Accounting Information Systems Global Edition 14th Edition By Marshall B – Test Bank

Chapter 11 Auditing Computer-Based Information Systems

1 Describe the nature, scope and objective of audit work, and identify the major steps in the audit process.

1) Auditing involves the
A) collection, review, and documentation of audit evidence.
B) planning and verification of economic events.
C) collection of audit evidence and approval of economic events.
D) testing, documentation, and certification of audit evidence.
Answer: A
Concept: The nature of auditing
Objective: Learning Objective 1
Difficulty: Easy
AACSB: Analytical Thinking

2) What is not a typical responsibility of an internal auditor?
A) Helping management to improve organizational effectiveness.
B) Assisting in the design and implementation of an AIS.
C) Preparation of the company’s financial statements.
D) Implementing and monitoring of internal controls.
Answer: C
Concept: The nature of auditing
Objective: Learning Objective 1
Difficulty: Moderate
AACSB: Analytical Thinking

3) What is not a typical responsibility of an external auditor?
A) Helping management to improve organizational effectiveness.
B) Assisting in the design and implementation of an AIS.
C) Preparation of the company’s financial statements.
D) All of the above.
Answer: D
Concept: The nature of auditing
Objective: Learning Objective 1
Difficulty: Moderate
AACSB: Analytical Thinking

4) Which type of work listed below is not typical of internal auditors?
A) Operational and management audits.
B) Information system audits.
C) Financial statement audit.
D) Financial audit of accounting records.
Answer: C
Concept: The nature of auditing
Objective: Learning Objective 1
Difficulty: Easy
AACSB: Analytical Thinking
5) The ________ audit examines the reliability and integrity of accounting records.
A) financial
B) informational
C) information systems
D) operational
Answer: A
Concept: The nature of auditing
Objective: Learning Objective 1
Difficulty: Easy
AACSB: Analytical Thinking

6) The ________ audit reviews the general and application controls of an AIS to assess its compliance with internal control policies and procedures and its effectiveness in safeguarding assets.
A) financial
B) information systems
C) management
D) internal control
Answer: B
Concept: The nature of auditing
Objective: Learning Objective 1
Difficulty: Easy
AACSB: Analytical Thinking

7) A(n) ________ audit is concerned with the economical and efficient use of resources and the accomplishment of established goals and objectives.
A) operational or management
B) financial
C) information systems
D) internal control
Answer: A
Concept: The nature of auditing
Objective: Learning Objective 1
Difficulty: Moderate
AACSB: Analytical Thinking

8) The ________ audit is concerned with the economical and efficient use of resources and the accomplishment of established goals and objectives.
A) financial
B) informational
C) information systems
D) operational
Answer: D
Concept: The nature of auditing
Objective: Learning Objective 1
Difficulty: Easy
AACSB: Analytical Thinking
9) The purpose of ________ is to determine why, how, when, and who will perform the audit.
A) audit planning
B) the collection of audit evidence
C) the communication of audit results
D) the evaluation of audit evidence
Answer: A
Concept: The nature of auditing
Objective: Learning Objective 1
Difficulty: Easy
AACSB: Analytical Thinking

10) Organizing the audit team and the physical examination of assets are components of which two separate audit stages?
A) Planning; evaluating audit evidence.
B) Planning; collecting audit evidence.
C) Collecting audit evidence; communicating audit results.
D) Communicating audit results; evaluating audit evidence.
Answer: B
Concept: The nature of auditing
Objective: Learning Objective 1
Difficulty: Moderate
AACSB: Analytical Thinking

11) Consideration of risk factors and materiality is most associated with which audit stage?
A) Collection of audit evidence.
B) Communication of audit results.
C) Audit planning.
D) Evaluation of audit evidence.
Answer: C
Concept: The nature of auditing
Objective: Learning Objective 1
Difficulty: Easy
AACSB: Analytical Thinking