Chapter 7

Computer-Assisted Audit Tools and

Techniques
Diwa, Wenchie
4AC01
 MULTIPLE CHOICE QUESTIONS

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
 Computer-Assisted Audit Tools and Techniques

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
 Computer-Assisted Audit Tools and Techniques

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
 Computer-Assisted Audit Tools and Techniques

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
 Computer-Assisted Audit Tools and Techniques

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
 Computer-Assisted Audit Tools and Techniques

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
 Computer-Assisted Audit Tools and Techniques

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
 Computer-Assisted Audit Tools and Techniques

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
 Computer-Assisted Audit Tools and Techniques

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
 Computer-Assisted Audit Tools and Techniques

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