace the missing check in the sample.

QUESTION 3
Which of the following would be considered by the auditors as a weakness in an IT system?

a-Operators have access to terminals.
b-The programmers are allowed access to the file library.
c-The reprocessing of the exceptions detected by the computer is managed by a data control group.
d-More than one employee is present when the installation of the computer is in use.

QUESTION 4
Computer-based auditing is more likely to be used when:

a-Input transactions are batch processed and the system logic is simple.

b-Processing consists mainly of ordering the input data and updating the master file sequentially.
c-The processing is mainly online and the update is in real time.
d-The outputs are in printed form.

Answer 1

Solution 1:

The risk that the information is wrong is known as "Information Risk"

Hence option a is correct.

Solution 2:

One of the checks in the chosen sample of 20 can not be found. The auditor should consider the reasons for this limitation and "Treat the missing check as a deviation for the purpose of evaluating the sample"

Hence option b is correct.

Solution 3:

Weakness in an IT system considered by the auditors is "The programmers are allowed access to the file library."

Hence option b is correct.

Solution 4:

Computer-based auditing is more likely to be used when "The processing is mainly online and the update is in real time"

Hence option c is correct.