Information Technology

Auditing and Assurance

Computer-Assisted Audit Tools And Techniques

Multiple Choice Questions

Submitted to:
Mrs. Joy Cachapero Alonzo

Prepared by:
DIWA, Wenchie R.
4AC01
Chapter 7 - Computer-Assisted Audit Tools And Techniques
Multiple Choice Questions

1. The stage designed to ensure that the transactions are valid, accurate and complete.
a. Batch control
b. Validation control
c. Input control
d. Error control

2. These are source documents that have unique sequential number on them.
a. Post numbered source document
b. Numbered source document
c. Pre numbered source document
d .None of the above

3. The following are types of errors that can corrupt data codes and cause processing errors
except:
a. Transposition errors
b. Singe transposition errors
c. Double transposition errors
d. Multiple transposition errors

4. A control digit added to the code that is originally assigned that allows the integrity of the
code to be established during subsequent processing.
a. Check digits
b. Cross digits
c. Digits
d. None of the above

5. Edit checks in a completed accounting system

a. Are preventive controls
b. Should be performed on transactions prior to updating a master file
c. Must be installed for the system to be operational
d. Should be performed immediately prior to output distribution

6. A primary advantage of using generalized audit software packages to audit the financial
statements of a client that uses a computer system is that the auditor may
a. Access information stored on computer files while having a limited understanding
of the client's hardware and software features
b. Consider increasing the use of substantive tests of transactions in place of analytical
procedures
c. Substantiate the accuracy of data through self-checking digits and hash totals
d. Reduce the level of acquired tests of controls to a relatively small amount
7. An employee in the receiving department eyed in a shipment from a remote terminal and
advertently omitted the purchase order number. The best systems control to detect this
error would be
a. Completeness
b. Batch total
c. Sequence check
d. Reasonableness test

8. In order to prevent, detect, and correct errors and unauthorized tampering, a payroll
system should have adequate controls. The best set of controls for a payroll system
includes
a. Batch and hash totals, record counts of each run, proper separation of duties,
passwords and user codes, and backup copies of activity and master files
b. Employee supervision, batch totals, record counts of each run, and payments by
check
c. Passwords and user codes, batch totals, employee supervision, and records counts of
each run
d. Batch totals, record counts, user codes, proper separation of duties, and online edit
checks.

9. STATEMENT 1: Validity checks compare actual values in a field against known

acceptable values.
STATEMENT 2: Validity checks are used to verify such things as transaction codes,
state abbreviations or employee job skill codes.
a. Both statements are correct
b. Both statements are wrong
c. Only statement 1 is correct
d. Only statement 2 is correct

10. When testing a computerized accounting system, which of the following is not true of the
test data approach?
a. The test data need consist of only those valid and invalid conditions in which the
auditor is interested
b. Only on transaction of each type need be tested
c. Test data are processed by client's computer programs under the auditor's control
d. The test data must consist of all possible valid and invalid conditions